Fuel scarcity looms as subsidy debt hits N356.2bn

Aggregate subsidy arrears owed oil marketers by the Federal Government has been put at N356.2bn. Out of this amount is the sum of N100bn the Federal Government had made provision for in a Sovereign Debt Note (a post-dated financial instrument), which is expected to mature at the end of April 2015.

However, the remaining N256.2bn comprises actual subsidy arrears for part of 2014 (batch T and U) and 2015 (batch A and B) and the foreign exchange differentials cum bank interests.

This position was disclosed to journalists on Friday in Lagos at a meeting held by the executives of the Major Oil Market Association of Nigeria and Depot and Petroleum Products Marketers Association.

Speaking at the meeting, the Executive Secretary, MOMAN, Mr. Thomas Olawore, said as of Thursday this week, members of both association had just three and a half days left for stock to be depleted. This timing, according to him, is expected to lapse by Sunday midnight.