September 22, 2017

Petroleum importers hoist concerns over outstanding funds payment

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Petroleum products importers in the country have hoist concerns over the outstanding payment of about US$1.18bn funding claims on importation of Premium Motor Spirit (PMS) in Nigeria.

The exceptional sum was estimated to be due to marketers under the aegis of Major Oil Marketers Association of Nigeria (MOMAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN), who engaged in product importation between November 2013 and June 2014.

It is speculated that the Federal Ministry of Finance publication differs from that of the marketer’s position on the subsidy payment of US$272.2bn claimed to have been paid to the marketer covering from December 2013 to February 2014.

The MOMAN Executive Secretary Obafemi Olawore pointed out that the publication doesn’t show any actual scenario in the payment schedule.

According to Olawore, the ministry actually paid the sum, but it was calculated to patch up part of November 2013 cargoes, while about US$250.86m are still outstanding for last year’s cargoes.

It was noted that batches ‘A’ to ‘G’ products have already been imported this year, amounting to US$92.54m. Therefore, the cumulative total owed by the government stands at US$19.06bn. However, US$581.21bn of the total sum is being owed by the MOMAN members.

The Petroleum Support Fund (PSF) payment schedule was ratified by all stakeholders: it stipulates that the grant payment should be made within 45 days, after which the banks would start charging interest from the 46th day, although the government has evaded on the agreement and for that reason they should be responsible for the interest rates. Consequently the marketers may be forced to stop importation if the payments are not made at an appropriate period.

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