X-Raying Midstream and Downstream Petroleum Regulations in Nigeria
Introduction
This section introduces the regulatory environment governing midstream and downstream petroleum operations in Nigeria. It sets the foundation for understanding why the Regulations exist, how they are enforced, and who must comply with them.
Purpose of the Guide
The purpose of this guide is to provide a clear and practical explanation of the Midstream and Downstream Petroleum Operations Regulations, 2023. It is designed to help operators, investors, service providers, and compliance professionals understand their regulatory obligations and apply them correctly in day-to-day operations. The guide explains approval requirements, operational controls, compliance expectations, and enforcement mechanisms in a structured and accessible manner. It also serves as a reference tool for planning projects, managing regulatory risk, and maintaining compliance throughout the lifecycle of midstream and downstream petroleum activities.
Legal Basis under the Petroleum Industry Act, 2021
The Midstream and Downstream Petroleum Operations Regulations, 2023 are issued pursuant to the Petroleum Industry Act (PIA), 2021. The PIA establishes the legal framework for the regulation, administration, and governance of Nigeria’s petroleum industry. Under the Act, regulatory responsibilities previously exercised under legacy DPR regulations were restructured and transferred to new institutions. The Regulations derive their authority from the PIA and have full force of law, making compliance mandatory for all affected petroleum operations.
Establishment and Role of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)
The Petroleum Industry Act establishes the Nigerian Midstream and Downstream Petroleum Regulatory Authority as the statutory regulator for midstream and downstream petroleum activities in Nigeria. The Authority is responsible for issuing licences, permits, and approvals; setting technical and operational standards; monitoring compliance; conducting inspections; and enforcing regulatory requirements. NMDPRA also oversees pricing, infrastructure access, safety, environmental protection, and market conduct within the midstream and downstream segments. Its mandate is to ensure safe, efficient, transparent, and commercially viable petroleum operations in line with national policy objectives.
Scope and Applicability of the Midstream and Downstream Petroleum Operations Regulations, 2023
The Regulations provide a comprehensive framework for the regulation of midstream and downstream petroleum operations in Nigeria. They cover activities such as gas processing, transportation, storage, distribution, importation, exportation, refining, petroleum liquids handling, retail operations, and related infrastructure. The Regulations apply across the entire operational lifecycle, including project development, construction, commissioning, operation, modification, and decommissioning of facilities. They also prescribe requirements for approvals, reporting, inspections, fees, and enforcement actions.
Who the Regulations Apply To
The Regulations apply to all persons and entities engaged in midstream and downstream petroleum activities in Nigeria. This includes licence and permit holders, operators of petroleum facilities, gas and petroleum liquids marketers, pipeline and storage facility operators, importers and exporters of petroleum products, and service providers whose activities are regulated by NMDPRA. Both Nigerian and foreign companies operating within Nigeria’s midstream and downstream petroleum sector are subject to these Regulations and are required to comply fully with all applicable provisions.
Objectives and Application of the Regulations
The primary objective of the Midstream and Downstream Petroleum Operations Regulations, 2023 is to provide a clear, consistent, and enforceable framework for regulating midstream and downstream petroleum activities in Nigeria. The Regulations are intended to promote safe and efficient operations, protect life, property, and the environment, and ensure the integrity of petroleum infrastructure. They also aim to encourage investment by providing regulatory certainty, support fair competition and open access to infrastructure, improve transparency in operations, and ensure that petroleum products and gas are handled, transported, and supplied in accordance with approved technical and safety standards.
Operations Covered under Midstream and Downstream Petroleum Activities
The Regulations apply to a wide range of petroleum activities within the midstream and downstream segments. These include gas processing, gas transportation, gas distribution, gas storage, and gas trading. They also cover petroleum liquids processing, refining, bulk storage, pipeline transportation, marine and coastal vessel operations, importation and exportation of petroleum products, wholesale and retail distribution, and operation of depots, terminals, and filling stations. In addition, the Regulations apply to the construction, modification, operation, and decommissioning of midstream and downstream facilities, as well as related support infrastructure that falls within NMDPRA’s regulatory mandate.
