Importing Petroleum Products Into Nigeria Part 1
Importing Petroleum Products into Nigeria is a very lucrative business. And as you know every lucrative business as it's own challenges. Our three major refineries aren't working and we need fuels to power our engines. We export crude oil and we import refined products into the country, it's very sad i tell you. The Government wants to privatize our refineries but oil workers wouldn't let it so we are stalk with the option of importing refined products into the country for now. So it's very lucrative but basically you need a Permit from DPR to Import Oil Into Nigeria. So the part one of importing Petroleum products into Nigeria is about obtaining a license/permit first and Part two will talk about where to buy from, How to get a good vessel e.t.c If you do not have a Tank Farm you can sign a through Put agreement with a Tank farm owner to cover that aspect.
GUIDELINES FOR THE IMPORTATION OF PETROLEUM
PRODUCTS INTO NIGERIA
These guidelines are made pursuant to the provisions of the Petroleum
(Amendment) Decree No. 37 of 1977, and are intended to facilitate the
DEREGULATION of the Petroleum Products sector as enunciated by the Federal
Government of Nigeria
A. ELIGIBILITY
The following categories of companies may apply for PERMIT to import
Petroleum products.
(i) Pipelines and Products Marketing Company (PPMC) Ltd
(ii) Major Petroleum Products Marketing Companies
(iii) Independent Petroleum Marketing Companies (IPMAN Companies) with
current licensed receptacles/Storage facilities (i.e. Jetties/Depots)
(iv) Independent Petroleum Marketing Companies (DAPPMA) Companies)
with current licensed receptacle/Storage facilities (i.e jetties/depots).
B CONDITIONS FOR IMPORTATION OF PETROLEUM PRODUCTS
(I) Application for import Permit which must be made on company's letter
headed paper and on DPR's prescribed form shall be forwarded to the
Director, Department of Petroleum Resources (DPR), 7, Kofo Abayomi
Street, Victoria Island, Lagos
(ii) All applications must be accompanied with;
(a) A copy of the Certificate of Incorporation of the applicant's
company.
(b) A copy of the company Article and Memorandum of Association
(original to be sighted by DPR)
(c) A Copy of the current Storage/Sales licence issued by the DPR.
(d) A Bank reference with committed and explicit statements
(e) 3-Years Tax Clearance Certificate
(f) An application fee of Seventy five Thousands Naira (N75,000.00)
only shall be charged per 30,000MT of each product . All fees shall
be in Bank Drafts and made payable to the Federal Government
of Nigeria (DPR FEES Account). Bank Drafts written “FGN” shall
not be honoured. A DPR service charge of Fifty Thousands Naira
(N50,000.00) only per application shall also be charged and made
payable to the Department of Petroleum Resources.
(iii) Every import Permit shall have duration of 90 days from the date of issue.
2
(iv) Each importer of petroleum products shall be required to submit returns on
the previous importation for which permit was granted, along with copies
of all relevant invoices and shipping documents, before any subsequent
application for an Import Permit can be approved.
Such documents shall include:-
a) Relevant Invoices
b) Bill of Lading
c) Photocopy of Approved Form “M”
d) Clearance or Import duty payment from Nigeria Customs &
Excise
e) Import Clearance Form duly certified by DPR representative
at the jetty.
f) Detail cargo information, such as direct shipment, ship to
ship, name of mother vessel, certificate of quality, last port
of call e.t.c
g) A copy of the “Certificate of Quantity” and “Certificate of
Quality” of previous imported and delivered products duely
authenticated by DPR (to be made available (for renewal of
import permit).
h) Evidence of utilization of the quantity of products for which
import permit was previously granted.
(v) For every new application for a permit, the permit granted to a company
for a previous importation must be surrendered to the Department of
Petroleum Resources.
(vi) All imported Petroleum products must meet the acceptable International
Standard quality specifications as approved by the Department of
Petroleum Resources.
(vii) At least 7 days prior to the arrival of the imported cargo at a Nigerian Port,
the importer shall ensure that the Certificate of Quality of the
consignment issued by the exporting refinery or a competent authority in
the country of origin is submitted to the DPR.
C. FACILITIES INSPECTION AND CERTIFICATION
All facilities for the storage of imported petroleum products must be
inspected by the DPR prior to licensing. The facilities must meet the
specification for the storage of class 'A' petroleum products (Gasoline and
Kerosene) and class 'B' petroleum products (AGO). All permanently
placed bulk storage tanks containing class 'A' petroleum products shall be
installed within a bundwall capable of containing the contents of the
largest of the storage tanks plus ten per cent of the capacity of the
3
remaining tanks and where there is only one tank, the bundwall shall be
capable of containing the content of the tank. In addition such tanks shall:
(i) Be fitted with access doors sufficiently large to enable easy access
and vents capable of relieving any excess pressure or vacuum.
