TheNewsGuru

Tag: DAPMAN

  • Subsidy Removal: Oil Marketers Pledge N10 Billion Buses to Boost Mass Transportation

    Subsidy Removal: Oil Marketers Pledge N10 Billion Buses to Boost Mass Transportation

    The Depot and Petroleum Products Marketers Association of Nigeria (DAPMAN) has announced plans to donate Compressed Natural Gas (CNG) compliant buses worth N10 billion.

    Chairperson of DAPMAN, Winifred Akpani, revealed this during a briefing with State House Correspondents after leading a delegation to the State House for a courtesy visit with President Bola Tinubu on Wednesday.

    “We did pledge that we are going to work at providing real mass transit buses that work. The ones that will work on the compressed natural gas (CNG) and diesel interchangeably and hopefully we are going to start with about 50-100 and that is in a very short time,” she said.

    The donation comes against the backdrop of the recent removal of fuel subsidy, and it is intended to provide employment opportunities and support the government’s efforts to improve the country’s transportation infrastructure.

    The DAPMAN Chairperson emphasized: “These are locally produced vehicles, so we are also providing jobs by using local assembly plants. By not importing the buses, we are reducing pressure on our foreign exchange reserves and creating more jobs for Nigerians”.

    She also expressed President Tinubu’s satisfaction with the initiative and optimism that Nigerians would soon recognize the benefits of removing the subsidy on petrol, while urging citizens to support the President’s direction to propel the country forward.

    Confirming the details, Ogun State Governor, Dapo Abiodun, announced that each bus would cost N100 million and accommodate up to 50 passengers.

    Governor Abiodun dispelled notions that petroleum marketers opposed the deregulation of petrol, stating, “This singular step demonstrates their support for this administration’s laudable policy of deregulation.”

    He further called on other members of the organized private sector, such as the Bankers Committee, to emulate DAPMAN’s benevolent gesture and take additional measures to alleviate the impact of subsidy removal on Nigerians.

     

     

  • Subsidy debt: Depot owners suspend shutdown of operations, give 5-day grace

    The Depot and Petroleum Products Marketers Association (DAPPMA) has suspended its planned shutdown of depots across the country from loading petroleum products effective from 12-midnight on Sunday, Dec. 9.

    The suspension directive was conveyed in a statement issued by DAPPMA Executive Secretary, Mr Olufemi Adewole, at about 1.20 a.m. on Monday in Lagos and made available to the News Agency of Nigeria.

    Adewole said: “Recalls the association had issued a shut down directive to our members following the continuing indebtedness of the Federal Government to the petroleum marketers.

    “However, following the intervention of well meaning Nigerians including the National Assembly as represented by the Senate Committee of Petroleum Downstream and constructive engagement of the Federal Government team by the labour unions most affected by the disengagement of our personnel, namely, PENGASSAN, NUPENG NARTO, PTD,and DAPPMA.

    “The union has resolved to recall its disengaged personnel for five days to give the Federal Government’s team the opportunity to conclude its process of paying marketers the full outstanding of N800 billion with the first tranche being the amount already approved by the Federal Executive Council (FEC).

    “The association has acted in good faith to avoid unnecessary hardship which could befall Nigerians during the Yuletide season and we hope that government would make good its promise to see that those issues are resolved by Friday, Dec., 14, 2018 as promised.

    “To this end, our disengaged personnel would be recalled on Monday, Dec. 10, and considering the reactivation time or hitherto shut down system, all depots with fuel stock should be fully active same day,’’ he said.

    Adewole said that the conclusion of the debts payment would curtail the continuing wastage of public funds as interest accruing on the over N800 billion debt.

    “DAPPMA depots are, therefore, advised to commence loading operations immediately and await further notification in respect of our long overdue payment,” he said.

    On Sunday, at about 8.30 p.m., DAPPAMA had directed its members to shutdown all loading operations by midnight, adding that oil marketers had disengaged employees due to their inability to pay salaries.

    It said that the Association took a bold step to stop the financial hemorrhaging of its members by the painful disengagement of its loyal workers after over three years of engaging with the government in the efforts to secure the payment of all subsidy induced debt owed marketers.

    According to DAPPMA, to avoid owing staff without any hope of pay, it is hereby agreed that since all our staff have been disengaged, all DAPPMAN member depots are not in a position to operate hence will shut down all loading at midnight

    DAPPMA said that the decision of government claiming to settle N236 billion out of the outstanding N800 subsidy arrears was not acceptable to its members, leading to Thursday, Dec. 6, meeting which ended in a deadlock.