Regulatory Transition from DPR Legacy Framework to NMDPRA Regime
The Regulations reflect the transition from the former Department of Petroleum Resources (DPR) regulatory framework to the new institutional structure established under the Petroleum Industry Act, 2021. Legacy DPR guidelines, permits, and approvals now operate subject to the oversight of NMDPRA, and are being progressively harmonized with the new regulatory regime. The Regulations provide continuity by recognising existing approvals, while also introducing updated processes, clearer compliance requirements, and stronger enforcement mechanisms. This transition is intended to improve regulatory efficiency, reduce overlaps, and align Nigeria’s midstream and downstream regulation with international best practices.
Categories of Licences, Permits, and Approvals
The Regulations establish different categories of regulatory authorisations depending on the nature and scale of the activity. These include licences for core midstream and downstream operations such as gas processing, transportation, distribution, storage, refining, and bulk petroleum liquids handling. They also include permits for specific activities such as importation and exportation of petroleum products, retail operations, bunkering, marine transportation, and specialised gas services. In addition, certain activities require specific approvals or authorisations from the Authority, including construction approvals, operational clearances, and approvals for modification or expansion of existing facilities.
General Application Procedures
Applications for licences, permits, and approvals are made to the Nigerian Midstream and Downstream Petroleum Regulatory Authority in the prescribed form and manner. Applicants are required to submit detailed technical, financial, safety, environmental, and corporate information to demonstrate capacity to undertake the proposed activity. Applications are subject to regulatory review, which may include technical evaluations, site inspections, and requests for additional information. No licence or permit is deemed granted until formally issued by the Authority, and applicants are required to comply with all conditions attached to the approval.
Validity, Renewal, Modification, and Expiry of Licences
Licences and permits are issued for specific durations as prescribed by the Regulations or as stated in the approval instrument. Renewal is not automatic and is subject to satisfactory compliance with regulatory conditions, payment of applicable fees, and submission of required reports and returns. Any change to the scope, ownership, capacity, location, or operation of a licensed activity requires prior approval from the Authority. Licences and permits may expire, be suspended, or be revoked where an operator fails to comply with regulatory requirements or where approval conditions are breached.
Regulatory Approvals Required Before Commencement of Operations
Operators are required to obtain all relevant licences, permits, and approvals before commencing any regulated midstream or downstream petroleum activity. This includes approvals for facility construction, installation, commissioning, and operation. Commencing operations without the appropriate regulatory authorisation constitutes a violation of the Regulations and may attract sanctions, including fines, suspension of operations, or revocation of approvals. The Authority may also require evidence of compliance with other applicable laws and regulations as a condition precedent to commencement.
Duties and Obligations of Licensees and Permit Holders
Licensees and permit holders are required to conduct all regulated activities in accordance with the terms and conditions of their licences or permits, the Petroleum Industry Act, and all applicable regulations and guidelines issued by the Authority. Operations must be carried out using approved facilities, equipment, and processes, and in a manner that ensures safety, operational integrity, and environmental protection. Operators are responsible for maintaining their facilities in a fit-for-purpose condition and for ensuring continuous compliance throughout the operational lifecycle.
Appointment and Role of Facility Managers
Operators are required to appoint competent and qualified facility managers for each licensed or permitted facility. The facility manager is responsible for the day-to-day operation, maintenance, and safety of the facility, and serves as the primary point of contact with the Authority. The appointment of a facility manager must meet the competency and experience requirements prescribed by the Regulations, and any change in appointment is subject to notification or approval by the Authority. Facility managers are accountable for ensuring that operations comply with approved procedures and regulatory standards.
Health, Safety, and Environmental Obligations
Licensees and permit holders must implement effective health, safety, and environmental management systems that are appropriate to the nature and scale of their operations. This includes identifying and managing operational risks, preventing accidents and spills, protecting workers and the public, and minimizing environmental impacts. Operators are required to comply with all applicable safety standards, environmental protection measures, and incident reporting requirements, and to take immediate corrective action where deficiencies are identified.
