A bit of respite might be coming soon for the fuel crisis in the nation as the Federal Government has reportedly agreed to pay outstanding subsidy claims of N159bn to oil marketers, who import refined petroleum products into the country.
Spokesperson for the Independent Petroleum Marketers Association of Nigeria, Yakubu Suleiman, told Reuters that the government had agreed to pay the remaining balance last week and although nothing had come yet, the marketers were hopeful that it could be this week or next.
The President Muhammadu Buhari administration had on May 29, 2015 inherited a subsidy debt of N291.7bn from the administration government of former President Goodluck Jonathan.
The Petroleum Products Pricing Regulatory Agency has since then verified some cargoes of petrol imported into the country by some of the marketers, adding to the debt.
An acute fuel shortage crippled the country in April and May as importers shut their depots to press their case, because they were worried that the new government of Buhari would not honour the debt.
The President is expected to review closely the subsidy scheme, which was revealed to have paid out over N1tn in fraudulent claims in 2012.
Last week, the country saw a return of long queues in filling stations and a hike in the price of Premium Motor Spirit in some stations, stoking up activity in the black market.
The Executive Secretary, Major Oil Marketers Association of Nigeria, Mr. Obafemi Olawore, also stated that the banks were not helping the marketers with letters of credit, adding, “Our importation has gone down to almost zero. We continue to import, but at a lower volume. So, that is what is happening.
“Any time you see queues, it is because the NNPC, one way or the other, does not give us products. Now, they have given us some products and we are going to start distributing. So by Wednesday, we will see appreciable improvement.”
