Adaobi Rhema Oguejiofor
The Natural Gas and Oil Suppliers Association of Nigeria (NOGASA) has asked the Federal Government to pay up the billions of naira it owes marketers for bridging costs that accumulated, which he said should have been done before the removal of fuel subsidy.
The President of NOGASA, Benedict Korie, made this call during a media briefing on Wednesday. He expressed that the amount the marketers are being owed is crippling their cash flow and could impact the continuous supply of the product.
Korie explained that the removal of subsidy has thrown up new challenges, as marketers now need huge funds in order to import petrol. He added that the cost of importation has tripled, and that securing bank loans come with a high interest rate of 30 percent, which he described as being “equal to economic suicide.”
In his own words, “before now, we had the Petroleum Equalisation Fund (PEF) that took care of bridge claims but now, it’s no more. So, the Federal Government should pay marketers their outstanding bridge claims before subsidy was removed.
“No payment, no petrol because marketers are broke. The interest rate is too high. Marketers are working for the banks. No one has invited us for reconciliations. They owe me personally close to N300 million. We’re suffering.”
The NOGASA President further urged the Nigerian National Petroleum Company (NNPC) Limited to immediately deliver products to marketers that were paid for long before the subsidy was removed.