Emergency Preparedness and Contingency Planning
Operators are required to develop, maintain, and regularly test emergency response and contingency plans for their facilities and operations. These plans must address credible emergency scenarios such as fires, explosions, leaks, spills, equipment failure, and security incidents. Licensees must ensure the availability of adequate emergency response equipment, trained personnel, and communication systems, and must coordinate emergency planning with relevant government agencies and stakeholders as required.
Training, Competence, and Personnel Requirements
Licensees and permit holders are responsible for ensuring that all personnel engaged in regulated activities are properly trained, competent, and medically fit to perform their assigned duties. This includes providing initial and ongoing training, maintaining competency records, and ensuring compliance with certification and licensing requirements. Operators must also ensure that contractors and third-party service providers meet the same competence and safety standards applicable to their own staff.
Information Disclosure and Regulatory Reporting Duties
Operators are required to submit accurate and timely information, reports, and returns to the Authority as prescribed by the Regulations or as may be requested from time to time. This includes operational data, safety and environmental reports, incident notifications, and compliance returns. Licensees must ensure that all information provided is complete and truthful, and must promptly notify the Authority of any material changes to their operations, ownership, or compliance status. Failure to meet disclosure and reporting obligations may result in regulatory sanctions.
Importation, Exportation, Shipping, and Product Handling Controls
This section outlines the regulatory controls governing the movement, handling, and quality assurance of petroleum products and gas within and across Nigeria’s borders.
Approved Ports and Entry Requirements
Importation and exportation of petroleum products and gas must be conducted only through ports, terminals, and entry points approved by the Authority. Operators are required to obtain the necessary permits and clearances before cargo arrival or departure. Documentation relating to cargo origin, destination, quantity, and quality must be submitted in line with regulatory requirements.
Berthing, Loading, and Discharge Compliance
All berthing, loading, and discharge operations must comply with approved procedures and safety standards. Operators are responsible for ensuring that vessels, terminals, and handling equipment meet regulatory and technical requirements. Operations must be supervised by qualified personnel, and records of loading and discharge activities must be properly maintained and made available for inspection.
Product Declaration Requirements for Vessels
Vessels carrying petroleum products or gas into or out of Nigeria are required to make full and accurate product declarations. These declarations must include details of product type, volume, specifications, and ownership. Any discrepancy between declared and actual cargo may result in enforcement action, including detention of cargo or vessel.
Sampling, Testing, and Certification of Petroleum Products
Petroleum products imported, exported, or distributed within Nigeria are subject to mandatory sampling, testing, and certification to ensure compliance with approved quality specifications. Sampling and testing must be carried out by approved laboratories or inspectors. Products that fail to meet specification standards may be rejected, quarantined, or disposed of in accordance with regulatory directives.
Prohibition of Discharge into Nigerian Waters
The discharge of petroleum products, oily residues, ballast water containing hydrocarbons, or any other prohibited substances into Nigerian waters is strictly prohibited. Operators and vessel owners are responsible for preventing pollution and for complying with applicable marine and environmental protection requirements. Violations may attract severe penalties and cleanup obligations.
Levies, Fees, and Contributions to the Midstream and Downstream Gas Infrastructure Fund
Operators engaged in regulated importation, exportation, and gas-related activities are required to pay applicable levies, fees, and charges as prescribed by the Regulations. This includes contributions to the Midstream and Downstream Gas Infrastructure Fund, where applicable. Payments must be made within prescribed timelines, and failure to comply may affect the validity of licences or permits.
Midstream and Downstream Gas Operations
The midstream and downstream gas operations outline the regulatory strategy governing gas-related activities across the midstream and downstream value chain. It explains how gas operations are licensed, controlled, and monitored to ensure safety, reliability of supply, infrastructure integrity, and orderly market development. The provisions apply to physical infrastructure, commercial activities, and emerging transportation models within Nigeria’s gas sector.
Regulated Gas Activities Requiring Licences or Permits
Gas-related activities subject to regulation include processing, transportation, storage, distribution, trading, importation, exportation, and retail supply. No regulated gas activity may be undertaken without the appropriate licence or permit issued by the Authority. Operators are required to obtain approvals that align with the specific nature, scale, and risk profile of their operations.
