Fuel Subsidy: Senate Approves Payment Of N348bn to 74 Oil Marketing Companies

The Senate has on Wednesday, July 18, 2018, approved the payment of N348.003bn to 74 Oil Marketing Companies, OMCs,  as outstanding fuel subsidy owed them by the federal government as at June 30, 2017.

The approval is after the presentation at plenary of a 14-page interim report of the Committee on Downstream Petroleum Sector by the Chairman, Senator Kabir Marafa, on promisory note programme and a bond issuance to settle inherited local debts and contractual obligations to petroleum marketers.fuel subsidy

The oil marketers and the amount verified and approved against their names include Folawiyo Energy N7.56bn; Mobil N8.28bn; Total N21.56bn, Techno Oil N10.19bn;  Mrs. Oil and Gas N20.94bn; Northwest Petroleum N17.24bn; Rain Oil Ltd N12.71bn; Obat Oil N2.90bn and Integrated Oil N6.53bn.

Those with contentious claims and their approval include Conoil N5.58bn; Forte Oil Plc N15.48bn; Oando Plc N14.97bn; Swift Oil N6.13bn; Blacklight N7.25bn; IPMAN Investment N1.22bn and Tempopgate Oil N2.12bn.

The payment, according to Senate, will be through promisory note programme and bond issuance to settle inherited local debts and contractual obligations to the  74 oil marketing companies.

A breakdown of the 74 OMCs shows that 55 oil marketers are to be paid verified figures against their names, while 19 others with contentious claims are to be paid 65 percent of their claims pending further investigation.

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