18 November 2012

Nigeria: Fuel Shortage May Worsen As Capital Oil Shuts Down

Capital Oil and Gas Limited says it has given heed to the court order shutting its operations but warned that the development could further cripple the supply of petrol in the country.

Mr. Ifeanyi Ubah, the embattled Managing Director of the company, in a statement, nevertheless alerted to what he claimed as an unfolding conspiracy to take over the company. The statement regretted that those who want to take over Capital Oil were unwittingly succeeding through the help of their friends in government.

The firm, owned by Ubah, according to industry sources, accounts for an estimated 35% of daily petroleum products distribution in the country.

The assertions by the company is coming against the insinuation that recent actions taken against the company were aimed at both crippling the competitive edge of the company in the market place and aborting alleged moves by Ubah to contest the 2014 gubernatorial election in Anambra State.

Ubah and his Capital Oil Company are presently dogged in battle over alleged indebtedness of the company to another firm. The company is also allegedly exposed to some Nigerian banks, a development that led to the court order obtained by the Assets Management Company of Nigeria , AMCON, freezing the company's operations.

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