Gas Processing, Transportation, and Distribution
Gas processing facilities, pipelines, and distribution networks must be designed, constructed, operated, and maintained in accordance with approved technical standards and regulatory approvals. Operators are responsible for system integrity, operational reliability, capacity management, and compliance with safety and environmental requirements throughout the lifecycle of the facilities.
LPG and CNG Bulk Handling and Retail Operations
Bulk handling, storage, and retail distribution of liquefied petroleum gas (LPG) and compressed natural gas (CNG) are subject to specific licensing and operational controls. Operators must comply with prescribed safety distances, equipment specifications, handling procedures, and consumer protection requirements to minimise risk and ensure safe public use.
Bulk Gas Storage Facilities
Bulk gas storage facilities require prior regulatory approval and must meet defined design, construction, and operational standards. Storage operations are expected to maintain containment integrity, continuous monitoring systems, and effective emergency response arrangements appropriate to the volume and type of gas stored.
Wholesale and Retail Gas Supply
Wholesale and retail gas supply activities must be conducted within approved market structures and in compliance with applicable pricing, metering, billing, and consumer protection rules. Suppliers are subject to regulatory monitoring and are required to submit periodic operational and commercial reports to the Authority.
Gas Aggregation and Trading
Gas aggregation and trading activities require appropriate authorisation and are governed by transparency, reporting, and contractual compliance requirements. Aggregators and traders are expected to operate in a manner that supports fair access to gas supply, market stability, and adherence to applicable network and commercial rules.
Industrial Gas Storage and Utilisation
Industrial consumers that store and utilise gas as part of their operations are required to obtain relevant approvals and comply with applicable safety, operational, and reporting obligations. Regulatory oversight is proportionate to the scale and risk of the storage and utilisation activities.
Gas Import and Export Terminals
Gas import and export terminals are classified as regulated facilities and are subject to licensing, operational controls, inspection, and continuous regulatory oversight. Operators must comply with technical, safety, and environmental requirements applicable to cross-border gas movement.
Virtual Transportation of Gas
Virtual gas transportation, including the movement of compressed or liquefied gas by road or other non-pipeline means, is regulated under the Regulations. Operators are required to comply with prescribed licensing conditions, safety standards, handling procedures, and monitoring requirements applicable to non-pipeline gas transportation.
Midstream and Downstream Petroleum Liquids Operations
Midstream and Downstream Petroleum Liquids Operations explain how petroleum liquids operations are regulated across the midstream and downstream segments. It sets out the approval requirements, operational controls, and compliance obligations that apply to the handling of crude oil derivatives and refined petroleum products, from processing and transportation to storage, distribution, and final sale.
Petroleum Liquids Operations Subject to Regulation
All activities involving petroleum liquids within the midstream and downstream value chain are subject to regulation by the Authority. These activities include processing, refining, transportation, storage, distribution, retailing, importation, exportation, and associated support operations. No petroleum liquids activity may be carried out without the appropriate licence, permit, or approval issued in accordance with the Regulations.
Hydrocarbon Processing and Refining Facilities
Hydrocarbon processing plants and refineries are regulated facilities that require licensing and continuous regulatory oversight. Such facilities must be designed, constructed, operated, and maintained in line with approved technical, safety, and environmental standards. Operators are responsible for process safety, equipment integrity, emissions control, and compliance with approved operating limits.
Petroleum Liquids Pipelines and Transportation Networks
Pipelines and other transportation systems used for moving petroleum liquids are subject to licensing and operational control. Operators must ensure pipeline integrity, leak detection, corrosion management, and right-of-way protection. Transportation operations must comply with approved network codes, access conditions, and safety requirements to prevent loss, damage, or environmental harm.
Bulk Petroleum Liquids Storage and Depots
Bulk storage facilities and depots require regulatory approval and must comply with prescribed design, safety, and operational standards. This includes tank design, fire protection systems, containment measures, product segregation, and monitoring systems. Depot operators are required to maintain accurate inventory records and implement emergency response arrangements.
