Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Finance Ministry denies responsibility for looming fuel crisis

16 August 2012, 11:21

Abuja - The Federal Ministry of Finance on Wednesday denied allegations by oil marketers that the looming fuel supply crisis was due to its failure to reimburse subsidy claims of marketers.

Yerima Ngama, the Minister of State Finance, made the denial, while responding to questions from newsmen in Abuja during the monthly Federation Accounts Allocation Committee (FAAC) meeting.

He was reacting to allegations made by the marketers to the effect that the ministry was responsible for the looming fuel crisis.

Ngama who read a statement issued by the Ministry insisted that government had been meeting its obligations to oil marketers in respect of all legitimate claims.

``The claim by some marketers that they have embarked on strike because the Federal Government has failed to pay them for fuel imports is not accurate.  

``For instance between April and May 2012, batches D/12 and E/13 involving 14 oil marketers with a claim of 17 billion were fully settled through the issuance of sovereign debts notes and other relevant documentation.

``In addition since the directive by the coordinating minister to the Debt Management Office (DMO) to continue payments of all verified claims, N25.6 billion worth of claims has been fully settled with the issuance of sovereign debts notes.

``In all, between April and August 2012, in respect of PMS claims, Sovereign Debts Notes amounting to 42.66 billion have been issued to 31 oil marketers.''

The minister, however, said that the claims by marketers recommended for further investigation by the Aig-Imokhuede Presidential Committee had not been paid.

``Payments or sanctions to this category of marketers will be determined by the outcome of investigations.

``Against this background, it is clear that the strike was instigated mainly by marketers who were indicted by the Aig-Imokhuede Committee, which investigated fuel subsidy payments.

``Their obvious intention is to blackmail the Federal Government in order to escape the sanctions for the crimes they have committed. Nigerians should not be deceived by their antics.

Ngama warned that such tactics would not succeed because the Federal Government was determined to prosecute persons and organisation found culpable in the fuel subsidy regime payments.

``As we have communicated severally in the last few months, payments of marketers, whose claims have been verified will continue to go on in a consistent and structured way that protects the best interests of the country.

``All marketers, who have genuine issues to raise regarding their claims are encouraged to come forward for discussion or clarifications.''

Nigeria relies on importation to bridge the gap on inadequate local refining of petrol.

Under the subsidy regime, the Federal government invited private companies to participate in the Petroleum Support Fund (PSF) managed by the Petroleum Products Pricing Regulatory Agency (PPPRA).

Under the scheme, importers sell the petrol at a lower price to the consumers compared to the landing cost, after which the Federal government reimburses the differences to them.



Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...