FG, marketers deadlock on outstanding subsidy debt

firstclassnewsline net

Firstclass Newsline learnt that the meeting, which holds in Abuja,
will attempt to resolve the controversy surrounding the outstanding
actual subsidy arrears being owed the marketers and when it will be
paid.
While the minister gave the outstanding indebtedness of the government
to the marketers as N131bn, the marketers insist that they are still
being owed N200bn after last week's payment of N154bn.
The Executive Secretary, Major Oil Marketers Association of Nigeria,
Mr. Thomas Olawore, told one of our correspondents on Sunday that the
government had paid N154.2bn out of the N354.4bn it owed the
independent and major marketers as well as the depot owners, leaving a
balance of N200.2bn.
But the minister said this figure could not be correct, noting that
the balance that was left based on the Petroleum Pricing Products
Regulatory Agency's template was about N131bn.
She said, "As you know, we paid N156bn recently, N100bn of the
principal payment that we owe them and then we paid N56bn interest
rate and some remaining exchange rate differentials. Prior to that, we
had just paid N31bn exchange rate differentials. So, at the time we
paid that last week, what we had outstanding was N98bn."
"As of now, since we made the announcement last week, it has now risen
from N98bn to N131bn outstanding in principal payment. And they are
now making a demand of N200bn and I ask them what is the balance for?"
However, Olawore said the N200.2bn balance was based on a template
agreed upon with the PPPRA and that the minister could not change it
overnight without the input of all stakeholders.
He said, "The minister agreed to meet us tomorrow (Monday) to discuss
how the balance of N200.2bn will be paid.
"We will explain to her that it is N200.2bn. The PPPRA is there as the
middle party and will be able to establish the truth based on the
agreed template."
Olawore confirmed that the tanker owners and drivers had temporarily
suspended their strike and commenced lifting of products because of
the appeal that the marketers made to them following the payment of
part of the debt owed them by the Federal Government.
Firstclassnewsline.net