6 December 2018

Nigeria: N800bn Subsidy Debt - Nigerian Govt, Oil Marketers Reach Agreement - Finance Ministry

Photo: Daily Trust
NNPC towers.

The federal government and oil marketers on Thursday agreed on settlement terms over the disputed N800 billion outstanding subsidy claims, an official said.

A finance ministry statement did not state the terms of the agreement but said it was reached during a meeting convened by the Debt Management Office (DMO) in Abuja to review concerns by both parties.

The statement, however, said part of the agreement was for all parties to ensure operations at all petroleum products depots and sales outlets continued uninterrupted.

In attendance at the meeting were representatives of the petroleum products marketers, namely Depot and Petroleum Products Marketers Association (DAPPMA), Major Oil Marketers Association of Nigeria (MOMAN) and Independent Petroleum Marketers Association of Nigeria (IPMAN).

Others were officials from the Federal Ministry of Finance, DMO, Nigerian National Petroleum Corporation (NNPC), Central Bank of Nigeria (CBN), Budget Office of the Federation, Office of the Accountant-General of the Federation and the Petroleum Products Pricing Regulatory Agency (PPPRA).

Last Sunday, some of the oil marketers issued a seven-day ultimatum to the government to pay the debt or risk a shutdown of depots and fuel distribution outlets nationwide.

Although the government responded with an offer of N340 billion, the marketers rejected it, claiming promissory notes would not help them resolve the immediate challenge of paying their workers' outstanding salaries and other obligations.

More details later...

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