Senate Okays N348bn Subsidy Payment to Capital Oil, Others

The Senate Wednesday approved the payment of N348 billion as outstanding subsidy claims to Capital Oil, Oando, Total, Honey Well, Conoil, A.A. Rano, Folawiyo, Eternal and other petroleum marketers.

The total number of marketers the Senate gave nod to were 74 petroleum marketers, just as this is to enable them update all outstanding liabilities and clear all debts, interest accrued and forex differential once and for all.

The Senate noted that continuous delay of the approval of the promissory note request will affect the liquidity of the Oil Marketing Companies and undermine their crucial role in the development of the economy.

According to the Senate, of the said amount, 55 oil marketers are to receive N275,750,415,108 while 19 others will get N73,452,639,866.

Resolutions of the Senate were sequel to the adoption of the interim report of the Committee on Petroleum Downstream on the Promissory Note Programme and a Bond Issuance to Settle Inherited Local Debts and Contractual Obligations to Petroleum Marketers.

The Committee in the report presented by its Chairman, Senator Kabiru Marafa, APC, Zamfara Central however recommended that the 55 oil marketers be paid 100 percent of their claims.

Culled from Vanguard.