Marketers yesterday spoke of financial constraints, begging the Federal Government to pay them N800billion spent on fuel import. The cash also covers interest on bank loans.

The marketers , which are owing banks over $1.2 billion, appealed to Acting President Yemi Osinbajo for “urgent intervention”.

In a communiqué after their meeting in Lagos, signed by their legal adviser, Mr. Patrick Etim, the marketers, including the Depot and Petroleum Products Marketers Association (DAPPMA), said Osinbajo met with them on May 22, with Minister of Finance Kemi Adeosun, Minister of State for Petroleum Resources Ibe Kachikwu and Central Bank Governor Godwin Emefiele in attendance. The meeting was on how to pay the debt.
After the meeting, Osinbajo, the marketers said, directed the Minister of Finance to resolve the problem.The communique reads: “This debt has greatly impeded our ability to operate, our operating funds have been eroded, curtailed our ability to access funds from the financial institutions and some of our members have resorted to staff retrenchment due to inactivity, the marketers said. Besides, our worst fear is that AMCON at some point may take over our firms as a result of this debt. It is for these reasons and other challenges facing the downstream petroleum subsector that we seek government’s intervention to approve immediate payment of the debt.
“The foreign exchange differentials, which arose as a result of the initial devaluation of the naira by the last administration from the initial N165/S$1 and the interest payable due to delayed reimbursement by the government, both of which the Federal Government had approved for payment to marketers, have not been fully settled by the appropriate Federal Government agencies.
“The recent further devaluation of the naira from N195 to N285 and later to over N305 to S$1, while the Federal Government agencies based their reimbursement calculation on N197 to S$1, has left members our association with additional debt burden in excess of N300billion. The downstream subsector is now saddled with a debt burden of over N400billion, which keeps rising because the banks are still charging interests on it until the total debt is fully liquidated.
“As a result of the unpaid interest and foreign exchange differentials, we are becoming insolvent and financially handicapped to continue operating profitably. Commercial banks, the original and actual owners of these funds are already hard hit by our inability to return these funds within the ‘contract tenure of 45 days’ and have, in line with the Central Bank of Nigeria’s guidelines, ‘classified’ marketers’ accounts in all the banks in the federation. In addition, properties provided by marketers as securities for these funds are in the process of being auctioned including some storage facilities such as tank farms.
“We have indeed made several spirited efforts to get the government agencies involved to pay up fully, adhering to the principle of ‘full restitution’ to all participants in the then premium motor spirit (PMS) import scheme but the major challenge on the economy has impeded complete success hence we are making a direct appeal to Acting President to intervene.”
According to the communiqué, the marketers are unable to pay because their bank debts form part of what they too are being owed by the government. Their inability to pay or service the loans, they said, was hindering their business and threatening the affected banks’ operation and the financial industry.“Government’s debt, which arose from arrears of unpaid imported petrol supplied to the country as a result of the contract the Federal Government entered with marketers mandating them to import and supply petrol to the market on the condition that it (government) shall pay the difference between the landing cost and the selling price of petrol (as fixed by government) provided that the landing cost is higher than the selling price.
“The government approved the landing cost which fluctuated as it depended mainly on the international price of petrol and the exchange rate of naira/dollar. A key term of the government’s contract with marketers is that the under-recovery payments shall be paid to marketers within 45days of submission of documents evidencing discharge of petrol cargo and trucking out from storage. It was also agreed that after 45 days the government shall pay the interest charges on the loans taken by the marketers to finance the importation of cargoes of petrol.
“The problem of the banks is compounded by the fact that they provided billions of dollars to finance the importation of cargoes of petrol. They opened Letters of Credit at approximated exchange rate of N197/$1.00. Petrol was supplied and sold by marketers at the then prevailing government approved pump price and the repayment was calculated using the above exchange rate. ”As at 2016, the banks have not liquidated the Letters of Credit from 2014 because of lack of foreign exchange from the government.
“The outstanding matured Letters of Credit are currently over $1.2billion. Because many Nigerian banks were involved in raising this fund, the entire Nigerian banking system is at risk on account of these transactions,” they added, noting that the debt prevents banks from providing loans to them for future petrol imports and even to players in other sectors of the economy,” the marketers said.
They said the banks were in quandary over the debt. “ Besides, should the banking sector collapse, it will cost the government over N2trillion to revive it. But there is little evidence that the government sees the risks in further delaying the payments under the subsidy scheme.
more at http://www.akelicious.com/2017/06/marketers-beg-fg-to-clear-n800b-debt.html

”As at 2016, the banks have not liquidated the Letters of Credit from 2014 because of lack of foreign exchange from the government.

