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FG to release N41b oil subsidy owed marketers Jan.11

Fuel Scarcity,A physically challenged in search of fuel, at Obalende area of Lagos. Picture. PHOTO; Kehinde Gbadamosi
Fuel Scarcity,A physically challenged in search of fuel, at Obalende area of Lagos. Picture. PHOTO; Kehinde Gbadamosi

The Federal Government will on Jan.11, pay N41 billion oil subsidy arrears owed major marketers for the second quarter of 2009.

Mr Abiodun Ibikunle, the Executive Secretary, Petroleum Products Pricing Regulatory Agency (PPPRA), made this known to newsmen yesterday in Lagos.

He said government had concluded the plan to release the balance of the outstanding  N41 billion owed the major marketers.

Ibikunle said that the money had been approved for payment since Dec. 31, while the process of paying the marketers was concluded on January 6.

He said the last batch of the claims that came in December is being worked on for payment to ease the lingering crisis over fuel importation by the marketers.

Ibikunle said government had instructed the Central Bank of Nigeria (CBN) through the PPPRA to immediately release their funds to allow importation.

According to him, this is a good strategy to encourage active participation in fuel importation under the scheme of Petroleum Support Fund (PSF) in 2010.

He said:“The conclusion of payment was finalised at the stakeholders’ meeting on Thursday with Mr Odein Ajumogobia, the Minister of State for Petroleum, to evaluate the recurring fuel scarcity.

“Focus of the meeting is to find lasting solution and to look at modalities in bridging the distribution gap created by the inability of the banks to finance the importation of petrol.”

He added that the meeting also focused on the importers’ refusal to supply the NNPC products on account of huge debt owed them .


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