Forte Oil Plc, a major oil marketer, has indicated that banks may start to pass on subsidy risks to the marketers if the federal government continues to delay payment of subsidy, Vanguard reports.

The Group Chief Executive Officer, Forte Oil Plc, Mr. Akin Akinfemiwa, noted that “With the release of the third quarter, Q3 import permit, there is potentially no deregulation in the short term, no subsidy payments yet and banks may start to pass on the subsidy risks to the marketers.”

He stated that the performance of the downstream sector for 2015 has so far been hampered by the non payment of outstanding subsidies owed to marketers; insufficient supply of foreign exchange; devaluation of the naira, resulting in reduced purchasing power; industrial actions by trade unions during the period under review; no clear policies on economic matters, deregulation of the downstream petroleum sector and the Central Bank of Nigeria (CBN)’s cash tightening policies resulting in tight liquidity and huge interest rates.

 

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