Rather than searching for a shade to properly chew the cud, some illiterate unicellular brain ruminants will come here and start bleating upandan.

LionDeLeo:


Rather than searching for a shade to properly chew the cud, some illiterate unicellular brain ruminants will come here and start bleating upandan.

It is obvious and very clear u failed English comprehension in skool . So as dumb as u are all u saw was jus d date? Let me give u a couple of clues on understanding d passage instead of taking a morons shortcut to being a zombie..
Here are d major talking points

“The foreign exchange differentials, which arose as a result of the initial devaluation of the naira by the last administration from the initial N165/S$1 and the interest payable due to delayed reimbursement by the government, both of which the Federal Government had approved for payment to marketers, have not been fully settled by the appropriate Federal Government agencies.
“The recent further devaluation of the naira from N195 to N285 and later to over N305 to S$1, while the Federal Government agencies based their reimbursement calculation on N197 to S$1, has left members our association with additional debt burden in excess of N300billion. The downstream subsector is now saddled with a debt burden of over N400billion, which keeps rising because the banks are still charging interests on it until the total debt is fully liquidated.

Dis govt contributed 300billion to d over 400billion debt in 2yrs.

“Government’s debt, which arose from arrears of unpaid imported petrol supplied to the country as a result of the contract the Federal Government entered with marketers mandating them to import and supply petrol to the market on the condition that it (government) shall pay the difference between the landing cost and the selling price of petrol (as fixed by government) provided that the landing cost is higher than the selling price.
“The government approved the landing cost which fluctuated as it depended mainly on the international price of petrol and the exchange rate of naira/dollar. A key term of the government’s contract with marketers is that the under-recovery payments shall be paid to marketers within 45days of submission of documents evidencing discharge of petrol cargo and trucking out from storage. It was also agreed that after 45 days the government shall pay the interest charges on the loans taken by the marketers to finance the importation of cargoes of petrol.

Dis govt still pays for some form of subsidy despite claiming otherwise

”As at 2016, the banks have not liquidated the Letters of Credit from 2014 because of lack of foreign exchange from the government.

U were so dumb u only saw d date becos it fits perfectly into d timeline of d previous administration excuse but u forgot to read d full sentence.. As at 2016 d govt is still yet to clear dat of 2014 BECAUSE OF LACK OF FOREIGN EXCHANGE FROM D GOVT.. Dis govt haven't paid any so far hence their over 300billion debt contribution.

Dis section is even VERY CLEAR

They said the banks were in quandary over the debt. “ Besides, should the banking sector collapse, it will cost the government over N2trillion to revive it. But there is little evidence that the government sees the risks in further delaying the payments under the subsidy scheme

IF AND WHEN D BANKING SECTOR COLLAPSES, DEY WON'T REMEMBER HOW DEY LET IT HAPPEN BUT WOULD AS USUAL PLAY THEIR USUAL LINE OF BLAMING THE PAST ADMINISTRATION

GET UR HEAD OUT OF UR ASS AND RECEIVE SENSE....

Lalasticalala coman and see wetin pass snake ooo

Nbote:



It is obvious and very clear u failed English comprehension in skool . So as dumb as u are all u saw was jus d date? Let me give u a couple of clues on understanding d passage instead of taking a morons shortcut to being a zombie..
Here are d major talking points




Dis govt contributed 300billion to d over 400billion debt in 2yrs.





Dis govt still pays for some form of subsidy despite claiming otherwise




U were so dumb u only saw d date becos it fits perfectly into d timeline of d previous administration excuse but u forgot to read d full sentence.. As at 2016 d govt is still yet to clear dat of 2014 BECAUSE OF LACK OF FOREIGN EXCHANGE FROM D GOVT.. Dis govt haven't paid any so far hence their over 300billion debt contribution.

GET UR HEAD OUT OF UR ASS AND RECEIVE SENSE....

As predicted, the illiterates have started arriving.

So much for an illiterate talking about dumbness and comprehension.

Get the fvck outta my mention.

