Economy

FG Pledges to Pay Oil Marketers N236bn on Friday

Published

8 years ago

December 9, 2018

Eric

The Federal Government on Saturday declared that it would pay oil marketers N236bn next Friday.

It said the payment was the first tranche of the outstanding N348bn subsidy claims that it owed members of the Major Oil Marketers Association of Nigeria and the Depot and Petroleum Products Marketers Association.

The Chief Operating Officer, Downstream, Nigerian National Petroleum Corporation, Henry Ikem-Obih, disclosed this to journalists after a meeting with officials of petroleum product marketers in Abuja.

Ikem-Obih stated that the remaining portion of the claims would be paid in 2019.

He said, “We agreed that after the first tranche is paid, the marketers would form a committee to work on details of how the next tranche will be paid in 2019 and the last tranche in 2020.

“Government is fully committed to pay the first tranche as promised and will be paid through promissory note that would be issued by the Debt Management Office.”

Ikem-Obih said the Federal Government had insisted on making the payments through promissory notes, which was equivalent to cash and could be liquidated almost immediately.

He said the decision to pay through promissory notes was based on the need to manage cash injection into the economy, as he noted that injecting cash of such magnitude into the economy might affect the country negatively.

He said the government would fully pay the oil marketers and had directed that there would be no deductions from the marketers’ account to settle debts owed government.

“Some oil marketing companies, DAPPMA and MOMAN members are indebted to Federal Government agencies, like the Federal Inland Revenue Service. But the government has directed that the debts should not be deducted from the payments. This is because if we do, most of the marketers would be left without a dime,” he added.

On the disparity between the N800bn as claimed by the oil marketers and the N348bn that was approved by the National Assembly, Ikem-Obih said the debt position of all the marketers to the government was considered and agreed upon as of June 30, 2018.

This, he said, was presented to the National Assembly for approval, which after consideration of the debts, approved the sum of N348bn.

The Chief Executive Officer/Executive Officer, Major Oil Marketers Association of Nigeria, Mr Clement Isong, told one of our correspondents on Saturday that the government made some proposals at the meeting on Thursday on how to settle the outstanding debt and marketers requested some adjustments to the proposals by government.

He said, “We are expecting to hear from government on Monday, December 10, 2018.

“MOMAN had at no time issued an ultimatum or threat to stop operations or sales and will continue operations and sales to the public throughout the Christmas and end-of-year period while engagement with the government will continue in order to ensure that payment of what is due marketers is made as soon as possible to avoid the collapse of many stakeholders in the downstream petroleum sector.”

The NNPC also said on Saturday that discussions on the subsidy debt payment would be finalised on Monday.

The Chief Financial Officer, NNPC, Mr Isiaka Abdulrazaq, at a press briefing in Lagos, noted that an agreement was reached on Thursday that further engagement would take place on Monday around the details of what the interest rate on the promissory notes should be.

The Punch

Economy

World Bank Okays $1.25bn Loan for Nigeria, Unveils 6-Year Growth Strategy

Published

3 weeks ago

July 1, 2026

Eric

The World Bank has approved a $1.25 billion Development Policy Financing (DPF) loan for Nigeria as part of a new six-year partnership framework to accelerate private sector-led growth, create jobs, and support key economic reforms.

The approval, announced on Wednesday, falls under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme and is part of the World Bank’s Country Partnership Framework (CPF) for Nigeria, covering 2026 to 2032.

According to the bank, the financing will support reforms to improve competitiveness, deepen capital markets, modernise regulations for the digital economy, strengthen power sector reforms, expand agricultural productivity and enhance domestic revenue mobilisation. The programme also seeks to reduce trade barriers in line with Nigeria’s commitments under ECOWAS and the African Continental Free Trade Area.

The approval follows public debate over Nigeria’s rising debt profile, with some Nigerians questioning the country’s continued reliance on external borrowing and calling for greater transparency in the use of previous World Bank loans.

Beyond the financing, the World Bank said the new partnership framework aims to expand electricity access to 32 million Nigerians, provide broadband connectivity to 58 million people, improve health and nutrition services for 40 million citizens and support 9.5 million farmers through higher agricultural productivity.

World Bank Country Director for Nigeria, Mathew Verghis, said recent macroeconomic reforms had helped stabilise the economy but stressed that sustained improvements in living standards would depend on addressing structural constraints to private investment and job creation.

