Oil rig
29 November 2016, Lagos – Nigeria needs at least $14 billion a year in new investments over the next five years to raise oil output to 2.2 million barrels a day (bpd) which is the national budget output benchmark, the Managing Director of Shoreline Natural Resources, an independent oil producing company, Ladi Bada, has said.
One of the oil marketers, who spoke to Vanguard in Abuja pleading anonymity, disclosed that the seeming sanity in petroleum products distribution and sales across the country can be likened to the, “peace of the graveyard,’ as he noted that marketers are only ensuring that they are not seen as individuals seeking to sabotage the efforts of government.
He stated that the marketers had written series of letters over their predicaments to the Presidency and that the Presidency had agreed to grant them audience, while he warned, however, that if nothing is done to address the issue of the debts owed them, they would be forced to take drastic measures that might lead to the return of another fuel crisis.
He explained that the amount owed the marketers was for foreign exchange differentials owed both major oil marketers, independent oil marketers and other petroleum marketers.
He said the amount was the balance from the payments made by the Goodluck Jonathan administration, before handing over to President Muhammadu Buhari, while the rest was incurred in May 2016, when the Federal Government devalued the Naira.
According to the source, major oil marketers are owed about $500 million, while independents, depot and petroleum products marketers are owed about $1.2 billion. The source also confirmed that some of the oil marketers are indebted to the government, stating, however, that their indebtedness pales in comparison to the huge debt the Federal Government owes the oil marketers.
He further stated that the oil marketers’ indebtedness to the country was more recent, while the Federal Government’s debts dated back to May 2015. “Irrespective of the fact that our own debt is recent, very small and insignificant, compared to the amount the Federal Government owes us, the government is asking us to pay, while nothing is said about their own debt which is huge and dates back to 2015,” he said.
He noted that as a result of the huge debts, majority of the oil marketers had sacked a large number of their staff, as many of them are finding it extremely difficult to pay staff salaries and even sustain their operations, as a result of the unfavourable operating environment.
- Vanguard