LionDeLeo:


Rather than searching for a shade to properly chew the cud, some illiterate unicellular brain ruminants will come here and start bleating upandan.

Gbamest. Jonathan eh you had the largest economy but still couldn't pay your debts ....

Nbote:



It is obvious and very clear u failed English comprehension in skool . So as dumb as u are all u saw was jus d date? Let me give u a couple of clues on understanding d passage instead of taking a morons shortcut to being a zombie..
Here are d major talking points




Dis govt contributed 300billion to d over 400billion debt in 2yrs.





Dis govt still pays for some form of subsidy despite claiming otherwise




U were so dumb u only saw d date becos it fits perfectly into d timeline of d previous administration excuse but u forgot to read d full sentence.. As at 2016 d govt is still yet to clear dat of 2014 BECAUSE OF LACK OF FOREIGN EXCHANGE FROM D GOVT.. Dis govt haven't paid any so far hence their over 300billion debt contribution.

GET UR HEAD OUT OF UR ASS AND RECEIVE SENSE....

Why didn't your lord of thieves pay the debts since he claimed to have made Nigeria one of the largest economies in the world. You people lack shame when it comes to defending corruption.

[s]

LionDeLeo:


As predicted, the illiterates have started arriving.

So much for an illiterate talking about dumbness and comprehension.

Get the fvck outta my mention.

[/s]
shatap there and get out
stop forming holy Holy on top of nothing

nonsense trash

[s]

LionDeLeo:


Rather than searching for a shade to properly chew the cud, some illiterate unicellular brain ruminants will come here and start bleating upandan.

[/s]
better than those that do fraud in India and USA

LionDeLeo:


As predicted, the illiterates have started arriving.

So much for an illiterate talking about dumbness and comprehension.

Get the fvck outta my mention.

vedaxcool:


Gbamest. Jonathan eh you had the largest economy but still couldn't pay your debts ....

vedaxcool:


Why didn't your lord of thieves pay the debts since he claimed to have made Nigeria one of the largest economies in the world. You people lack shame when it comes to defending corruption.

It is now obvious sense departed u guys long ago.. Ur nemesis GEJ left govt in 2015 and didn't pay 2014 bill of 100 billion but ur saviour PMB came in and in 2yrs and counting has accumulated about 300billion and yet GEJ is still ur problem?? Una case worst pass dementia

[s]

Nbote:


It is now obvious sense departed u guys long ago.. Ur nemesis GEJ left govt in 2015 and didn't pay 2014 bill of 100 billion but ur saviour PMB came in and in 2yrs and counting has accumulated about 300billion and yet GEJ is still ur problem?? Una case worst pass dementia

[/s]

Chio bros e better make person work hard so imm fit lemm than to dey wait make TMC crumbs hit imm table. . . GEJ took all the money while claiming to you he made Nigeria the biggest economy in Africa but couldn't pay his bills but instead accumulating debts with little funds to pay it off.

vedaxcool:
[s][/s]

Chio bros e better make person work hard so imm fit lemm than to dey wait make TMC crumbs hit imm table. . . GEJ took all the money while claiming to you he made Nigeria the biggest economy in Africa but couldn't pay his bills but instead accumulating debts with little funds to pay it off.

I dey tell you oh!

A one-time best economy in the world left a debt of N100bn for the succeeding administration despite the huge resources at its disposal and the illiterate is a having a jack-up over it.

How more delusional can one be?

[s]

LionDeLeo:


I dey tell you oh!

A one-time best economy in the world left a debt of N100bn for the succeeding administration despite the huge resources at its disposal and the illiterate is a having a jack-up over it.

How more delusional can one be?

[/s]
Shatap there and get out
what do you know

Thunder fire Jonathan,... But,
Amadioha +sango +Zeus fire buhari more.

And if anyone of u disagree thunder fire u too.







It means each one of us is owing 22million naira.


Like I said thunder fire Jonathan, more thunder on buhari... And all u mumu supporters.

vedaxcool:
[s][/s]

Chio bros e better make person work hard so imm fit lemm than to dey wait make TMC crumbs hit imm table. . . GEJ took all the money while claiming to you he made Nigeria the biggest economy in Africa but couldn't pay his bills but instead accumulating debts with little funds to pay it off.

Una Chief Zombie is stylishly singing a new tune under d guise of "Patriot" but ur own case dey God hand...