The Depot and Petroleum Products Marketing Association on Sunday ordered its members to shut down services from 12 midnight.
The order to shut the depots was given by the DAPPMA Executive Secretary, Olufemi Adewole, on Sunday.
Adewole said the association’s efforts to make the Federal Government pay its N800 billion subsidy debts were not successful.
He said the association “took the bold step to stop the financial haemorrhage of its members by the painful disengagement of its loyal workforce after three years of engaging the Federal Government in its efforts to secure the payment of all subsidy induced debts owed marketers”.
He said efforts made till date have not yielded the desired results, hence the decision to shut down the depots.
He said the association duly notified the Federal Ministry of Finance, the Debt Management Office and the Presidency of its challenges in paying workers’ salaries beyond last month.
He added that the association pleaded with the Presidency, DMO and the ministry to no avail to pay the outstanding debts like subsidy, interest, forex differentials with summation calculated up to 31st of this month.
Adewole said as a result of the notice, the association was invited to meetings.
He said: “Further talks to which we are usually invited, which now seem to be their response to follow ups on these debts, never consented to our requests for full cash payment of these debts, hence the regrettable decision we have had to take to let go our loyal staff, who we have sustained through bank facilities at outrageous interest rates.
“Premised on our inability to pay December 2018 salaries and to avoid owing staff for work done without any hope of pay, it is hereby agreed that, since our staff have been disengaged, all DAPPMAN member Depots are not in a position to operate and hence will shut down all loading operations at midnight, Sunday December 9, 2018, until Federal Government pays our calculated claims: the remaining subsidy (to few members), forex differential interest incurred up to December 31, 2018.
“This decision is binding on all members of the association and full compliance is expected of every member company of the association. The association shall revert in the same vein with any other directives as might be deemed necessary.”