The Federal Government has paid N940.2 billion to clear backlog of subsidy debts to oil marketers and others.
A document from the Debt Management Office (DMO) sighted by New Telegraph on Sunday showed that the payment made in Promissory Notes had pushed Nigeria’s total debt stock to N33.107 trillion or $87.239 billion as at March 31, 2021.
The debts stocks comprise of federal, states and the Federal Capital Territory (FCT). “The Promissory Notes are in the sum of N940.220 billion, which have been issued to settle the inherited subsidy debts to oil marketing companies, exporters and local contractors as well as arrears of the FGN to state governments,” the document read.
The companies, checks by this newspaper showed, are members of Major Oil Marketers Association of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), Depots and Petroleum Marketer Association of Nigeria (DAPPMAN) among others.
Meanwhile, MOMAN has given real reasons petrol consumption skyrocketed to 72.72 million liters daily in the country. MOMAN, in a statement it earlier made available to newsmen, maintained that the consumption skyrocketed from 57.44 million litres sold a month earlier, exposing the thriving activities of smugglers in the nation’s petroleum industry.
The Nigerian National Petroleum Corporation (NNPC) is yet to make any official data of petrol consumption available in the country. An official of the corporation has said that a forensic audit of fuel consumption was being carried out, adding that what could be available are truck-out data.
Though MOMAN did not ascertain the source of its data, the group said: “Prior to the regime of President Muhammadu Buhari, Nigeria’s petrol consumption was estimated at between 35 million to 40 million litres daily, less than six years after, the country’s average daily consumption have skyrocketed to over 72.72 million liters per day from 57.44 million litres sold a month earlier, exposing the thriving activities of smugglers in the nation’s petroleum industry.”
States along Nigeria’s land borders are, according to the group, consuming more refined petroleum products, especially Premium Motor Spirit (PMS), compared to some states with higher economic activities or higher Internally Generated Revenue (IGR), a development that questions the country’s effort in curbing petrol smuggling to neighbouring countries.
Globally, Energy consumption most especially petrol is an important indicator of the level of economic activities or the degree of internally generated revenue in any country.
“However in Nigeria, states comparison showed some border states consume more litres of petrol than other states with higher economic activities or bigger IGR.
“For instance, Ogun state, a state with a relative lower IGR of N50.7 billion in 2020, which also shares border state with Benin Republic, consumes more petrol of 2.5 million litres compared to River state, which consumes an average of 2.2 million, despite boasting of a higher IGR of N117.1 billion,” MOMAN said.