The Depot and Petroleum Products Marketers Association of Nigeria, DAPPMA, on Sunday ordered its members to shut down operations at midnight of Sunday, until the Federal Government pays an outstanding debt of about N800b owed it.
DAPPMAN’s order is coming less than 24 hours after the Federal Government announced that it would pay N236bn to oil marketers this Friday as the first tranche of the outstanding subsidy claims that it owed members of the depot owners as well as those of the Major Oil Marketers Association of Nigeria.
Meanwhile, oil workers under the auspices of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG), have said they do not want to not want to do anything to overheat the polity.
A Punch report quoted the Executive Secretary, DAPPMAN, Olufemi Adewole, as saying they would not be swayed by the Federal Government’s offer since there was no firm “assurances of receiving the funds which would help pay December salaries.”
The report quoted Adewole thus: “As you are aware, the association reviewed the suspension of the ultimatum given to the Federal Government on December 25, 2017, which was suspended due to the intervention of well meaning Nigerians and the Federal Government’s promise to immediately pay marketers the outstanding subsidy- induced debts.
“Unfortunately as at today, and almost 12 months to the date, all we got so far are invitations to meetings and dialogues which have so far not stopped the daily increasing interest on these debts which are owed banks and agencies, and which, also has not manifested as credit to marketers.”
According to him, the association informed the government of its of financial constraints and the challenge of paying staff salaries beyond November 30, 2018, except its members received help via the payment of all outstanding debts which include subsidy, interest and foreign exchange differentials with summation calculated up to December 31, 2018.
“Further talks to which we are usually invited, which now seem to be their response to our follow ups on these debts, never consented to our requests for full cash payment of these debts, hence the regrettable decision we have had to take to let go of our loyal staff who we have sustained through bank facilities at outrageous interest rates.
“Premised on our inability pay December 2018 salaries and to avoid owing staff for work done without any hope of paying them, it is hereby agreed that, since our staff have been disengaged, all DAPPMAN member depots are not in a position to operate, hence will shut down operations at midnight, Sunday, December 9, 2018 until the Federal Government pays our calculated claims: the remaining subsidy (to few members), forex differentials and interest incurred up to December 31, 2018,” Adewole was also quoted as saying.
However, the leadership of oil workers on Sunday assured they have the interests of Nigerians at heart.
Addressing newsmen on Sunday after a meeting with officials of the Nigerian National Petroleum Corporation, NNPC, and its subsidiary, the Petroleum Products Marketing Company, PPMC, as well as Major Oil Marketers Association of Nigeria, MOMAN, and DAPPMA, PENGASSAN National President Francis Johnson, said the association intervening in the crisis to protect the interest of its members as well as that of the country.
“PENGASSAN, as one of the major stakeholders in the oil and gas industry, is concerned. We are also looking at it that the year is coming to an end; they are also talking about 2019 politics and elections. We do not want to do anything to overheat the polity and make Nigerians go through a lot of stress.
“For us, we have said and we are aware that there have been series of meeting to resolve the issue. We stand by that and we appeal to both government and the oil marketers to look at the larger interest of Nigeria and do what is needful for Nigeria to grow from strength to strength.
“I believe in the commitment and sincerity of both parties to reach an amicable solution to the issue. I believe that both parties would allow the larger interest of Nigeria to supersede. I advise them to fast-track every process to resolve this issue and make sure they keep to the terms of agreement reached,” Johnson said.
He noted that if not resolved amicably, the subsidy debt issue might lead to the sack of its members by the oil marketers.
Johnson, however, cautioned members of PENGASSAN against joining any strike action not called by the leadership of the unions.
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In his own comments, NUPENG National President William Akporeha also assured Nigerians of unhindered distribution of petroleum products during the Yuletide, saying his members would not embark on any strike.
He words: “This regime of NUPENG believes in dialogue. Until we are pushed to the wall, we do not take strike as the first option. So far, between now and December ending, I can assure Nigerians that there won’t be shortage of petroleum products in our streets.”
PTD National Chairman Salimon Oladiti on his part said they were trying to mediate in the crisis as they have gotten assurances from the Federal Government that between now and Friday, December 14, 2018, part of the money owed the oil marketers – about 50 per cent of the money – would be paid to them.
“We do not want to issue threats, but we are losing our members; because if these marketers carry out their threats, we are going to be seriously affected.”
Meanwhile, the PPMC Managing Director Umar Ajiya, however, warned that the Federal Government would not tolerate any attempt by any individual or group to disrupt the distribution of petroleum products during the Yuletide.
He stated that such actions would be seen as economic sabotage.