Okonjo-Iweala Sets Agenda For Buhari's Administration

Ngozi Okonjo-Iweala, Nigeria’s finance minister, has called on the administration of the president-elect, Muhammadu Buhari, to tame urgently the oil cartel holding the nation to ransom.

Ngozi Okonjo Iweala

The minister made the appeal speaking on May 3, 2015 in Abuja, PM News reports.

Okonjo-Iweala refuted the claim by the oil marketers that the nation is owing them another N200.2bn, just after the government paid them N156bn. According to her, the outstanding amount is about N131bn billion.

The finance minister urged the marketers to be patriotic in their decisions by considering the interest of Nigerians, stressing that they should not by their actions hold the country to ransom.

It would be recalled, that the marketers had earlier claimed that the government’s indebtedness to them for oil subsidy was about N354,4bn.

Confirming the figure, Thomas Olawore, the executive secretary of Major Oil Marketers Association of Nigeria, had said:

“The government had paid N154.2bn out of N354.4bn and we are left with a balance of N200.2bn. What happens to the N200.2bn? That is why we requested that the government invite us so that we can be told how it intends to liquidate the remaining N200.2bn.”

The finance minister, in her turn, said this figure was incorrect, noting that the balance that is left based on Petroleum Pricing Products Regulatory Agency’s (PPPRA) template is about N131bn.

“As you know, we paid N156bn recently, N100bn of the principal payment that we owe them and then we paid N56bn interest rate and some remaining exchange rate differentials.

“Prior to that, we have just paid N31bn exchange rate differentials. So at the time we paid that last week, what we had outstanding is N98bn,” she said.

According to Okonjo-Iweala, every week the PPPRA sends data and that is what government only subscribes and certifies as what is due to marketers.

“As at now, since we made the announcement last week, it has now risen from N98bn to N131bn outstanding in principle payment. And they are now making a demand of N200bn and I asked them what is the balance for,” she added.

She likened the oil marketers to a small cartel that are into a no risk business based on template negotiated with PPPRA long time ago which factored in exchange rate differential, and profit margin guarantee. She noted that this situation leaves them with absolutely no risk.

“It has become a situation where we have a cartel that can ground the nation to a halt at will. I strongly suggest that the nation has to do something about it,” she stressed.



Meanwile, Okonjo-Iweala as well as Akinwumi Adesina, minister of agriculture, and others have been summoned by the House of Representatives over alleged N21billion rice importation tax evasion scam.

The ministers and 25 rice importers are expected to explain to the lawmakers how over N21bn tax was evaded despite the provision of subsidy by the Federal Government to the importers.