3 Years After 'Subsidy Removal', Senate Approves N348BN Subsidy Payment
Subsidy on fuel was removed upon resumption of office of President Muhammadu Buhari in 2015.
But sometime in 2017, when fuel scarcity hit the nation, it came to light that the country had been paying fuel subsidy all along but calling by another name.
On top of that, the government had been owing some fuel importers subsidy claims.
But the Senate on Wednesday approved the payment of the subsidy claims totaling 348 billion naira to oil marketing companies.
The approval was made at the plenary on Wednesday following the adoption of the interim report by the Senate Committee on Petroleum (Downstream) on ‘Promissory Note Programme and Bond Issuance to Settle Inherited Local Debts and Contractual Obligations to Petroleum Marketers’.
While approving that 55 oil marketers be paid verified figures totaling N275,750,415,108, the Senate asked that 19 marketers with contentious claims and verified figures be paid 65% of their claims, amounting to N73,452,639,866.
Some of the notable marketers to get full payment are Aiteo, Bovas, Capital Oil, Eternal, Folawiyo Energy, Hyden, Integrated Oil, Mobil Oil Nigeria, MRS, NIPCO, NNPC Retail, Obat Oil, Sahara Energy and Total Nigeria.