Thursday, July 28, 2011

Nigeria: National Airlines Owe U.S. N5 Billion -Oil Marketers

Lagos — The Major Oil Marketers Association of Nigeria (MOMAN) has explained that the reason why it decided to stop supplying aviation fuel to Nigerian airlines was the huge debt running to N5 billion.

National chairman of the association, Wale Tinubu, said yesterday at a media parley in Lagos that his members could not continue to operate a debt regime in the face of their mounting overhead cost.

Tinubu, who said there is no scarcity of aviation fuel in the country, debunked the allegation of sharp practices levelled against marketers by airline operators.

He confirmed that few airline operators that have shown financial commitment have been supplied fuel by his members.

Airline operators had in recent times blamed marketers for deliberately hoarding the product with a view to hiking its price.

They said the development caused them to increase airfare.

Tinubu, who is also the Chief Executive Officer and Managing Director of Oando Plc, spoke on plans by his company to capture the nation's energy mix through investment.

He said in the next 10 years, Oando's investment portfolio and diversification would spread across the shores of the country.

He said in the next 26 months, his company would commit the sum of $500 million dollar into gas projects in the country while also thinking of subsidizing the cost of Liquefied Petroleum Gas (LPG).

He also said the company intends to increase its LPG plants from 7 to 15 before last quarter of this year.

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