₦airaland Forum

Depot and Petroleum Products Marketers Association (DAPPMA) on Sunday said the unpaid subsidy arrears of over N650 billion by the federal government posed huge financial challenges to the downstream operations.

DAPPMA Executive Secretary, Olufemi Adewole, told the News Agency of Nigeria (NAN) in Lagos that the settlement of the debts owed them would save their assets from being taken over by banks.

Mr Adewole said the downstream segment of Nigeria’s petroleum industry was fast becoming unattractive to lending institutions owing to rising debt profiles of its players on account of unpaid subsidy arrears by government.

“This is posing a huge financial challenge to oil marketers and threatening business survival,” he said.

He said over 60 per cent of marketers had been forced out of business as banks had taken over their assets (depots and other investments) due to their inability to pay back funds borrowed.

According to him, aside marketers that have been forced out of business, others are struggling to survive due to the government’s inability to settle the subsidy arrears.

The development, he said, had been threatening investment in the downstream sector.

The DAPPMA scribe said although the federal government had made an arrangement to clear the debts, payment had not been received by marketers.

He said: “It has had very adverse effects on our operations. I am aware of four depots that have been forcibly taken over by banks because they got injunctions from the courts.

“They did so the moment they heard that the National Assembly had approved payment to marketers. Unfortunately, as at today, the money has yet to get into our accounts.

“Some marketers had to lay off more than 90 per cent of their staff because of financial challenges.’’

Mr Adewole, however, said government had promised that part of the money would come as promissory note and cash.

According to him, the information gathered is that government may pay only in promissory note.

“It means you have to go back and discount this promissory note in the bank. This means we are losing because the money has been delayed and this adds up the interest to be charged on our accounts.

“Really, what was approved to be paid is not the actual amount the government owes us.

“The interest came about as a result of devaluation of the naira from N197 to N285 to a dollar,” he explained.

It would be recalled that the Chairman of the Major Oil Marketers Association of Nigeria (MOMAN), Andrew Gbodume, had on October 18, said that over N130. 7 billion was owed to the association as unpaid subsidy arrears.

Mr Gbodume said that the unpaid debts was posing serious financial challenges to the downstream sector coupled with its inability to attract more funds from banks which had yet to get back their loans.

“With the fast eroding goodwill of the sector and inaction of government to effect payment of ‘cleared’ subsidy arrears, most downstream players are currently experiencing contraction of operations occasioned by reduced capacity.

“We appreciate the efforts of the National Assembly, but the non-payment creates a significantly negative impact on the operational efficiency of the downstream sector of the oil industry.

Mr Gbodume added: “We can’t pay salaries and staff reviews in terms of emoluments cannot be done because of this sum owed us.”

He said the current business model in the downstream sector was unworkable and unsustainable, adding that the future system of product supply needed to be

https://sunrisebulletin.com/over-n650-billion-unpaid-subsidy-backlog-by-fg-is-affecting-our-operations-marketers/

Sunrisebulletin.com can confirm that Twelve governorship aspirants on the platform of the African Democratic Congress, ADC, have approached a federal high court in Abuja, the country’s capital, over what they described as imposition of Sen. Olufemi Lanlehin as the party’s candidate for the 2019 governorship election in Oyo state.

checks revealed that the petition with suit no FHC/ABJ/CS/1145/2018, the aspirants- Festus Adegoke, Nurein Adeniran, Ayodele Adigun, Yunus Akintunde, Sharafa Alli, Taofeek Arapaja, Kola Balogun, Lowo Obisesan, Remi Olaniyan, Oluseye Opatoki and Remi Oseni, asked the court, among other things, declare the selection of Senator Olufemi Lanlehin null and void.

Also joined along with Lanleyin as defendants are the Independent National Electoral Commission, the ADC, the party’s national chairman- Chief Ralph Nwosu, its chairman in Oyo State, Dr Hammed Ayinla, its national legal adviser, Chief Peter Oyewole, Chiefs Rashidi Ladoja, Michael Koleosho, Olayiwola Olakojo and Dr Busari Adebisi.

Source: https://sunrisebulletin.com/fresh-crises-engulfs-oyo-adc-as-12-guber-aspirants-heads-to-court-over-lanlehin-emergence/

It will be recalled that the 12 aspirants through an advertorial in some national newspapers today insisted that the emergence of Senator Lanlenhin is illegal an will not be accepted by them.

