Petrol scarcity may worsen: Marketers threaten to shutdown depots over N650bn subsidy

The lingering petrol scarcity in Nigeria is under threat of getting worse as petrol marketers engages the Federal Government in dispute over payment N650 billion outstanding subsidy.

The Depot and Petroleum Marketers Association of Nigeria, (DAPPMA) have issued the federal government 14 days ultimatum to pay the N650 billion subsidy debt or they will shut down all petrol depots in Nigeria.

DAPPMA, in a letter dated 20th February, 2018, signed by Olufemi Adewole Executive Secretary, and addressed to the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, the marketers complained of the pressure from their creditors, who have not allowed them in their bids to recover their loans.

The letter copied the Vice President and Senate President reads inte4r alia: “Subsequent to our letter ref: DS/ES/Presidency/16 dated 24th Jan, 2018, and copied to you (as attached), we again observe a lack of response on the part of the Federal Government, to the plight of petroleum marketers, many of which have become financially insolvent.

“We are continually under pressure by, our banks/AMCON, with looming threats of imminent take-over of our petrol stations and Tank Farms and other creditor labour unions, NARTO/PTD to whom we are substantially indebted due to past freight services.

“In the light of the fore going, Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) members do not have any other option open to us to forestall increasing debt burdens of borrowing to pay staff than to immediately commence massive staff disengagement as earlier forewarned in our letter of 24th January, 2018, where we had, in the light of the above and after exhausting all formal avenues to secure payment of these debts, alerted the Federal Government, via a 21-day notice to the likelihood of disengaging personnel; a last resort to curtail spiralling borrowings and interests in the effort to meet salary obligations to underutilised personnel.

 “This letter serves as a fresh 14-day reminder from today and an opportunity for the Federal Government tiers and its agencies to speedily approve and pay off its remaining subsidy era indebtedness to all our members and, indeed, all petroleum marketing companies.”