The Senate has approved N129 billion as final subsidy
arrears claim to 67 oil marketing companies. This approval brought the total of
all three approvals given by the Senate on subsidy payments between July last
year and now to N545.9bn.
The approval followed the adoption of the report of the
Committee on Petroleum (downstream), chaired by Sen Kabiru Garba Marafa (APC,
Zamfara). The Senate last Tuesday approved another N68.9bn for 19 oil
marketers, bringing the total to N416.9bn.
The Senate also commended the Federal Government for its
commitment to clear all subsidy arrears claims in order to put an end to all
issues concerning subsidy payments.
Some of the oil companies to benefit from the latest
approval included A. A. Rano, ASCON, Aiteo, Total Nigeria Plc, MRS Oil Plc, MRS
Oil and Gas Ltd, Forte Oil Plc, Mobil Oil Nigeria, NIPCO Plc, Oando Plc,
Rahamaniyya Oil, Imad Oil and Gas Ltd.
The committee in its report observed that all subsidy
arrears claims were based on three inter-related elements of subsidy, Forex
differential and bank interest. It said the recent request computation was
based on Forex differential.
The panel equally observed that due to scarcity of foreign
exchange within the period, oil marketers were allowed to source Forex outside
the Central Bank of Nigeria (CBN) rate to enable them meet the country’s
petroleum products demand.
But the panel said all NNPC retailers got their product
allocations directly from the Petroleum Products Pricing Marketing Company
(PPPMC) at already subsidized rate, therefore did not require Forex to do
transaction.
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