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Oil firm asks reps panel to help recover ‘N30bn subsidy debt’ from FG

Oil firm asks reps panel to help recover ‘N30bn subsidy debt’ from FG
August 10
21:36 2022

A-Z Petroleum Products Limited has asked the house of representatives to help recoup the N30 billion subsidy debt owed by the federal government. 

Hafford Udochukwu, head of business development of the company, said this on Wednesday when he appeared before the ad hoc committee investigating the quantity of petrol consumed in the country.

Udochukwu said the company supplied 245.89 million litres of premium motor spirit (PMS) in 2015, 26.27 million litres in 2017 and 26.64 million litres in 2018.

He said the debt affected the company’s operations, forcing it to suspend trading PMS.

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“We have not been paid since 2017, and because of that, we stopped trading in PMS. We are being owed over N30 billion by the government for subsidy differentials, and because of that, we have stopped trading,” he said.

“We have not been trading on PMS, we are kind of handicapped. Severally, we have written to the ministry. They have paid others, but we have not been paid. In fact, we went to court two months ago.

“We are asking the committee to prevail on the ministry of finance so that they can pay us the outstanding.”

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Udochukwu said it has been “difficult” for the company to sustain its employees due to the debt.

While pledging to intervene in the matter, Abdulkadir Abdullahi, chairman of the committee, demanded that the company provide the necessary documents to facilitate the process.

Petrol subsidy has been a subject of controversy in recent times.

In January, the federal government postponed the planned petrol subsidy removal for 18 months, citing “high inflation and economic hardship”.

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In the first five months, Nigeria has spent N1.27 trillion on petrol subsidy — with a plan to spend N4 trillion this year.

It has also projected to spend N6.7 trillion on petrol subsidy payments next year.

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