To further demonstrate its commitment to the continued existence of the Ladoke Akintola University of Technology (LAUTECH), Ogbomoso, the Osun State government has fulfilled its promise to release the sum of Five Hundred Million Naira (N500,000,000:00), to the University. This was contained in a media statement signed by Lekan Fadeyi the school’s Head Public and alumni relations and made available to Sunrisebulletin.com.
The said some promised last week by the Governor, Ogbeni Rauf Adesoji Aregbesola, hit the Institution’s account on Friday.

Governor Aregbesola had while receiving members of the Governing Council and Vice-Chancellor of LAUTECH, Professor Adeniyi Gbadegesin, last Saturday, explained that State Osun was committed to the welfare of staff and students of the Institution.
He told the visitors that on no occasion had Osun wanted to shy away from its responsibility to LAUTECH.

Adding that his government was proud of the various giant strides of the University, the Governor appealed to staff and students to continue with the good works aimed at sustaining its present position in the committee of tertiary institutions, focusing on the fact that all would be well soon.
Responding, the Vice-Chancellor, Professor Gbadegesin, said he was glad that the State of Osun as again shown its commitment as a part owner to LAUTECH.
He thanked the Governor and people of the State of Osun, appealing that they further demonstrate love to the University and its workers, through adequate funding.

Source:http://sunrisebulletin.com/osun-state-government-releases-n500-million-to-lautech/

Unity Forum set to Join Action Democratic party ADP.

Sunrisebulletin.com can exclusively report that barring any last minute change of plans the break away faction of the ruling All Progressive Congress in Oyo state which recently joined the Africa Democratic Congress, may have decided to exit the ADC for Action Democratic party, ADP. the decision was reached at a meeting held Tuesday in the home of one of its leaders.

According to a source who doesn’t want his name mentioned told sunrisbulletin.com that the decision was taken consequent upon the the fallout from a meeting held at the Presidential library of former President Olusegun Obasanjo Monday, which did not yield any positives. Speaking further our very reliable source noted that the said meeting was basically between representatives of the fueding factions in the party.
The source informed us that President Olusegun Obasanjo was not present at the meeting, he only appeared briefly to remind participants that he will not like to get involved in political matters as he has reduced his role to been father of all, he thereafter wished them a peaceful deliberations and hoped they will find a common ground for peace to reign after which he excused himself.

Our source said further that the outcome of the deliberations in Abeokuta angered most members of the Unity form , who were told that though the Senator Rashidi Ladoja and Chief Michael Koleosho, faction will be willing to conceed the chairmanship position of the the party to Unity forum, but with a caveat that the Forum most present someone from Oke Ogun as chairman. This most leaders in the unity forum found insulting and an attempt by the Ladoja and Koleosho faction to derail basic Democratic tenets.

At well attended meeting Monday in Ibadan where the outcome of the Abeokuta meeting was discussed, another source told Sunrisebulletin.com that members of the unity forum from Oke Ogun, joined their counterpart from other region to reject the decision arrived at in Abeokuta, stressing that the Unity forum is very formidable, of the 10 local governments areas in the region only one is yet to fully join the Unity Forum, similarly the forum is also well represented in Ibadan, Ogbomoso, Oyo and Ibarapa.

And as such will not allow themselves to be treated like baby politicians, other members of the forum we spoke to remarked that they are grassroot politicians and have seen through the deception of Senator Ladoja and Koleosho faction to play members of the unity forum members against each other.
Some members also expressed disappoint in Mr. Ralph Nwosu, national Chairman of ADC, and Dr Majekodumi who was the caretaker chairman that oversaw the controversial state congress, both of whom have been accused of not taken decisive action on the side of truth.
It will be recalled that trouble started in ADC Oyo chapter, when a faction led by a former governor of the state Senator Rashidi Ladoja and an ex Secretary to the state government chief Michael Koleosho organised a state congress excluding members of the unity forum.
Efforts to get reaction from the Senator Ladoja and Chief Koleosho group were unsuccessful, as at the time of filing this report.

Source: http://sunrisebulletin.com/unity-forum-set-to-join-action-democratic-party-adp/