The Nationwide {Economic} Council (NEC) has endorsed President Bola Tinubu’s approval for the settlement of ₦185 billion excellent obligations owed to fuel producers, adopting a royalty-deduction association to clear the long-standing money owed and enhance home fuel provide.
At its 154th assembly held nearly on Wednesday and chaired by vp, Kashim Shettima, NEC obtained a briefing from the Minister of Petroleum (Gasoline), Ekperikpe Ekpo, on the fee and availability of home fuel, together with the {financial} liabilities collected from fuel provided to the facility sector through the years.
In accordance with the minister, fuel producers have cumulative debt claims of about $1 billion for fuel provided to the facility sector relationship again to 2011. Out of this, ₦185 billion—representing 78 per cent of the full naira-denominated claims—has been validated by means of submissions from NNPC Gasoline Advertising Ltd (NGML) and the Nigerian Electrical energy Regulatory Fee (NERC).
The variance includes extra claims by NEPL towards its GenCo clients and unreported claims by Shell, Seplat Power and NUIMS towards NGML.
Council was knowledgeable that President Tinubu, on April 4, 2024, had granted approval for the pressing settlement of the validated ₦185 billion by means of future oil and fuel royalty deductions.
The Nigerian Upstream Petroleum Regulatory Fee (NUPRC) has since engaged the six fuel producers concerned and agreed on a royalty-deduction schedule to impact the cost.
Following the presentation, NEC counseled the initiative, noting that clearing the debt was very important to supporting elevated fuel manufacturing and guaranteeing satisfactory provide for home use.
Council then authorised the committee’s suggestions, together with its concurrence with the President’s directive for the cost of the ₦185 billion to fuel producers to stabilise and enhance home fuel supply.
