Failure to pay petroleum marketers has increased debt from N429b to N1t – Senate

The Senate on Thursday asked the Federal Government to pay petroleum marketers their outstanding on subsidy debt.
The Senate position was sequel to a motion sponsored by Senator Kabiru Marafa.
According to Marafa, the continuous delay in the payment of the subsidy arrears have increased the debt from N429 billion to close to N1 trillion between June 2017 to date and will continue to increase due to bank interest charges and forex.
He recalled that the subsidy debt had been in existence as far back as 2006, a development that forced President Muhammadu Buhari to ask the National Assembly for approval of “the establishment of a promissory note programme and a bond issuance to settle inherited local debt and contractual obligation, of which the subsidy arrears falls”.
He noted that the debt have forced some marketers out of market, while most of the marketers are currently subjected to Mareva injunctions.
He also recalled that the National Assembly processed and passed the President’s request on July 24, 2018, which was forwarded to the Ministry of Finance for payment.
Marafa observed that after the passage of the Executive request by the National Assembly, the Debt Management Office introduced very stringent measures for the issuance of the promissory note.
The requirement for the payment, according to Marafa, are documents review by an international accounting firm, bonds to be issued in phases on the basis of discount with 10 years duration that is not interest bearing without a fixed date for issuance and a reverse auction for the issuance of the notes.
Other lawmakers who spoke supported the motion sponsored by Senator Marafa.
The Senate however urged marketers to rescind their seven days ultimatum decision to allow the Federal Government a little more time to look into their demands.