Senate approves N348b subsidy payment to 74 oil marketers

Senate approves N348b subsidy payment to 74 oil marketers: The Senate has approved the payment of N348 billion as outstanding subsidy claims to 74 petroleum marketers.

Some of the Oil Marketing Companies (OMC) are, Oando, Total, Honey Well, Capital Oil, Conoil, A.A. Rano, Folawiyo and Eternal oil.

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Others are, Aiteo, Forte Oil, Bovas, Mobil, MRS Oil and Gas among others.

The Senate said the payment is to enable them update all outstanding liabilities and clear all debts, interest accrued and forex differential once and for all.

Senate approves N348b subsidy payment to 74 oil marketers
Senate approves N348b subsidy payment to 74 oil marketers

The approval was sequel to the adoption of the interim report of the Committee on Petroleum Downstream on the Promissory Note Programme and a Bond Issuance to Settle Inherited Local Debts and Contractual Obligations to Petroleum Marketers.

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A promissory note is a debt instrument which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time, under specific terms.

President Muhammadu Buhari had in March written to the National Assembly, seeking its approval for the issuance of promissory notes to offset inherited local debts.

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The Senate eventually resolved to set up an ad-hoc committee to look into the promissory note and bond issuance programme and advice the Senate appropriately.

(PREMIUM TIMES)

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