Distribution and Wholesale Supply of Petroleum Products
Wholesale distribution of petroleum products is regulated to ensure product quality, supply reliability, and market transparency. Distributors must operate within approved supply arrangements and comply with measurement, reporting, and product handling requirements. The Authority monitors wholesale activities to prevent diversion, adulteration, and supply disruptions.
Bunkering, Barge, and Coastal Vessel Operations
Bunkering and marine transportation of petroleum liquids, including barge and coastal vessel operations, are subject to specific permits and operational controls. Operators must comply with approved loading and discharge procedures, safety standards, vessel certification requirements, and marine environmental protection rules. Unauthorized bunkering or marine transfer operations are prohibited.
Retail Outlets and Filling Stations
Retail outlets and filling stations require permits and are subject to operational, safety, and consumer protection requirements. These include standards for facility layout, dispensing equipment, fire safety, product quality, pricing display, and customer safety. Retail operators are required to comply with inspection and reporting obligations imposed by the Authority.
Industrial Petroleum Liquids Storage and Utilisation
Industrial users that store or utilise petroleum liquids as part of their operations are required to obtain appropriate approvals. Such facilities must meet safety, environmental, and operational standards proportionate to their storage capacity and risk profile. Operators are also required to maintain records and submit reports as prescribed.
Importation and Exportation of Petroleum Liquids
Import and export of petroleum liquids are regulated activities that require permits and compliance with approved procedures. This includes product declaration, inspection, sampling, testing, and certification. Importers and exporters must ensure that only approved products enter or leave Nigeria and that all applicable fees and levies are paid.
Product Certification, Reconciliation, and Accounting
Operators involved in petroleum liquids handling are required to comply with product certification, reconciliation, and accounting requirements. This includes accurate measurement of volumes, reconciliation of receipts and deliveries, maintenance of records, and submission of periodic reports. These requirements are intended to ensure transparency, prevent losses, and support effective regulatory oversight.
Open Access, Competition, and Network Regulation
This part talks about how the Regulations promote fair access to infrastructure, prevent anti-competitive conduct, and support efficient use of midstream and downstream petroleum networks. It establishes the rules governing access to pipelines, storage facilities, and other regulated infrastructure.
Open Access Obligations for Pipelines and Storage Facilities
Operators of pipelines, terminals, and storage facilities designated as open access infrastructure are required to make available spare capacity to third parties on non-discriminatory terms. Access must be provided in accordance with approved conditions and subject to technical and operational feasibility.
Common Carrier and Own-Account Operations
The Regulations distinguish between common carrier operations, where infrastructure is available for third-party use, and own-account operations, where facilities are used exclusively by the owner. Operators must comply with the applicable regulatory requirements based on the classification of their facilities.
Network Codes for Gas and Petroleum Liquids
Network codes establish the technical, commercial, and operational rules governing access to and use of petroleum infrastructure. Operators are required to comply with approved network codes, including provisions on capacity allocation, nominations, balancing, and operational coordination.
Third-Party Access and Throughput Agreements
Third-party access to pipelines and facilities is governed by throughput or access agreements approved by the Authority. These agreements must be transparent, fair, and consistent with regulatory requirements, and must not unfairly restrict access or competition.
Anti-Competition Safeguards under the Regulations
The Regulations prohibit conduct that restricts competition, including abuse of dominant position, discriminatory access practices, and unfair pricing or capacity hoarding. The Authority has powers to monitor market conduct, investigate complaints, and impose corrective measures or sanctions where anti-competitive behaviour is identified.
Service Companies, Conformity, and Technology Regulation
This section focuses on the regulation of service providers and the control of technologies deployed in midstream and downstream operations, with emphasis on safety, competence, and operational reliability.
Permit Requirements for Oil and Gas Service Companies
Service companies providing regulated services in the midstream and downstream sectors are required to obtain appropriate permits or authorisations from the Authority. Permits are issued based on demonstrated technical capacity, competence, and compliance with applicable standards.
