Subsidy Claims: Marketers Finance Ministry, Disagree

In a swift reaction to claims by Oil Marketers and Trading Companies (OM &TC) that the Sovereign Debt Notes(SDNs)given to them as reimbursement for petroleum products imported are not backed by cash, the Federal Ministry of Finance has said it paid about N338.24billion as at August 22, 2012.

The ministry disclosed that N259.34billion was paid the OM&TCs as subsidy arrears for 2011, while about N78.9billion have been paid for 2012 verified claims.

Some of the marketers have, however, insisted that the SNDs remain invalid and as such importation of products have been impossible as banks are not willing to finance the importation of new cargo based on this.

They further speculated that this could lead to scarcity in the long run.

Meanwhile, reports have revealed that the three arms of government earned a total of N71.10 billion from the increase in fuel pump price in January between April and June 2012.

The Federal Government reportedly got N32.59 billion, state governments N16.53 billion and local governments got N12.74 billion, while N9.24 billion went to the 13 percent Derivation fund.

Also the CBN reported that the Nigerian National Petroleum Corporation(NNPC) refunded N15.22 billion to the federation account, which was shared by the sub-national governments and 13 percent Derivation Fund as follows: state governments, N7.48 billion; local governments, N5.76 billion, and 13 percent Derivation Fund, N1.98 billion.