PROCEDURE & GUIDE FOR THE GRANT OF STORAGE AND SALES LICENSE FOR LUBRICATING OILS IN NIGERIA
This procedure guide (for licensing of lubricant retailing and distribution outlets in Nigeria) is issued pursuant to the provisions of the Petroleum (Amendment) Decree No. 37 of 1977 section 4(1) which stipulates that, no person shall import, store, sell or distribute any petroleum products in Nigeria without a license granted by the Director of Petroleum Resources.
Read: How to obtain Your Company Tax Clearance in Nigeria
Application Requirements
All applications for grant of storage and sales license for lubricants shall be in the prescribed application form and forwarded to the Director, Department of Petroleum Resources or any of its offices nationwide.
Each application shall be accompanied by the following documents:
i) Letter from sponsoring blending company. Also, attach ‘letter(s) of appointment’ from lube blending company(s) where retailer or
distributor is marketing lubricants from more than one sponsoring company.
ii) State/Local Government/Local Council Development Authority site permit (for sites outside service stations).
iii) Evidence of tax payment by retailer or distributor for the preceding year.
iv) Proof of competence on safe handling and distribution/retailing of lubricating oils. They should be able to educate customers as
applicable.
Storage and Sales Location Suitability Requirements in Nigeria
The applicant shall provide a storage premises for the retailing and distribution of lubricants. The premises shall meet the following
requirements:
i. It shall be comprised of a Store or a Warehouse for retailing and bulk distribution respectively of lubricants.
ii. It shall be well ventilated (not in a cellar enclosure) and must be at least 15m from any possible source of ignition.
iii. It shall be painted Grey (60%) with the sponsors(s) trade name(s)/logo(s) conspicuously embossed.
iv. Be provided with adequate fire extinguishers (dry chemical powder or Carbon dioxide foam extinguishers). Sand buckets shall also be provided.
v. Be provided with a sales register must be maintained for records of every transactions with a sales receipt issued.
vi. Be provided with waste disposal bins for the collection of used lubricant containers and an evacuation methodology of the
waste derived therefrom.
vii. Periodic returns on the total volume of lubricants retailed or distributed must be made to the nearest DPR office at prescribed
intervals.
viii. Storage and Sales of any other petroleum product is highly prohibited highly prohibited from the premises.
Get: Company formation or Registration Service in Nigeria
Facility Inspection by DPR Nigeria
Consequent upon a successful submission of an application for storage and sales license for lubricants, an inspection of the retailing or distribution location (with auxiliary facilities) shall be conducted by officers of the Department in line with set statutory provisions.
Statutory License Issuance/Renewal Fee in Naira
The following fees shall be applicable as statutory license fees and payable as both license issuance and renewal fees via DPR Treasury Single Account Platform.
In view of the above Table, ‘E’ denotes Category ‘E’ (Storage and Sales license category for lubricating oils) where, ‘E-D’ & ‘E-R’ represents Storage and Sales license for lubricants Distribution and Retailing respectively.
In addition to the above, a Processing fee of N50,000 and N10,000 shall respectively be paid by distributors and retailer for the grant/renewal of license.
License Validity
The validity of license for the storage and sales of lubricating oils shall be for a period of two years, expiring on the 31st December, of the other year, following issue of license.
Read: Steps & Permits You to Start Oil & Gas Business in Nigeria
Renewal of License
An application form for renewal of license shall be completed, statutory renewal fee paid, and a satisfactory facility inspection conducted before issuance of renewal license.
For assistance on this, Contact us
Source: DEPARTMENT OF PETROLEUM RESOURCES