(ii) Have access to the roofs by means of a ladder or staircase of a
type approved by the Director, Petroleum Resources and all
floating roof tanks shall have adequate wind girders.
(iii) Have provision for containing any leakage to prevent oil
contaminating the water when located above water.
(iv) Be provided with efficient electrical resistance not exceeding ten
ohms when measured by an earth resistance tester of the “Mega”
or similar type.
(v) Facilities must conform to all safety and environmental standards
for receiving and storing petroleum products.
(vi) All bulk storage facilities/receptacles (depots) must be equipped
with a well furnished quality control laboratory.
D. CONDITIONS FOR CARGO DISCHARGE AT THE JETTIES
A vessel laden with imported petroleum products shall only be allowed to
discharge where:
i. There is an evidence of import permit used in importing the product.
ii. The imported product has been fiscalised in the presence of a DPR
official and “Certificate of Quantity” issued.
iii. A re-certification analysis of the product composite sample is
conducted in the presence of a DPR official and the result certified
on- spec. A vessel shall therefore not discharge until the laboratory
recertification of a product is conducted.
iv. The importing company complies with the one week mandatory
submission of the “Certificate of Quality”, bill of lading and other
relevant documents in respect of the imported products.
v. Documents received from the vessel are not in conflict with those
submitted by the importer of the product.
March 2007
DEPARTMENT OF PETROLEUM RESOURCES
4
OTHER ISSUES FOR PETROLEUM PRODUCTS IMPORTATION
I. Import Permit document shall henceforth carry a Security Seal
II. All imports should now be tied to a specific import permit until the total
quantity applied for in the import has been utilized. Therefore, Permit
holders are henceforth mandated to make a formal report on the utilization
or non-utilization of permit within the three months.
III. All importers of Petroleum Products must provide detailed account of all
volume of product imported and corresponding monetary value so as to
cross-check product quantity requisition and utilization compliance.
IV. The Department of Petroleum Resources should make it mandatory for
the CBN to always demand for the “Certificate of Quantity” as a
prerequisite for granting subsequent allocation of foreign exchange. The
CBN currently relies on this document while processing foreign exchange,
however, the bank does not follow same for other importers of petroleum
products.
V. On the import permit application form, the DPR should provide a portion
for certifying the official stamp of the importer on the document.
VI. All applicant companies should state their proposed sources of foreign
exchange in their applications.
VII. All imported products must carry “Certificate of Quantity” duly
authenticated by DPR
VIII. Article of Association shall now be compulsory
5
DEPARTMENT OF PETROLEUM RESOURCES
APPLICATION FOR PETROLEUM PRODUCTS IMPORT PERMIT
1. NAME OF APPLICANT………………………………………………………………………………
2. REGISTERED ADDRESS IN NIGERIA……………………………………………………………
…………………………………………………………………………………………………………..
3. LOCATION OF RECEIVING DEPOT……………………………………………………………….
4. TYPE OF PRODUCT BEING IMPORTED…………………… …………………………………….
5. ESTIMATED QUANTITY (M. TONS)……………………………………………………………….
6. ESTIMATED VALUE ($)………………………………… (=N=)……………………………………….
7. PORT OF ORIGIN…………………………………………………………………………………...
8. PORT OF DISCHARGE IN NIGERIA……………………………………………………………….
9. FEES PAID (=N=………………………….) ………………………………………………………
………………………………………………………………………………………………………….
(In words)
I DECLARE THAT ALL THE PARTICULARS SET OUT IN THIS APPLICATION ARE TRUE IN THE
KNOWLEDGE THAT IF FOUND TO BE FALSE OR WRONG IN ANY MATERIAL RESPECT, THIS
PERMIT WILL NOT BE VALID.
10. …………………………………………………………….. DATE……………………….
NAME/SIGNATURE OF APPLICANT
___________________________________________________________________________________________
11. SECTION B FOR DPR USE ONLY
(I) BANK DRAFT REF. No…………………………………………………
(ii) AMOUNT PAID (=N=)…………………………….RECEIPT No……….