Annual Conformity Assessments
Service companies and operators are subject to periodic conformity assessments to confirm ongoing compliance with regulatory, technical, and safety requirements. These assessments may include documentation reviews, inspections, audits, and performance evaluations.
Technology Qualification and Approval Process
New or specialised technologies proposed for use in midstream and downstream operations are subject to qualification and approval by the Authority. The approval process assesses technical suitability, safety performance, reliability, and environmental impact before deployment.
Deployment of New Technologies in Midstream and Downstream Operations
Deployment of approved technologies must be carried out in accordance with regulatory conditions and operational controls. Operators remain responsible for monitoring performance, managing risks, and reporting any incidents or failures associated with the use of new technologies.
Deferment, Inspection, and Regulatory Oversight
This section explains how the Authority exercises ongoing oversight over midstream and downstream petroleum operations after licences and permits have been issued. It focuses on situations where operations are deferred, how inspections are conducted, the reporting obligations of operators, and the enforcement powers available to the regulator.
Deferment of Operations and Approval Requirements
Operators may be required to defer the commencement or continuation of operations where regulatory conditions have not been met, approvals have lapsed, or safety, technical, or environmental concerns have been identified. Deferment may also arise where an operator voluntarily seeks approval to delay operations due to project changes or unforeseen circumstances. In all cases, deferment is subject to the prior approval of the Authority, and operations must not resume until the applicable conditions or corrective actions have been satisfactorily addressed.
Regulatory Inspections and Right of Entry
The Authority has the statutory power to conduct inspections of regulated facilities, operations, and activities at any time. This includes the right of entry into premises, facilities, vessels, pipelines, storage depots, and other regulated assets for the purpose of verifying compliance. Inspections may be routine, risk-based, or triggered by incidents, complaints, or suspected non-compliance. Operators are required to provide access, records, personnel, and any information reasonably required by inspectors in the course of such oversight activities.
Prescribed Returns and Data Submission
Licensees and permit holders are required to submit periodic returns, operational data, and regulatory reports in the form and manner prescribed by the Authority. These returns may cover production volumes, storage levels, imports and exports, safety performance, incidents, and other operational metrics. Accurate and timely data submission is a core compliance obligation and enables the Authority to monitor sector performance, manage risks, and enforce regulatory standards. Failure to submit prescribed returns constitutes a breach of regulatory requirements.
Facility Shutdowns and Enforcement Actions
Where serious non-compliance, unsafe conditions, or regulatory breaches are identified, the Authority may order the partial or total shutdown of a facility or operation. Enforcement actions may also include suspension or revocation of licences and permits, sealing of facilities, imposition of administrative penalties, or other sanctions provided under the Regulations. Facility shutdowns may remain in effect until the operator has remedied the identified issues and obtained formal clearance from the Authority to resume operations.
Non-Compliance, Enforcement, and Penalties
In this part, we detailed the enforcement powers held by the Authority. You will find information on the steps they can take; and the penalties you might face; if you do not stick to the regulations or your license conditions.
Notices for Potential and Actual Non-Compliance
The Authority may issue notices to operators where potential or actual non-compliance is identified. These notices typically specify the nature of the breach, corrective actions required, and timelines for compliance. Failure to respond adequately or within the prescribed timeframe may escalate the matter to enforcement action.
Administrative Penalties and Sanctions
The Regulations provide for the imposition of administrative penalties, including fines and compliance-related sanctions, for breaches of regulatory requirements. Penalties may be applied per day, per incident, or per violation, depending on the nature and severity of the non-compliance. Payment of penalties does not absolve the operator from rectifying the underlying breach.
Suspension, Revocation, and Sealing of Facilities
In cases of serious, repeated, or unresolved non-compliance, the Authority may suspend or revoke licences and permits. Facilities may also be sealed to prevent continued operations. Such actions may be temporary or permanent, depending on the circumstances and the operator’s compliance history.
Confiscation and Disposal Powers
The Authority has the power to seize, confiscate, and arrange for the disposal of petroleum products, equipment, or materials involved in unlawful or unsafe operations. Disposal may be carried out in a manner deemed appropriate by the Authority, particularly where products pose safety or environmental risks.
