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Yesterday, Oil marketers came out to give three conditions for continued supply and distribution of petroleum products, as shortages crept in once again with fuel queues noticeable in some parts of Abuja, Lagos and other cities nationwide. The conditions are that Federal Government pay outstanding subsidy claims by month end, intervene for the Central Bank of Nigeria, CBN, to release foreign exchange to marketers and intervene with commercial banks to grant credit lines to marketers.

It was gathered the conditions were part of the agreements reached yesterday at a crucial meeting in Abuja, with the management of Nigerian National Petroleum Corporation, NNPC. According to a reliable source, “NNPC simply told the public their own side of the story, without reflecting our own concerns. “We (marketers: majors, independents and depot operators) met with NNPC management, and we made it clear to the Group Managing Director, Dr. Ibe Kachikwu that nobody has money to import anymore. “We agreed that marketers will continue to do their best to ensure that products are available, but there is little we can do without money to bring in the products.”

When reminded that supply had been relatively stable in the last four months, the source said supply came mainly from NNPC. The source said: “The refineries are bringing in something, NNPC is also importing, while marketers are bringing in only very little because of financial difficulties.” He insisted that the resurgence of queues less than 24 hours after the agreements to ensure products availability was not sabotage, saying that it was only a matter of time before supplies tightened since marketers were hardly importing.

Another source, who attended the meeting, hinted that “Kachikwu promised that government will pay us, at least, 50 percent of the outstanding subsidy claims by the end of the month, or before the end of the second week in December.” He said that marketers’ problems were compounded by the new CBN foreign exchange transaction policy. According to him, “there are no bank facilities because credit lines are not being raised for marketers. But that is not the worse; right now, even those paying in Naira component for previous import cannot get dollar to pay their foreign suppliers.

 “Imagine a situation where you have to pay about $18 million for 33,000 metric tonnes. Where will the money come from? CBN said no dollar cash payment except by wired transfer, and we have written many times to CBN, PPPRA, DPR without results. Also, when you bring in your product, Nigerian Ports Authority, NPA, and Nigerian Maritime Administration and Safety Agency, NIMASA, issues you certificate, which you use in processing your claims. But these transactions are all paid for in dollars, so we are stuck.”

He also disclosed that the prolonged situation had attracted some consequences as “some of our members have started laying off staff, thus compounding the already bad unemployment situation. “Those who are not laying off have started defaulting in salaries.” Against this backdrop, he urged government to act urgently before the situation got worse.