FG’s fuel subsidy account empty

Barely Three weeks after the National Assembly gave its nod to the N161.6 billion supplementary budget to cater for last year’s fuel subsidy payment to marketers, reports are revealing that the account with the Central Bank of Nigeria is yet to get the back up of the Finance Minister.

Petroleum Marketers who went yesterday to the CBN, to get their regular subsidy funds, were shocked to hear that there was no money in the account, and had to leave pondering on various ways to raise funds.

A senior marketer who pleaded anonymity expressed fears of a possible hitch in the supply of fuel to filling stations, as it was disclosed that the marketers were issued sovereign debt notes from the Debt Management office, and were turned back by the CBN

Giving further details on the situation, He said “It is the Minister of Finance that normally tell the Accountant General of the Federation to fund the account; but as I speak to you, this has not been done. So we are still being owed.”

Sovereign Debt Notes are like Treasury Bills, a type of Government borrowing on behalf of the marketers to achieve the supply of petroleum products in the country, and this development could pose a threat to the possibility of starting the year with shortage in fuel supply.

Speaking on this development, the Director, Corporate Communications of the Central Bank of Nigeria,Mr Ugochukwu Okoroafor stressed that it was not the job description of the CBN to finance the subsidy payment, but rather that of the Federal Ministry of Finance.

It will be recalled that scarcity of the late 90s has returned to the country, since the festive season. This has affected transportation fares in cities like Abuja, Lagos, and Port Harcourt.

Source: Business News