Importing processed oil into Nigeria requires compliance with specific regulatory guidelines, obtaining necessary permits, and complying with customs procedures. Companies registered with the Corporate Affairs Commission (CAC) as providers of goods and services in the downstream sector of the Nigerian oil and gas industry are eligible to apply for a Petroleum Products Import Permit.
The permit is granted when the company has access to suitable storage facilities, either owned or leased. An import permit to import processed oil into Nigeria remains valid for 90 days from the date of issuance.
The guidelines for petroleum importation are issued pursuant to Paragraph 4(1) of the 4th Schedule to the Petroleum Act, CAP P10 L.F.N. 2004. These guidelines outline the regulatory requirements for obtaining a Petroleum Products Importation Permit. All imported petroleum products must comply with the National Quality Standard specifications approved by the Department of Petroleum Resources (DPR).
Overview of the Regulatory Requirements
Whether you are importing edible or petroleum-based oil, it is important to know the regulatory licenses and permits required. They include the following:
1. Department of Petroleum Resources (DPR) Permit
A company intending to import processed oil into Nigeria must apply to the Department of Petroleum Resources (DPR). DPR is the regulatory agency responsible for issuing import permits for petroleum products into Nigeria.
This application serves as the first step in obtaining the necessary import permit, ensuring compliance with regulatory requirements. To support the application, the company must attach the following documents:
- Certificate of Incorporation of the company
- Memorandum and Articles of Association of the company
- Evidence of the company’s compliance with tax obligations for the past three years.
- Proof of ownership or a valid lease agreement for appropriate storage facilities that meet regulatory standards.
- A comprehensive business plan outlining the company’s importation strategy, storage arrangements, and distribution network.
- Assurance that all imported petroleum products will meet the National Quality Standard specifications approved by the Department of Petroleum Resources (DPR).
- Bank reference letters or audited financial statements showing the company’s ability to undertake petroleum importation.
- Evidence of insurance policies covering risks associated with petroleum importation, storage, and distribution.
- Approvals or certifications from relevant environmental agencies
Once the application and required documents are submitted, the DPR will review the application and conduct necessary verifications. If all conditions are met, the company will be issued a Petroleum Products Importation Permit, which remains valid for 90 days from the date of issuance.
An importer with a previous import permit must submit a report detailing its utilization, including invoices, and shipping documents (Bill of Lading, Form M, import duty payment, cargo details, etc.), before a new import permit can be approved.
2. Petroleum Product Import Permit
Any company that meets the Department of Petroleum Resources (DPR) guidelines can apply for a Petroleum Products Import Permit after creating an account on the Import-Export Permit System (IMPEX). The IMPEX portal facilitates electronic application processing and permit issuance for petroleum product supply within and outside Nigeria.
Once the eligibility criteria are met, the applicant must:
- Log in to their IMPEX account and access the application engine.
- Click on “Create Application” to open the application form.
- Add the required petroleum products to the application, ensuring each product meets the specified requirements.
- Select a bank and preferred payment method, then complete the payment using available channels. The bank must upload a reference letter or financial document to support the application.
- Submit the application for processing with the following documents:
- Relevant Invoices
- Bill of Lading
- Photocopy of Approved Form “M”
- Clearance or Import duty payment from Nigeria Customs & Excise
- Import Clearance Form duly certified by DPR representative at the jetty.
- Detail cargo information, such as direct shipment, ship-to-ship, name of mother vessel, certificate of quality, last port of call, etc.
- A copy of the “Certificate of Quantity” and “Certificate of Quality” of previous imported and delivered products duly authenticated by DPR (to be made available (for renewal of import permit)
- Evidence of utilization of the quantity of products for which import permit was previously granted
- The applicant will receive a notification via the portal regarding the status of the application—approved, denied, or rejected.
3. Vessel Arrival Notification
Before a vessel arrives at a Nigerian port, the importer must notify the DPR at least 7 days in advance and provide the following documents:
- Certificate of Quantity
- Certificate of Quality from a competent authority in the country of origin
- Copy of Form M
- Copy of Cargo Manifest
- Invoices for the imported petroleum products
- A bank letter attesting to the transaction
Additionally, the importer must pay a vessel notification fee which is processed through the DPR’s petroleum product import electronic portal.
A vessel carrying the imported processed oil will only be permitted to discharge at the designated jetty if the required import permit for the product is provided. Also, the product must have been fiscalized in the presence of a DPR official. A re-certification analysis of the product sample must have been conducted, with the result confirming that the product is within specification.
Discharge will not be allowed until the laboratory re-certification is completed. Additionally, the documents received from the vessel must align with those previously uploaded by the importer. Once these conditions are met, a Certificate of Quantity will be issued by the DPR representative based on the shore tank receipts from the vessel.
Conclusion
Successfully importing refined oil into Nigeria requires meticulous planning, a solid understanding of regulatory requirements, and effective logistics management. By adhering to these steps, you can navigate the challenges of the importation process and ensure full compliance with Nigerian regulations.
At Resolution Law Firm, they provide seamless assistance in obtaining an import license. For more information on registration, procedures, and other essential details for acquiring an import license in Nigeria, contact +2348099223322.