…………………………………………………………. ………………………………………
NAME/SIGNATURE OF RECEIVING OFFICER DATE/STAMP
12. RECOMMENDATION……………………………………………………………………………….
……………………….………………………………………………… …….…………………
NAME/SIGNATURE DATE
13. EXPIRY DATE OF PERMIT ……………………………………………………………………….
14. APPROVED BY ………………………………………………………….. …..…..………………
NAME/SIGNATURE DATE
DECEMBER 2003
DEPARTMENT OF PETROLEUM RESOURCES
GUIDELINES FOR THE IMPORTATION OF PETROLEUM
PRODUCTS INTO NIGERIA
These guidelines are made pursuant to the provisions of the Petroleum
(Amendment) Decree No. 37 of 1977, and are intended to facilitate the
DEREGULATION of the Petroleum Products sector as enunciated by the Federal
Government of Nigeria
A. ELIGIBILITY
The following categories of companies may apply for PERMIT to import
Petroleum products.
(i) Pipelines and Products Marketing Company (PPMC) Ltd
(ii) Major Petroleum Products Marketing Companies
(iii) Independent Petroleum Marketing Companies (IPMAN Companies) with
current licensed receptacles/Storage facilities (i.e. Jetties/Depots)
(iv) Independent Petroleum Marketing Companies (DAPPMA) Companies)
with current licensed receptacle/Storage facilities (i.e jetties/depots).
B CONDITIONS FOR IMPORTATION OF PETROLEUM PRODUCTS
(I) Application for import Permit which must be made on company's letter
headed paper and on DPR's prescribed form shall be forwarded to the
Director, Department of Petroleum Resources (DPR), 7, Kofo Abayomi
Street, Victoria Island, Lagos
(ii) All applications must be accompanied with;
(a) A copy of the Certificate of Incorporation of the applicant's
company.
(b) A copy of the company Article and Memorandum of Association
(original to be sighted by DPR)
(c) A Copy of the current Storage/Sales licence issued by the DPR.
(d) A Bank reference with committed and explicit statements
(e) 3-Years Tax Clearance Certificate
(f) An application fee of Seventy five Thousands Naira (N75,000.00)
only shall be charged per 30,000MT of each product . All fees shall
be in Bank Drafts and made payable to the Federal Government
of Nigeria (DPR FEES Account). Bank Drafts written “FGN” shall
not be honoured. A DPR service charge of Fifty Thousands Naira
(N50,000.00) only per application shall also be charged and made
payable to the Department of Petroleum Resources.
(iii) Every import Permit shall have duration of 90 days from the date of issue.
2
(iv) Each importer of petroleum products shall be required to submit returns on
the previous importation for which permit was granted, along with copies
of all relevant invoices and shipping documents, before any subsequent
application for an Import Permit can be approved.
Such documents shall include:-
a) Relevant Invoices
b) Bill of Lading
c) Photocopy of Approved Form “M”
d) Clearance or Import duty payment from Nigeria Customs &
Excise
e) Import Clearance Form duly certified by DPR representative
at the jetty.
f) Detail cargo information, such as direct shipment, ship to
ship, name of mother vessel, certificate of quality, last port
of call e.t.c
g) A copy of the “Certificate of Quantity” and “Certificate of
Quality” of previous imported and delivered products duely
authenticated by DPR (to be made available (for renewal of
import permit).
h) Evidence of utilization of the quantity of products for which
import permit was previously granted.
(v) For every new application for a permit, the permit granted to a company
for a previous importation must be surrendered to the Department of
Petroleum Resources.
(vi) All imported Petroleum products must meet the acceptable International
Standard quality specifications as approved by the Department of
Petroleum Resources.
(vii) At least 7 days prior to the arrival of the imported cargo at a Nigerian Port,
the importer shall ensure that the Certificate of Quality of the
consignment issued by the exporting refinery or a competent authority in
the country of origin is submitted to the DPR.
C. FACILITIES INSPECTION AND CERTIFICATION
All facilities for the storage of imported petroleum products must be
inspected by the DPR prior to licensing. The facilities must meet the
specification for the storage of class 'A' petroleum products (Gasoline and
Kerosene) and class 'B' petroleum products (AGO). All permanently
placed bulk storage tanks containing class 'A' petroleum products shall be
installed within a bundwall capable of containing the contents of the
largest of the storage tanks plus ten per cent of the capacity of the
3
remaining tanks and where there is only one tank, the bundwall shall be
capable of containing the content of the tank. In addition such tanks shall:
(i) Be fitted with access doors sufficiently large to enable easy access
and vents capable of relieving any excess pressure or vacuum.