    The association explained that the decision of government to pay the N236 billion through promissory notes was equally rejected by the oil marketers.

    ‘‘As the name suggest, promissory note is a payment instrument that is post dated. Based on this, when you approach the banks with the instrument, you don’t get the actual value on it.

    “About 30 per cent is knocked off because government will be making the payment at a later date which ties down the bank’s capital,’’’ the association said.

     

  • Fuel crisis looms as marketers write Senate over N800b subsidy debts

    Fuel crisis looms as marketers write Senate over N800b subsidy debts

    As Nigeria nears the yuletide, the nation may suffer yet another fuel supply crisis as oil marketers have written Senate Committee on Petroleum Downstream over non-payment of subsidy arrears by the federal government.

    TheNewsGuru (TNG) reports the oil marketers had on Sunday in Lagos gave the FG a seven-day ultimatum to settle outstanding debts totaling N800 billion, failing which, depots would cease operation across the country.

    The marketers, comprising Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association (DAPPMA) and Independent Petroleum Products Importers (IPPIs), said failure to meet the deadline would force its members to disengage workers from depots.

    Senator Kabir Marafa, who read the oil marketers letter at Senate plenary session on Thursday, raised a motion on the urgent need to avert the looming crisis in fuel supply due to non-payment of the fuel subsidy arrears to the independent marketers.

    “The Committee on Petroleum Downstream received a letter from DAPMAN on the non-payment of subsidy arrears by the Federal Government. If the demands are not met, they will shut down in 7 days,” Senator Marafa said.

    In their contributions, Senators Yahaya Abdullahi, Barnabas Gemade and Ahmad Babba Kaita pleaded with leadership of the Senate to prevail to avert the looming fuel supply crisis.

    “I am a member of this particular Committee, we had a long meeting, we have gone through all the necessary procedures and offices. We have to make sure these funds are released so we can avert this strike,” Senator Abdullahi said.

    While Senator Gemade stated that “Withholding of these payments has nothing to do with the National Assembly, it is the executives that are responsible, the necessary ministries and agencies should pay DAPMAN so as to avert this crisis”, Senator Kaita said, “This motion is timely, it is a matter that affects our lives in it’s totality. Christmas is coming so this should be averted. This Senate should do anything humanly possible to stop this”.

    Confirming the seven-day notice, Mr Patrick Etim, Legal Adviser to IPPI had said banks have taken over investments and assets of oil marketers over the unpaid debts.

    According to Etim, marketers have no choice than to ask their workers to stay at home over unpaid salary arrears due to huge subsidy debts owed by the government.

    “The only way to salvage the situation is for government to pay the oil marketers the outstanding debts through cash option instead of promissory note being proposed.

    “As I speak, nothing has been done several months after assurances received by government saying it would pay off the outstanding debts.

    “The oil marketers have requested that forex differential and interest component of government’s indebtedness to marketers be calculated up to December 2018 and be paid within next seven days from the date of the letter sent to the government,” he said.

    Etim said that several thousand jobs were on the line in the industry, as oil marketers began cut-down of their workforce due to inability to pay salaries.

    “At the inception of the current administration, marketers engaged the government with the view to secure approval for all outstanding subsidy-induced debts handed over to the current administration,” he said.

    The counsel said that the current administration paid part of the debts with a substantial portion of the subsidy interest and foreign exchange differential still pending.

    The Executive Secretary of DAPPMA, Mr Olufemi Adewole, also confirmed the seven-day ultimatum notice.

    Adewole disclosed that the oil marketers on Nov. 28 served the ultimatum letter on the Debt Management Office (DMO), Minister of Finance, Chairman, Senate Committee on Petroleum Downstream, Department of State Services and Minister of State, Petroleum Resources.

    “We urge the DMO to process and pay marketers in cash for their outstanding forex differentials and interest component claims, together with the amount already approved by the Federal Executive Council (FEC) and the National Assembly.

    “Marketers are not in a position to discount payment on the subsidy-induced debt owed as proposed by DMO.

    “The expected payment is made up of bank loans, outstanding admin charges due to PPPRA, outstanding bridging fund due Petroleum Equalisation Fund (Management) Board and in a few cases AMCON judgment debts.

    “We urge that the Federal Executive Council (FEC) approved payment instrument, (the promissory note) be substituted with cash and paid through our bankers to stop the avoidable waste of public funds through these debts accruing interest,” he said.