Depot and Petroleum Products Marketers Association (DAPPMA) have said the unpaid subsidy arrears of over N650 billion by the Federal Government posed huge financial challenges to the downstream operations.
DAPPMA Executive Secretary, Olufemi Adewole, told Newsmen in Lagos that the settlement of the debts owed them would save their assets from being taken over by banks.
Adewole said the downstream segment of Nigeria’s petroleum industry was fast becoming unattractive to lending institutions owing to rising debt profiles of its players on account of unpaid subsidy arrears by government.
He said that 60 per cent of marketers had been forced out of business as banks had taken over their assets (depots and other investments) due to their inability to pay back funds borrowed.
According to him, aside marketers that have been forced out of business, others are struggling to survive due to the government’s inability to settle the subsidy arrears.