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REGULATED REGIME
August 14, 2000 - The Special Committee on the Review of
Petroleum Products Supply and Distribution (SRCPPSD) was inaugurated by,
Chief Ufot Ekaette, Secretary to the Government of the Federation.
September 26, 2000 - Session with the Chairman, Senate Committee
on Petroleum Resources.
October 26, 2000 - Public Hearing on the reforms in the
downstream Petroleum sector.
October 2000 - Submission of the Special Committee on the Review
of Petroleum
Products Supply and Distribution (SRCPPSD) Report.
January 2001 - Government White Paper on the report of the
SRCPPSD released
January 2001- Federal Ministry of Information flags off Public
enlightenment campaign on the SRCPPSD Report.
March - December 2001 - Presidential Technical Campaign Team on
Liberalization toured all the States of the Federation.
March 2001 - Government forwarded the Bill for an Act to
Establish Petroleum Products Pricing Regulatory Committee (PPPRC) to the
National Assembly.
March 28, 2001 - The Petroleum Products Pricing Regulatory
Committee (PPPRC) by inaugurated by the Secretary to the Government of
the Federation.
April - June 2001 - Senate and House Committees on Petroleum
matters organized Geopolitical Zonal hearings on
deregulation/Liberalization of the oil industry.
December 15, 2001 - Presidential Technical Committee and Labour
Seminar on the Liberalization programme.
December 13 & 31, 2001 - PPPRC met with the Stakeholders on plans
to kick-start the liberalization policy.
January 1, 2002 - Commencement of the liberalization of the
downstream sector of the oil industry. Ceiling prices for PMS, AGO and
HHK at N26, N26 and N24 respectively became operational. Also the
consumption tax of N3.00 was abolished while a NI.50 import duty was
introduced on all imported products. It also reviewed the sale of crude
to the NNPC from $9.50 to $18.0.
January 16, 2002 - Official Gazette Vol. 98: Petroleum Products
(Uniform Retail Prices (Amendment) Order 2002 was published.
January 16, 2002 - NLC calls a nation-wide illegal strike to protest the
liberalization policy. The Magistrate Court in Abuja declared it
illegal. The strike collapsed thereafter.
July 2, 2002 - The N1.50k import duty on petroleum products was
removed to encourage Marketers import products. The removal of the tax
signified that imported products attracted zero duty.
February 5, 2003 - The Senate passed the Petroleum Products
Pricing Regulatory Agency (Establishment) Bill, 2003. Its membership was
amended to include National Union of Petroleum and Natural Gas Workers (NUPENG),
Depots and Petroleum Products Marketers Association of Nigeria (DAPMAN)
and Trade Union Congress (TUC).
May 22, 2003 - The House of Representatives passed the Petroleum
Products Pricing Regulatory Agency (Establishment) Bill, 2003.
May 26, 2003 -_PPPRC Plenary and Stakeholders meetings were held
and an increase in the pump prices of petroleum products was proposed as
follows: PMS – N40 AGO - N38, and DPK N38.
May 27, 2003 - The President of the Federal Republic of Nigeria,
Chief Olusegun Obasanjo, GCFR signed into law the Petroleum Products
Pricing Regulatory Agency (Establishment) Bill, 2003.
June 12, 2003 - The PPPRA had an interactive session with the
officials of the Trade Union Congress (TUC) and Petroleum and natural
gas Senior Staff Association of Nigeria (PENGASSAN). Papers on the
"Imperative for Reforms in the Downstream Sector", and the "PPPRA's
Pricing Mechanism" were delivered.
June 13, 2003 - The PPPRA met with leaders of the Nigerian labour
Congress (NLC)
and intimated them of the need to continue with the liberalisation
process, which had been put on hold. The two parties agreed to dialogue
regularly.
June 16,2003 - The PPPRA organised a Seminar for the Nigerian
Business Community in Lagos on "Towards a Vibrant Downstream Sector of
the Petroleum Industry", to sensitize the public on the need to
liberalise the downstream petroleum sector.
June 19, 2003 - The President, Commander-in-Chief of the
Federal Republic of Nigeria, Chief Olusegun Obasanjo, GCFR, inaugurated
the Governing Board of the PPPRA.
June 20, 2003 - The PPPRA announced new pump prices of petroleum
products. The Agency also held an interactive session with the Nigerian
Guild of Editors, as public agenda setters, on the imperatives of the
impending reforms in the downstream sector.
June 29 - July 8, 2003 - Consequent upon the declaration of
nation-wide strike by the Nigeria Labour Congress and its affiliates,
several top level meetings were held by the Government, Labour Groups,
PPPRA and other Stakeholders to resolve the problem. In the end, the
inevitability of liberalising the downstream sector became very clear.
The means to achieve this goal would be national challenge to the
country's economic managers.