The World Bank Group added that its private sector arms, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), will support the strategy by mobilising private capital, expanding infrastructure investment and providing guarantees to reduce investment risks.

The new framework reflects the World Bank’s continued focus on supporting Nigeria’s economic reforms while encouraging greater private sector participation to drive long-term growth and reduce poverty.

Economy

Dangote Refinery Files Lawsuit Against FG, NNPC, Marketers over Petrol Import Licences

Published

2 months ago

May 18, 2026

Eric

Dangote Petroleum Refinery has filed a fresh lawsuit against the Nigerian National Petroleum Company Limited (NNPC) and several fuel marketers, seeking to overturn fuel import licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

According to court documents filed at the Federal High Court in Lagos and cited by Reuters, the refinery is asking the court to nullify import permits recently granted or renewed by the regulator, arguing that the approvals violate an earlier directive ordering all parties to maintain the status quo pending the determination of the case.

The legal action comes at a time when Nigeria is recording a sharp decline in petrol imports due to rising domestic refining capacity, largely driven by output from the Dangote Refinery.

In its filing, Dangote Refinery argued that Nigerian law permits fuel importation only when local production is unable to meet national demand. The company maintained that continued issuance of import licences undermines its operations as it ramps up production from its multi-billion-dollar refinery located on the outskirts of Lagos.

Fuel marketers, however, have consistently defended importation, insisting that imports remain necessary to guarantee a stable supply and prevent shortages across the country.

This is not the first dispute between Dangote Refinery and fuel importers. In 2025, the company filed a similar suit against NNPC Ltd and several marketers, including AYM Shafa Ltd, A.A. Rano Ltd, T. Time Petroleum Ltd, 2015 Petroleum Ltd and Matrix Petroleum Services Ltd, while also seeking ₦100 billion in damages. The suit was later withdrawn without explanation.

Recent industry data showed petrol imports dropped to 965.52 million litres in Q1 2026 from 2.43 billion litres in the same period of 2025. Meanwhile, supply from local refineries rose to 3.18 billion litres, accounting for about 76.7 percent of Nigeria’s petrol supply during the quarter.

Economy

World Bank Flags ‘Hidden Spending System’ Diverting N34.53trn of Nigeria’s Revenue

Published

3 months ago

April 19, 2026

Eric

The World Bank has raised concerns over Nigeria’s fiscal framework, revealing that more than N34.53 trillion was diverted from federation revenue over the past three years through pre-distribution deductions.

In its latest Nigeria Development Update obtained from its website, the global lender disclosed that although total federation revenue rose sharply to about N84 trillion between 2023 and 2025, about 41 per cent of the earnings did not reach the Federation Account for distribution to the federal, state and local governments.

According to the report, gross revenue increased from N17.08 trillion in 2023 to an estimated N37.44 trillion in 2025. However, deductions classified as “first-line charges” also rose significantly, from N6.22 trillion to nearly N15 trillion within the same period, reducing the pool of funds available for distribution.

The World Bank noted that the development has created a paradox in which rising revenues have not translated into improved public spending capacity, as a substantial portion is automatically retained by certain agencies before allocation.

It explained that reforms such as the removal of petrol subsidy and foreign exchange adjustments boosted nominal revenues, but much of the gains were offset by the structure of deductions tied to cost of collection and statutory transfers.

Agencies such as the Nigeria Customs Service, Nigerian National Petroleum Company Limited, and the Federal Inland Revenue Service account for a significant portion of these deductions. The report stated that their funding is based on fixed percentages of gross revenue, leading to higher allocations as revenues increase.

Describing the model as “pro-cyclical”, the Bretton Woods institution said it operates outside the conventional budgetary framework and weakens legislative oversight. In some cases, allocations to individual agencies exceed the revenues of several states and even the budgets of key federal ministries.

The report also highlighted the impact on public finances, noting a decline in capital expenditure from N5.5 trillion in 2024 to N4.5 trillion in 2025, with only about 25 per cent of the approved capital budget implemented. Meanwhile, the federal fiscal deficit remained elevated at N16.9 trillion, driven by debt servicing and recurrent expenditure.

The World Bank warned that the current arrangement undermines fiscal transparency and accountability, as significant portions of public revenue are spent outside the standard appropriation process.

Source: tribuneonline