There would be hiccups in the supply of fuels in the country as the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMA)yesterday insisted that its members will withdraw their services as planned today and refuted reaching an agreement with the Federal Ministry of Finance on the payment of the N800 billion subsidy arrears.
If the 65 members of the association decided to withdraw their services the impact would be significantly felt in most parts of the country as they mostly service the hinterlands through their coastal depots.
However the Nigerian National Petroleum Corporation (NNPC) said it has fast-tracked agreements with bulk purchase Marketers in the country, according to a statement released weekend in Abuja by the corporation’s Group General Manager, Group Public Affairs, Ndu Ughamadu.
Quoting the NNPC Chief Operation Officer (COO), Downstream, Henry Ikem Obih, Ughamadu stated that all NNPC depots, Petroleum Products Marketing Company (PPMC) throughput partner depots, the Major Marketers depots and depots of Depot and Petroleum Products Marketers Association of Nigeria (DAPMAN) members who signed the Bulk Purchase Agreement, BPA, with PPMC as well as NNPC Retail stations, Major Marketers Association of Nigeria (MOMAN) and Independent Petroleum Marketers Association of Nigeria (IPMAN) filling stations, will continue to operate at maximum levels to ensure uninterrupted distribution of petroleum products nationwide.
Olufemi Adewole, the executive secretary, Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), while talk to BusinessDay said that nothing has changed from it earlier decision of closing shops today because of the government refusal to pay them their money.
However another twist has been added to the saga as of Major Oil Marketers Association of Nigeria (MOMAN), another strong association in the downstream told BusinessDay that it was part of the deal of withdrawing it services.
Clement Isong, executive secretary told BusinessDay that his association is not part of the threat of withdrawing services.
As a matter fact the association said that it members will down tool today as planned as there was no concrete agreement entered into with the federal government over the issue
Olufemi Adewole in a statement signed by him at the weekend, reiterated that there was no agreement, claiming that offers by ministry failed to meet the legitimate demands of the association.
“We refer to the press release from the Federal Ministry of Finance on Dec. 6 following the meeting with marketers under the aegis of Major Oil Marketers Association of Nigeria (MOMAN), and DAPPMA, and Independent Petroleum Marketers Association of Nigeria (IPMAN), said the marketers had agreed to resume operations”.
‘ We did not signed the purported document with government as claimed. We still stand by our utimatum.
He also said with the development, the ultimatum still stand, while adding that the marketers could not continue to borrow money to pay staff salaries.
It would be recalled that the oil marketers on Dec. 2 gave the Federal Government seven-day ultimatum to settle outstanding N800 billion subsidy payment debts.
They said failure of the Federal Government to make the payment of the arrears would lead to depots ceasing operations across the country.
Also the Federal Ministry of Finance, on Dec.6, said that the Federal Government and petroleum marketers had agreed on the settlement of outstanding claims.
The ministry in a statement issued by Paul Abechi, Special Assistant on Media and Communications to the Minister of Finance, Zainab Ahmed, in Abuja assured that operations at all depots and sales would continue until further notice.
Abechi said it was contained in a statement jointly signed by officials of the Federal Government and representatives of the petroleum marketers after a joint meeting.
According to him, the petroleum marketers expressed satisfaction over the arrangement being made by the Federal Government to settle their claims and assured the members of the public of availability of petroleum products.
He said that the meeting which was held at the Ministry of Finance in Abuja, had in attendance senior government officials from the Ministry of Finance, the Debt Management Office (DMO), the Nigerian National Petroleum Corporation (NNPC) and the Central Bank of Nigeria (CBN).
However, the oil marketers said: “We refer to the press release from the Federal Ministry of Finance following the meeting with marketers under the aegis of DAPPMAN, MOMAN and IPMAN and most respectfully refute its contents with the following clarifications.
“DAPPMAN reiterates that there was no agreement reached because offers by government failed to meet the legitimate demands of the association and we did not sign the purported document.
“Hence, our ultimatum stands as we cannot continue to borrow from banks to pay staff salaries.
“DAPPMAN’s demands made to the FG through the Honourable Minister of Finance and Debt Management Office was to pay cash and the total sum of indebtedness to marketers within the time frame.
“This was expressed in communications with the government , Ministry and other relevant office.”
According to the marketers, this is to enable them continue in business; pay staff and not rely on facilities from banks which are no longer forthcoming.
They also said that in the past three years, DAPPMAN had highlighted the adverse impact those sovereign debts forced on marketers due to Federal government’s inability to comply with the terms of marketers agreement with PPPRA for its Petroleum Support Fund(PSF)scheme and the devaluation of the naira.
“We affirm that of all stakeholders, MOMAN, IPMAN and DAPPMAN that participated in the PSF scheme, DAPPMAN has the largest debt exposure in the downstream sector.
“DAPPMAN has alerted the FG to this dire situation and specifically to the challenge our member companies face, leading to our inability to pay December 2018 salaries to our teeming work force without the immediate settlement of the debts owed by the FG.
Olusola Bello
