Proshare Logo
   Market Date: 30-01-2015   
Agriculture ARTS FINANCE All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Elections Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted OTC MARKET World of Business

Subsidy Facts & Our Stand Oil Marketers Association

Category: Oil Sector

  Read (3494)
Subsidy Facts & Our Stand  Oil Marketers Association

Wednesday, January 18, 2012 / Paid Advertorial in ThisDay now reproduced on Proshare

Major Oil Marketers Association of Nigeria .
Address: Eleganza Biro Plaza (5th Floor), Plot 634 Adeyemo Alakija Street , Victoria Island, Lagos . Website:,

Conoil, Forte Oil, Mobil, MRS, Oando and Total. 


1. 90% of petrol consumed in Nigeria is imported due to inadequate and limited local production.

2.  This importation is carried out by Nigerian National Petroleum Corporation (NNPC), Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association (DAPPMA), and other independent marketers under permits issued by Petroleum Products Pricing Regulatory Agency (PPPRA).

3. The PPPRA has a 26 member Board which inter alia includes the Central Bank of Nigeria (CBN), Federal Ministry of Finance (FMF), Nigeria Employers Consultative Association (NECA), Nigeria Labour Congress (NLC), Trade Union Congress (TUC), Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), National Union of Petroleum and National Gas Workers (NUPENG), National Association of Road Transport Owners (NARTO), National Union of Road Transport Workers (NURTW), Nigerian Guild of Editors, National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), MOMAN, DAPPMA, Independent Petroleum Marketers Association of Nigeria (IPMAN), amongst others.

4.  The PPRA pricing template was established by its Board and was utilised to calculate on a daily basis the landed price of regulated products. This formed the basis of subsidy claims made by Participants under the Petroleum Support Fund (PSF) (

5. The PSF is funded by the Federation of Nigeria, administered by the PPPRA and supervised by the Ministry of Finance.

6. The difference between the higher cost of imported PMS as ascertained by PPPRA and the then lower regulated pump price of N65 per litre was the subsidy that was repaid to importers after being subjected to an audit by Government appointed auditors. For example, as at 6 Dec 2011, the total cost PMS imported product is as detailed below;                       



7.  ANY MEMBER OF THE PUBLIC WHO BOUGHT PETROL OR USED PETROL BOUGHT AT N65 PER LITRE (NOW 97 PER LITRE) BENEFITED FROM THE PSF AND WAS A BENEFICIARY OF SUBSIDY. Our members who participated in the Subsidy Fund were merely claimants who were entitled to reimbursement of cost incurred in the importation and delivery of petrol into Nigeria . Claiming subsidy under the PSF for reimbursement is neither an unwholesome act nor is it illegal.


8. At inception, participating under the PSF was limited to marketing companies that owned storage of minimum 5,000 metric tons and a network of petrol stations/retail outlets. The PSF was to be funded by contribution of the three tiers of government during times of under recovery and by funds contributed by the participating marketing companies during periods of over recovery. For the scheme to work, only bona fide companies with meaningful and identifiable assets in the downstream could be held accountable. Unfortunately, a change in the guidelines of the PSF in particular Part V, in 2007, allowed companies with nothing more than a throughput agreement to operate under PSF, this saw the emergence of ‘briefcase’ companies (with no asset base nor accountability) in the PSF scheme.


9.   MOMAN members who have extensive storage and distribution capacity have invested massively in retail distribution infrastructure and assets nationwide, ensuring adequate petroleum products supply to all parts of the Federation and gainful employment for thousands of Nigerians.



MOMAN has always been a proponent of the total deregulation of the downstream sector and viewed the Subsidy Scheme as an intermediate measure. As responsible entities, we hold efficient utilisation of national and corporate resources very dearly.

We welcome any inquiry or investigation into our activities under the PSF which will no doubt establish utmost good faith on the part of our members. FURTHERMORE, MOMAN COMMITS TO PARTICIPATING IN THE PSF ONLY ON THE BASIS OF TOTAL TRANSPERENCY AND ACCOUNTABILITY.

MOMAN is a law abiding body and remains committed to supporting the Nigerian People and the Federal Government in ensuring that petroleum products are made available nationwide.


Thomas Olawore
Executive Secretary
Major Oil Marketers Association of Nigeria .
Conoil, Forte Oil, Mobil, MRS, Oando and Total. 


Tags: , 

Comment With Your Facebook or Yahoo! ID

Latest news

News on Oil Sector

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Contact Us
Volunteer Program
Message from CEO

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Discussion Forum

Subscriber Agreement
Privacy Policy
Data Policy
Copyright Policy
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Legal Support Services
Web/Technology Services
File a Complaint

CBN Governor 2014