That scenario will be a reality if from tomorrow, Nigerian fuel importers carry out their threat to hut down jetties and depots if the government did not pay outstanding gasoline subsidy payments, which are a massive drain on Africa’s second biggest economy.
President Goodluck Jonathan tried to end fuel subsidies on January 1, prompting more than a week of strikes and protests after the petrol price more than doubled.
Jonathan ended the strikes by partially reinstating the subsidy.The Finance Ministry said on June 20 it had cleared all outstanding subsidy payments following a pause to carry out a probe into the fuel marketers. The ministry was not available for comment on Friday.
The minister of state for finance said in June Nigeria only had 370 billion naira left to pay subsidies, out of the 888 billion in the 2012 budget.The central bank has said the subsidy budget will run out well before the end of the year, which means they will need to raid savings to pay for it.
State governors have said they will take the federal government to court for what they call “illegal” over-budget subsidy payments.
The Jetty and Petroleum Tank Farm Owners of Nigeria (JEPTFON), representing fuel marketers, said government non-payment of fuel subsidies was a breach of contract.”Until the above demands are met, the association has no option than to shut down its operations nationwide and suspend workers with effect from July 23,” a JEPTFON statement said.
Culled from PM NEWS
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