N130.7bn subsidy debt still hanging despite Senate’s approval …MOMAN calls on FG to clear outstanding debt

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 N130.7bn subsidy debt still hanging despite Senate’s approval

.MOMAN calls on FG to clear outstanding debt

 By Udeme Clement

 

Executive Secretary of MOMAN:

Facts emerged that the huge outstanding debt of over N130.7billion subsidy money the Federal Government is owing Major Oil Marketers doing business in Nigeria is still hanging, even as investments in the oil sector are declining by the day, due mainly to non-payment of this debt.

Financial Business inquest revealed that though the Senate has since July approved the payment of N130.7billion outstanding debt to Major Oil Marketers, the money is yet to be paid.

Financial Business  also observed that the huge debt over-hang is really taking its toll on energy sector, as Major Oil Marketers are currently suffering severe cash crunch and unable to make new investments.

The economic implications of non-payment of this outstanding debt are enormous. Aside from stagnating growth of the energy sector, as shown in oil sector contribution to Gross Domestic Product, GDP, there is also negative multiplier effect on the banking industry, since the money was borrowed from different commercial banks in the country.

In a chat with the Executive Secretary, Major Oil Marketers Association of Nigeria, MOMAN, Mr. Clement Isong, he appealed to government to pay the debt for investments to thrive in the sector, for greater economic growth and development.

Executive Secretary of MOMAN:
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