Petroleum marketers to get another N45 billion subsidy claim

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New payment procedure to avoid Federal Government liability against litigation between banks and marketers.

The Federal Ministry of Finance on Wednesday said it was currently processing for payment the latest batch of subsidy claims to petrol marketers totalling another N45 billion.

The Special Adviser to the Minister of Finance on Media, Paul Nwabuikwu, said the Office of the Accountant-General of the Federation, OAGF, also confirmed that some marketers who submitted letters of indemnity have already received their payments.

Mr. Nwabuikwu said submission of letters of indemnity was an additional requirement for payment following the demand by banks that financed imports by some marketers.

The OAGF, he said, had established the new payment procedure to ensure that the Federal Government was not held liable in the event of any litigation between these banks and their marketer-customers.

The banks had written to the OAGF through their lawyers to complain that some of the marketers were making interest payments through other banks contrary to the terms of agreements reached before they issued the loans.
Consequently, the banks had insisted that the interest payments be made through them since they granted the loan facilities that attracted the interest.

Mr. Nwabuikwu said only marketers whose claims were cleared after they had gone through the verification processes were paid to forestall the repeat of wrong and irregular payments.

In March, 2014, Mrs. Okonjo-Iweala had said that Federal Government paid N41 billion to 27 marketers whose claims had been verified for subsidy reimbursements.

The marketers were listed as A-Z Petroleum Product, ACORN Petroleum, AITEO Energy Resources, ASCON Oil and Gas Company, AVIDOR Oil and Gas Company, Dee Jones Petroleum Gas, and CONOIL, Mobil Oil Nigeria, MRS Oil and Gas Company, NEPAL Oil and Gas Service, and NIPCO, Northwest Petroleum and Gas, and OANDO.

Others included Dozzy Oil and Gas, Folawiyo Energy, Gulf Treasures, Hudson Petroleum, Hyde Energy, Ibafon Oil, Master Energy Oil and Gas, and Matrix Energy, OBAT Oil and Gas Services, Rainoil, Shorelink Oil and Gas Services, Techo Oil, Tempogate Oil and Energy Company and Total Nigeria.

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