General Offences under the Regulations
Any act or omission that contravenes the Regulations, licence conditions, or lawful directives of the Authority constitutes an offence. Offences may attract administrative penalties, criminal liability where applicable, or both. Companies, directors, officers, and responsible personnel may be held accountable in accordance with applicable laws.
Interpretation and Key Definitions
This section clarifies how key words and expressions used in the Regulations are to be understood. Proper interpretation is essential for consistent application and compliance.
Statutory Definitions Used in the Regulations
The Regulations contain specific definitions for terms such as licence, permit, operator, facility, petroleum products, gas, and other regulatory concepts. These definitions have legal effect and must be applied as stated when interpreting obligations, rights, and compliance requirements.
Operational and Technical Terms
Certain operational, engineering, and technical terms are used to describe facilities, processes, and activities within the midstream and downstream sector. These terms provide clarity on the scope of regulated activities and help distinguish between different categories of operations, infrastructure, and services.
Practical Implications of Defined Terms for Operators
Defined terms determine how regulatory requirements apply in practice. They influence licensing thresholds, compliance obligations, reporting duties, and enforcement actions. Operators are expected to understand and apply these definitions correctly to avoid misinterpretation that could result in non-compliance or regulatory sanctions.
Fees, Charges, and Schedules
This section explains the financial obligations associated with licensing, permitting, and regulatory oversight under the Midstream and Downstream Petroleum Operations Regulations, 2023. It clarifies the types of fees payable, when they apply, and how they support regulatory administration and infrastructure development. According to mainstream and downstream petroleum operations regulations of Nigeria, 2023 the tables below show the fees, charges and schedules as follows:
FIRST SCHEDULE
LICENCES, PERMITS, AUTHORISATIONS AND FEES
| S/N | LICENCE /PERMIT/APPROVAL FEES | ||
| INSTRUMENTS | PROCESSING FEES | APPLICATION FEES | |
| A | HYDROCARBON PROCESSING FACILITIES | ||
| 1 | Licence to Establish (LTE) | USD 20,000 for capacities < L000 BPSD or its MBTU equivalent. | USD 2,000 |
| USD 50,000 for capacities between 1,000 and 30,000BPSD or its MBTU equivalent. | |||
| USD 150,000 for capacities above 30,000 BPSD or its MBTU equivalent. | |||
| 2 | Licence to Construct (LTC) | USD 10,000 for capacities < 1,000 BPSD or its MBTU equivalent. | USD2,000 |
| USD 20,000 for capacities between 1,000 and 30,000 BPSD or its MBTU equivalent. | |||
| USD 30,000 for capacities above 30,000 BPSD or its MBTU equivalent | |||
| 3 | Licence to Operate (LTO) New | USD 50,000 for capacities < 1,000 BPSD or its MBTU equivalent. | USD 2,000 |
| USD 100,000 for capacities between 1,000 and 30,000 BPSD or its MBTU equivalent. | |||
| USD 150,000 for capacities> 30,000 BPSD or its MBTU equivalent. | |||
| 4 | Licence to Operate (LTO) Renewal. | USD2,000 per I000BPSD or its MBTU equivalent. | USD 2,000 |
| 5 | Plant Relocation Approval. | USD 5,000 | N/A |
| 6 | Critical Equipment Relocation Approval. | USD 1,000 per equipment | N/A |
