The Nigerian Senate has approved subsidy payments of N348.003 billion to oil marketing and trading companies who were owed by the federal government. The subsidy claims were made during the past administration and the issue had been dragged back and forth for the past two years.
According to Kabir Marafa, chairman of the committee on downstream petroleum sector at the senate, a promisory note programme and bond issuance will be used to settle inherited local debts and contractual obligations to the 74 petroleum marketers.
The oil marketers and the amount verified and approved against their names include Folawiyo Energy – N7.56 billion; Mobil – N8.28 billion; Total – N21.56 billion; Techno Oil – N10.19 billion; MRS Oil and Gas – N20.94 billion; Northwest Petroleum – N17.24 billion; Rainoil Limited – N12.71 billion; Obat Oil – N2.90 billion and Integrated Oil – N6.53 billion.
Those with contentious claims and the amount include: Conoil – N5.58 billion; Forte Oil – Plc N15.48 billion; Oando Plc – N14.97 billion; Swift Oil – N6.13 billion; Blacklight – N7.25 billion; IPMAN Investment – N1.22 billion and Tempopgate Oil – N2.12 billion.
A breakdown of the 74 companies revealed that 55 oil marketers are to be paid verified figures against their names, while 19 others with contentious claims are to be paid 65 per cent of their claims, pending further investigation.