FG Approves N108 Billion to Offset Outstanding Subsidy Payments

The federal government has set aside an extra N108 billion to completely offset subsidy payments to oil marketers for the year 2015.

Executive secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA), Farouk Ahmed, who disclosed this in Abuja while announcing the new pump price of petrol, said the money is meant to clear payment for the month of October, November and December, 2015.

Recall that government recently paid an outstanding N407 billion subsidy claims to oil marketers which covered payments up to September, 2015. Minister of Finance, Kemi Adeosun, said the payments included arrears from the 2014 financial year as well as payments for 2015.

Meanwhile Ahmed said the PPPRA has completed verification of marketer’s documents for the months of October and November, which would be sent to the Debt Management Office (DMO) before finally being handled by the ministry of finance.

He said, “For October, November and December, PPPRA has been verifying subsidy claims, the verification only commences when the marketers bring in their documentation. So we have been able to verify October and November and we are going to send everything to the DMO for payment.

“Already there has been a budget for that because we have appropriated about N108 billion for these three months, but I can tsell you that the figure is way below that. It has come down because of the drop in the price. So that will be processed to DMO and then the ministry of finance will handle that,” Ahmed said.

He further maintained that marketers will not have problems with payment of subsidy arrears for 2015 because the federal government is up to date with the payment.