Oil and gas suppliers urge FG to pay outstanding claims

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has called on the federal government to immediately pay up billions of naira it owes marketers for bridging costs that accumulated before the removal of subsidy. NOGASA President, Benedict Korie, in a media briefing yesterday said the amount been owed the marketers is crippling their […]

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has called on the federal government to immediately pay up billions of naira it owes marketers for bridging costs that accumulated before the removal of subsidy.

NOGASA President, Benedict Korie, in a media briefing yesterday said the amount been owed the marketers is crippling their cash flow and could impact the continuous supply of the product.

According to him, the removal of subsidy has thrown up new challenges as marketers now need huge funds to import.

He said the cost of importation has tripled, adding that securing bank loans come with a scathing interest of 30%, saying it was akin to economic suicide.

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He said: “Before now, we had the PEF that took care of bridge claims but now, it’s no more. So, the Federal government should pay marketers their outstanding bridge claims before subsidy was removed.

“No payment, no petrol because marketers are broke. Interest rate is too high. Marketers are working for the banks. No one has invited us for reconciliations. They owe me personally close to N300 million. We’re suffering.”

He also urged the NNPCL to immediately deliver products to marketers that were paid for long before subsidy was removed.