Fuel crisis looms...

Oil marketers on Sunday in Lagos gave the federal government seven-day ultimatum to settle outstanding debts totalling N800 billion, failing which depots would cease operations across the country.

Although the state firm, NNPC, is currently the sole importer of petrol into Nigeria, it relies on the depots of the oil marketers to store and transfer petrol. Any closure of the depots by the marketers could thus lead to a fresh round of fuel scarcity similar to that witnessed in December last year.

The marketers, comprising Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association (DAPPMA) and Independent Petroleum Products Importers (IPPIs), said failure to meet the deadline would also force its members to disengage workers from depots.

Confirming the seven-day notice, Patrick Etim, Legal Adviser to IPPI told the News Agency of Nigeria (NAN) that banks have taken over investments and assets of oil marketers over unpaid debts.

According to Mr Etim, marketers have no choice than to ask their workers to stay at home over unpaid salary arrears due to huge subsidy debts owed by the government.

“The only way to salvage the situation is for government to pay the oil marketers the outstanding debts through cash option instead of (the) promissory note being proposed.

“As I speak, nothing has been done several months after assurances received by (the) government saying it would pay off the outstanding debts.

“The oil marketers have requested that forex differential and interest component of government’s indebtedness to marketers be calculated up to December 2018 and be paid within next seven days from the date of the letter sent to the government,’’ he said.

Mr Etim said that several thousand jobs were on the line in the industry, as oil marketers began the cut-down of their workforce due to inability to pay salaries.

“At the inception of the current administration, marketers engaged the government with the view to secure approval for all outstanding subsidy-induced debts handed over to the current administration,’’ he said.

He said the current administration paid part of the debts but added that a substantial portion of the subsidy interest and foreign exchange differential was still pending.

The Executive Secretary of DAPPMA, Olufemi Adewole, also confirmed the seven-day ultimatum notice to NAN.