(ii) Have access to the roofs by means of a ladder or staircase of a
type approved by the Director, Petroleum Resources and all
floating roof tanks shall have adequate wind girders.
(iii) Have provision for containing any leakage to prevent oil
contaminating the water when located above water.
(iv) Be provided with efficient electrical resistance not exceeding ten
ohms when measured by an earth resistance tester of the “Mega”
or similar type.
(v) Facilities must conform to all safety and environmental standards
for receiving and storing petroleum products.
(vi) All bulk storage facilities/receptacles (depots) must be equipped
with a well furnished quality control laboratory.
D. CONDITIONS FOR CARGO DISCHARGE AT THE JETTIES
A vessel laden with imported petroleum products shall only be allowed to
discharge where:
i. There is an evidence of import permit used in importing the product.
ii. The imported product has been fiscalised in the presence of a DPR
official and “Certificate of Quantity” issued.
iii. A re-certification analysis of the product composite sample is
conducted in the presence of a DPR official and the result certified
on- spec. A vessel shall therefore not discharge until the laboratory
recertification of a product is conducted.
iv. The importing company complies with the one week mandatory
submission of the “Certificate of Quality”, bill of lading and other
relevant documents in respect of the imported products.
v. Documents received from the vessel are not in conflict with those
submitted by the importer of the product.
March 2007
DEPARTMENT OF PETROLEUM RESOURCES
4
OTHER ISSUES FOR PETROLEUM PRODUCTS IMPORTATION
I. Import Permit document shall henceforth carry a Security Seal
II. All imports should now be tied to a specific import permit until the total
quantity applied for in the import has been utilized. Therefore, Permit
holders are henceforth mandated to make a formal report on the utilization
or non-utilization of permit within the three months.
III. All importers of Petroleum Products must provide detailed account of all
volume of product imported and corresponding monetary value so as to
cross-check product quantity requisition and utilization compliance.
IV. The Department of Petroleum Resources should make it mandatory for
the CBN to always demand for the “Certificate of Quantity” as a
prerequisite for granting subsequent allocation of foreign exchange. The
CBN currently relies on this document while processing foreign exchange,
however, the bank does not follow same for other importers of petroleum
products.
V. On the import permit application form, the DPR should provide a portion
for certifying the official stamp of the importer on the document.
VI. All applicant companies should state their proposed sources of foreign
exchange in their applications.
VII. All imported products must carry “Certificate of Quantity” duly
authenticated by DPR
VIII. Article of Association shall now be compulsory
5
DEPARTMENT OF PETROLEUM RESOURCES
APPLICATION FOR PETROLEUM PRODUCTS IMPORT PERMIT
1. NAME OF APPLICANT………………………………………………………………………………
2. REGISTERED ADDRESS IN NIGERIA……………………………………………………………
…………………………………………………………………………………………………………..
3. LOCATION OF RECEIVING DEPOT……………………………………………………………….
4. TYPE OF PRODUCT BEING IMPORTED…………………… …………………………………….
5. ESTIMATED QUANTITY (M. TONS)……………………………………………………………….
6. ESTIMATED VALUE ($)………………………………… (=N=)……………………………………….
7. PORT OF ORIGIN…………………………………………………………………………………...
8. PORT OF DISCHARGE IN NIGERIA……………………………………………………………….
9. FEES PAID (=N=………………………….) ………………………………………………………
………………………………………………………………………………………………………….
(In words)
I DECLARE THAT ALL THE PARTICULARS SET OUT IN THIS APPLICATION ARE TRUE IN THE
KNOWLEDGE THAT IF FOUND TO BE FALSE OR WRONG IN ANY MATERIAL RESPECT, THIS
PERMIT WILL NOT BE VALID.
10. …………………………………………………………….. DATE……………………….
NAME/SIGNATURE OF APPLICANT
___________________________________________________________________________________________
11. SECTION B FOR DPR USE ONLY
(I) BANK DRAFT REF. No…………………………………………………
(ii) AMOUNT PAID (=N=)…………………………….RECEIPT No……….
…………………………………………………………. ………………………………………
NAME/SIGNATURE OF RECEIVING OFFICER DATE/STAMP
12. RECOMMENDATION……………………………………………………………………………….
……………………….………………………………………………… …….…………………
NAME/SIGNATURE DATE
13. EXPIRY DATE OF PERMIT ……………………………………………………………………….
14. APPROVED BY ………………………………………………………….. …..…..………………
NAME/SIGNATURE DATE
DECEMBER 2003
DEPARTMENT OF PETROLEUM RESOURCES
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