July 8, 2003 - The nation-wide strike action ended with the
political price adjustment of N34.00 per litre for Petrol Motor Spirit
(PMS) and N32.00 each for automotive gas Oil (AGO) and Dual Purpose
Kerosene (DPK). Thereafter, it issued a communiqué suspending the 8-day
old nationwide strike.
July 30, 2003 – The following sub-committees were proposed by the
PPPRA Board namely :
• Technical Sub-committee
• Pricing Sub-committee
• Communication Sub-committee
September 20, 2003 – The PPPRA met with the Stakeholders and
agreed on the commencement of the full liberalization of downstream sub
sector of the petroleum industry.
DEREGULATED REGIME
29th September 2003
- Downstream deregulation.
- Opening up of Apapa jetty for all players on a user fee basis.
- Formulation of new guidelines for documentation requirement and
important procedure for foreign exchange on importation of petroleum
products
October 6, 2003 – The PPPRA inspected the construction of NIPCO
Plc storage facilities in Apapa, Lagos (50 million litres of PMS, AGO, &
DPK) which was the initiative of IPMAN sequel to the implementation of
deregulation and liberalization policies of the government. The Agency
also inspected the storage facilities of OBAT petroleum and ASCON oil
demonstrating the preparedness of DAPPMA to participate fully in the
liberalization process.
October 14, 2003 – The PPPRA inspected the major market
facilities and reception of imported cargo in Lagos.
November 11, 2003 – The PPPRA met with the Central Bank Nigeria (CBN)
to discuss the request by the Market for increased allocation of foreign
exchange for products importation.
November 24 – 26, 2003 – PPPRA Monitoring Team visited Niger,
Kebbi, Sokoto, Zamfara, Katsina, Jigawa, Kano, and Kaduna States to
observe that products were available in all the eight (8) States visited
and there was no queue anywhere.
January 14, 2004 – A joint monitoring group made up of government
representative of the NLC was set up to tour the six (6) geo-political
zones in the country to assess the socio-economic impart of deregulation
of the downstream of the oil industry and identify all impediments to
the proper implementation of the policy.
January 24, 2004 – The PPPRA in collaboration with the Office of
the Special Assistant to the President on Petroleum Matters held a
closed door meeting with the two factions of the Independent Petroleum
Marketers Association of Nigeria (IPMAN) to resolve their internal
problems. A measure of success was achieved as each of them showed
willingness to embrace peace.
March 1, 2004 – The PPPRA organized a meeting on Documentation
Requirements for Foreign Exchange and Import Procedures for Petroleum
Products. The meeting discussed the issue of capital flight in
downstream sector and the diversion of foreign exchange meant for
importation of petroleum products by some Marketers. At the end of the
meeting an eight-man committee was set up to work out the guideline for
procurement and distribution of imported petroleum products. The
committees which will be chaired by the DPR consist of representatives
from CBN, Ministry of Finance, Nigeria Customs Services, IPMAN, DAPPMA,
Major Marketers and PPPRA respectively.
March 8, 2004 – The Consultant from Houston and Associates in
collaboration with the Bureau of Public Enterprise (BPE) commenced a
9-day training program for PPPRA staff. The training focused on:
• Action plan to open PPMC logistics to the Third Party use on a user
Fee Basis.
• Regulatory Framework for Open Access Petroleum Pipelines and Storage
Installations.
• Tariffs for Open Access Petroleum Pipelines and Storage Operations in
Nigeria
March 23, 2004 – The PPPRA organized a follow up meeting to the
one held on Monday 1st March, 2004 on documentation requirement for
foreign exchange and import procedures for Petroleum Products. After
going through the report of the sub-committee, the meeting adopted the
report and subsequently forwarded it to the Government. The Government
approved the following Documents for procurement of Foreign Exchange for
importation of Petroleum Products:
• Issuance of product certification by DPR to importers to ascertain
product quality and quantity.
• That the Chairman of PPPRA should write to the Management of CBN on
the need to create a forward contract market structure for sale of FOREX
to importers of Petroleum Products
• That DPR take responsibility of destination inspection and customs be
involved as observers.
A. REQUEST FOR FOREX
• Import permit from DPR for product importation
• Pro-forma invoice
• Completed Form M
B. NEGOTIATION FOR LETTER OF CREDIT
• Final Invoice
• Certification of Quality issued at the point of loading
• Bill of Lading
C. ON SUBMISSION OF FINAL DOCUMENT WITHIN 30 DAYS OF ARRIVAL OF
CARGOES
• Bill of Entry – Single Good Declaration (SGD) Form
• Product Certificate Report Issued by DPR
• No restrictions/barrier to new entrants into the Petroleum Products
Importation Market
• The condition for issuing Import Permits to Importers without
reception/storage facilities is a throughput arrangement with companies
who have such facilities
• Schedule of vessels coming into the country be made available to DPR
to enable them prepare for inspection.
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