President
Goodluck Jonathan has been alerted by the Nigerian National Petroleum
Corporation (NNPC) to a looming acute fuel shortage, should the FG fail
to pay the N1.13trn subsidy owed to NNPC.
The Minister of
Petroleum Resources, Mrs. Diezani Alison-Madueke led a delegation who
reportedly made this known to Jonathan at a recent meeting. The
delegation included some top management staff and the group Managing
Director, Mr. Andrew Yakubu.
It was learnt that the team told the
President that the Minister of Finance, Mrs. Ngozi Okonjo-Iweala, had
failed to pay the debt, which has hinged its capacity to continue the
importation of fuel on the payment of the debt that had accumulated over
the months. The team advised that the president get the Minister of
Finance, Mrs. Ngozi Okonjo-Iweala to pay the debt to avoid serious fuel
shortage in the country.
The team further informed the president
that they fear that very soon fuel might disappear from filling stations
across the country if it continues this way.
They also informed
the President that they fear that the N971bn subsidy provision in the
2013 budget is seen as hideously insufficient.
According to a
source at the NNPC who spoke in confidence, when asked said, “Yes, we
have made a presentation to the President. We are waiting for his
response because it (payment of the subsidy claim) is very imperative
for our capacity to import fuel,”
The team resorted to requesting a meeting with the President when they could not get the Okonjo-Iweala pay the subsidy claim.
The
NNPC has remained the sole importer of fuel into the country since the
problem with importers began, the oil marketers refused to import fuel
since the government refused to pay for some of their claims.
The
Jetty and Petroleum Tank Farm owners as well as the oil marketers
operating under them have also faulted the N971bn budgeted for the
subsidy in the 2013 fiscal year, saying that the amount would not be
enough to supply the product over the stipulated period.
In a
phone interview, the Executive Secretary, JEPTFON, Mr. Enoch Kenawa, had
this to say, “It (N971bn) will not be adequate. What the government is
doing is putting Nigerians in double jeopardy. They said they are
subsidising fuel, yet people can’t see the products to buy and where
they have fuel, people still pay very high to get it.
“The N971bn
for fuel subsidy can never be adequate. At 35 million litres of fuel
consumption per day, the money can’t be enough.”
He said the
N971bn, was too small that the government should have been talking
N1.2trn and N1.5trn, with the population and demand ratio.
“If
they want to remove, let them remove it (subsidy) instead of what they
are doing right now. Based on the demand, the amount that would be
reasonable for fuel subsidy should be between N1.2trn and N1.5trn,”
Kenawa added.
He said the fuel scarcity experiencing in the
country now is because of the N888bn voted for subsidy this year, which
was grossly inadequate.
BusinessNews