Dr. Bukola Saraki, Senate President
The Senate has approved the payment of N68.9 billion as outstanding subsidy claims to 20 petroleum marketers across the country.
Breakdown of the amount shows that while the Senate approved the payment of N10.8 billion as subsidy claim to Tanzila Petroleum Company, it okayed another N58.1 billion for 19 oil marketing companies.
Some of the oil marketers are: Conoil, Oando, A&E Petroleum, Matrix Energy, Ontario Oil & Gas Limited, Swift Oil Limited and Honeywell (HOGL).
Oil downstream companies that also benefitted in the subsidy claims are: Blacklight, Fatgbems Petroleum, Forte Oil, Frado International, Tempogate Oil, Linc Nigeria Limited, IPMAN Investment, Hudson Petroleum among others.
The approval followed the adoption of the report of its committee on petroleum downstream on the promissory note programme and a bond issuance to settle inherited local debts and contractual obligations to petroleum marketers.
Presenting the report, Chairman of the Senate Committee Petroleum Downstream, Kabiru Marafa, observed that there were differences in submissions made by the Federal Ministry of Finance, Petroleum Products Pricing Regulatory Agency (PPPRA) and oil marketers.
He attributed the discrepancies to the use of different input parameters for the calculation of the subsidy payable value.
The report of the panel stated thus: “The differing calculation processes which couldn’t define the step used to arrive at the total subsidy due value, for instance, it could not be determined if simple or compound interest method was adopted in the computation or the interest was computed on the forex differential element amongst others. The internal inconsistencies which do not follow the set processing parameters by the government agencies.”
Some of the oil marketers and the amount approved for them include: Ontario Oil & Gas Limited N9.8billion, Conoil N8.3billion, Oando N4.9billion, Matrix N4.6 billion, Honeywell (HOGL) N4.3 billion and Swift Oil Limited N4 billion.
Others are: Forte Oil PLC N3.8 billion, Blacklight N3.7 billion, Stallionaire N3 billion, Tempogate Oil N2.3 billion among others.
Approval from the outgoing 8th Senate, will put to rest lingering issues bothering subsidy payment which marketers had complained caused a set-back on their businesses leading to huge debt.