A government official who spoke with reporters described it as “a stab in the back” – as another fuel crisis looms.
The Nigerian National Petroleum Corporation (NNPC) had been the sole importer of PMS but a crippling crisis ensued as the corporation could not get enough foreign exchange from the Central Bank of Nigeria (CBN) at the official rate of N197/$1.
The corporation was also overwhelmed by the volume of importation.
To resolve the crisis, marketers – who stopped importing petrol in the last quarter of 2015, blaming lack of policy clarity – were invited to a round-table by the federal government.
“We reached a number of agreements. One, they would source for forex from the secondary market. Two, the pump price would be adjusted upward to allow them recover without subsidy,” he said.
“In reaching the agreement to increase the price from N86.50 to a maximum of N145 per litre, we worked with a rate of N300 to $1, although the interbank rate is N285, and that is the secondary market where they were to source forex.
“We also agreed to clear subsidy areas running into about N50 billion, which had been outstanding since 2015. All agreed, and government went ahead to announce the price increase.
“We also paid the subsidy areas. All of a sudden, the marketers started saying they needed forex from the CBN again. They are yet to resume importation, and what the NNPC has in stock cannot last the distance.”
While members of Depot and Petroleum Products Marketers Association of Nigeria (DPPMAN) would want the federal government to make forex available for them to import petroleum products,
Reports claim that members of Major Oil Marketers Association of Nigeria (MOMAN) are more disposed to the introduction of a second window of forex rather than seeking the hard currency from CBN.
The CBN has already hinted about the introduction of a secondary window, where autonomous sources of foreign exchange will channel their funds and trade at a rate closer to market realities.
While the official rate is N197-N200, interbank is N285 and black market is averagely N345. Click to signup for FREE news updates, latest information and hottest gists everyday
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Goes a long way to show people,s distrust and mistrust of this regime. Their fiscal policies are childish and not even the Fulani herdsmen have any belief in them. Please resign and save us some domestic and overseas embarrassments.
ReplyDeleteI am more confused than ever on this petrol matter, do we call it insincerity or sabotage or lack understanding of governance. God help us.
ReplyDeleteCorruption in Nigeria is hydryheaded,the government has a lot of evil protagonists to subdue before normalcy would prevail in that country.Most of the oil importers are pdp beneficiaries and allies,they have replaced their blood with corruption making them inhumane
ReplyDeleteThe marketers are used to the free meal called subsidy, the government should look inward by making the refineries work, I believe the stolen funds will fix at least one or two. Until then, the crooked marketers will hold the government by the balls.
ReplyDeleteLa i advice you go and read your book the government its self is the scam in the subsidy becasue they have always introduce scam into the subsidy funds all the money you hear them call as subsidy its not own by marketers it is own by the financial institutions.
ReplyDeleteTHIS IS HOW THE SUBSIDY WORKS, THE MARKETERS GOES TO THE BANK TO GET FINANCIAL HELP WITH AN ALLOCATION FROM THE FEDERAL GOVT WHOS OFFICIALS HAD COLLECTED BRIBE FROM MARKETERS BEFORE THEY ISSUE THE ALLOCATION TO THEM
THE BANK LEND THE MARKETERS THIS FUNDS TO BUY THE PRODUCTS NORMALLY THE MARKETERS WILL REQUEST THE BANK TO INVEST HALF OF THE MONEY AND INITIATE THE OTHER HALF OF THE PAYMENT ON BEHALF OF THE GOVT WHO SUBSIDIZE THE PRODUCT BY CONTRIBUTIONS TO ALL THE PMS THAT COMES INTO NIGERIA
THE BANKS SUM ALL FUNDS TOGETHER AND PAY THE SUPPLIERS FOR THE PRODUCTS, THE MARKETERS SELLS THE PRODUCTS AND REMIT MONEY BACK TO THE BANKS WHO FUNDED THE OPERATIONS
THE FUNDS ARE HUGE NO DOUBT BUT THET ALL GO BACK TO THE BANKS THAT HAVE INVESTED THE MONEY IN THE FIRST PLACE
NOW SOME MARKETERS PLAY SHADDY DEALS WITH GOVERNMENT OFFICIALS HAND IN HAND TO WRITE PAPERS AND COLLECT FUNDS WITHOUT OPERATIONS THATS THE SCAM IN THE DEAL
BUT THIS SUBSIDY IS TO SUPPORT ALL CITIZEN FOR THERE DAILY LIFE
PMS INCREASE IN NIGERIA TURN EVERYTHING MORE EXPENSIVE. NIGERIANS YOU ALL HAVE TO DO YOUR RESEARCH
What is this all-caps nonsense?
ReplyDeleteI tire o
DeleteOur government is tired to the extent they indirectly telling us to source alternative for petrol,let's wake up our reseachers and find something to replace petrol.
ReplyDeletePoor policy making is the government major problem. They should stop blaming the marketers and do the right thing to save the country economy and the poor masses as well. The marketers follows government instructions but government could not meet its terms of their agreement.
ReplyDelete