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FG, major oil marketers agree on supply of petroleum products from Monday

By BusinessNews Staff on September 8, 2012

The Federal Government of Nigeria and major oil marketers on Friday reached an agreement to ensure full supplies of products would be guaranteed in the market as from Monday next week.

This assurance was given by the marketers in Abuja at the end of their meeting with the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, and the Mr. Aigboje Aig-Imoukuede-led Presidential Committee on fuel subsidy claims.

While advising consumers against panic buying since there are enough products’ stock to meet demands, the marketers expressed confidence and support for the verification exercise undertaken by the Federal Government, emphasizing that the exercise was imperative to avoid the unpleasant circumstances in future.

Addressing journalists at the end of the meeting in Abuja, the Managing Director of Folawiyo Energy, Mr. Dipo Makanjuola, said the audit of subsidy claims was necessary and that the marketers were on the same page with the Federal Government team on the matter of verification.

“There is a verification exercise that is on-going by a firm of Auditors and we expect that it will be concluded by the end of next week. Subsequently, payments will be made. Basically the amounts that we have that are all outstanding, we have agreed. We are basically on the same page,” he said.

“So we hope that subsequently, we can move from there and continue to support government in this regards. We would like to assure Nigerians that there is no need for panic buying. There is adequate products in the country”, Makanjuola said.

He regretted that the impression that the nation was running short of petroleum products was due to inadequate information, which unscrupulous persons took advantage of to create panic, adding that “unfortunately, in situations like this, people tend to peddle with information, so to speak. But it is not real. And I am sure in the next few days the situation would be normal around the country.”

Similarly, the Chief Executive Officer of Oando Plc, Yomi Awobokun, confirmed that the auditors had finished work in his company and that the audit conducted by Presidential was necessary in the interests of all genuine marketers and Nigerian public.

“The auditors were in our company last week. We were clear about their mandate. Against the backdrop of what has transpired in the industry, we fully support the requirement to ensure that there is a thorough exercise and there adequate understanding in clear terms before subsidy payments are made,” he said.

“The process is on-going. It is a necessary process that the industry needs and I am sure that Nigerians will be happy when that process is concluded. The minister has also given us the comfort that the government is not broke, like it has been written in a lot of papers but indeed to ensure that only companies that supplied fuel that money is given to and we appreciate that”, Awobokun said.

According to him, the marketers are prepared to ensure that the exercise is thorough and completed and are doing everything they could do to ensure that distribution continues.

“We will continue to distribute the products. The NNPC has agreed to support us. As I speak to you, there is a lot of oil in Apapa. Right now, the NNPC has ensured that there are three cargoes in Apapa, discharging, to ensure that there is fuel in all parts of the country. And I expect that the efforts will continue”, the Oando boss said.

Earlier in her remarks, Dr. Okonjo-Iweala said that the parties had agreed to work together for a transparent process in the subsidy administration and that the marketers gave assurance of their commitment to ensure adequate products supply across the country.

She disclosed that President Goodluck Jonathan insisted on the dialogue between government and the marketers as a means of guaranteeing uninterrupted supply chain in downstream sub-sector of the economy.

Those who attended the meeting were the Finance Minister, Dr. (Mrs.) Ngozi Okonjo-Iweala; the Chairman of the Claims verification Committee, Mr. Aigboje Aig-Imoukuede; Chief Executives of Total Oil Plc; Oando Plc; Folawiyo Energy and NIPCO among others.

Source: Worldstage

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