| 7 | Approval to Pre- Commission and Commission. | USD2,000 | N/A |
| 8 | Approval td Evacuate Products from Hydrocarbon Processing Facility. |
NGN 1 per liter | N/A |
| 9 | Products OffTakers Permit (for Volume =1> 250,000Liters). | NGN I per liter . | N/A |
| 10 | Petroleum Products Evacuation via Vessel (Cargo Quantity Clearance Fee). |
USD 600 | N/A |
| 11 | Approval to Evacuate Slop Oil from Hydrocarbon Processina, Plants. | USD 250 or its NGN equivalent | N/A |
| 12 | Approval to Evacuate Gas Plant Condensate. | NGN 1 per litre | N/A |
| 13 | Tank Calibration Approval | USD 1,500 per tank | N/A |
| 14 | Tank Integrity Test Approval | USD 1,500 per tank | N/A |
| 15 | Certification of Chemicals/ Additives. | USD250 (or its NGN equivalent) per chemical | N/A |
| 16 | Approval to Modify facility | USD 10,000 | N/A |
| 17 | Approval to Deploy New Technology | USD 1,000 | N/A |
| 18 | Conform ity Assessment Approval |
USD 5,000 for capacities < 1,000 BPSD or its MBTU equivalent | N/A |
| USD10,000 for capacities between 1,000 and 30.000 BPSD or its MBTU equivalent | N/A | ||
| USD 20,000 for capacities above 30,000 BPSD or its MBTU equivalent | N/A | ||
| B. HYDROCARBON LIQUIDS BLENDING/LUBRICANT REFILLING/BITUMEN PROCESSING/WASTE TREATMENT/PETROLEU M-BASEDADDITIVES PRODUCTION OPERATIONS | |||
| 1 | Licence To Establish (LTE) . | USD 1,500 or its NGN equivalent | N/A |
| 2 | Approval To Construct (ATC) | USD 2,500 or its NGN equivalent | N/A |
| 3 | Licence to Operate (L TO) | USD 5 per 5,000 liters or part thereof of plant processing capacity. | NGN 250,000 |
| 4 | 3rd Party Blending Approvals Product Owner |
NGN50,000 | NGN 0.5 per litre for volume < 20,000 (TPBA -PRO1) |
| NGN 75,000 | NGN 0.5 per litre for volume between 20,001- 100,000 (TPBA -PRO2) |
||
| ‘ | NGN 100.000 | NGN 0.5 per litre for volume between 100,001- 250,000 (TPBA-PRO3) | |
| NGN 150.000 | NGN 0.5 per litre for volume between 950,00 1-500,000 ( TPBA-PRO4) | ||
| NGN 250,000 | NGN 1 per liter for volume at 500.001 and abcwe (TPBA-PRO5) | ||
| 5 | 3 rd Party Blendina Approvals Plant Owner | NGN 75,000 | NGN 0.5 per liter for volume less than 20.000 (TPBA-PLO 1 ) |
| NGN 100,000 | NGN 0.5 per liter for volume between 90,00 1-1 00,000 (TPBA-PLO2) | ||
| NGN 150.000 | NGN 0.5 per liter for volume between 100,00 1 – 250,000 (TPRA-PL03) | ||
| NGN 250,000 | NGN 0.5 per liter for volume between 250,00 1 -500,000 (TPBA-PLO4) | ||
| NGN 300,000 | NGN 1 per liter for volume at 500001 and above (TPBA-PLO5) |
||
| 6 | Revalidation of LTC | USD1,000 | N/A |
| 7 | Approval To Modify | USD 1,000 or its NGN equivalent | N/A |
| 8 | Plant/Critical Equipment Relocation Approval |
USD2.500 or its NGN equivalent | N/A |
| 9 | Tank Calibration Approval | NGN 300,000 per tank | N/A |
| 10 | Tank linearity Test Approval | NGN 300,000 per tank | N/A |
| 11 | Lubricant Storage and Sales Licence (Lute Distributors (E-D1)) | NGN 200,000 | NGN 50,000 |
| 12 | Lubricant Storage and Sales Licence (Lobe Distributors ( E-D2)) |
NGN 150,000 | NGN50,000 |
| 13 | Lubricant Storage andSales Licence (Lube Distributors (E-D3)) | NGN 100,000 | NGN50,000 |
| 14 | Lubricant Storage and Sales Licence (Lube Distributors (E-D4)) | NGN 75,000 | NGN50,000 |
| 15 | Lubricant Storage and Sales Licence (Lube Retailers (E-R1)) |
NGN 50,000 | NGN 10,000 |
| 16 | Lubricant Storage and Sales Licence (Lube Retailers (E-R2)) | NGN 25,000 | NGN 10,000 |
| 17 | Lubricant Storage and Sales Licence (Lube Retailers (E-R3)) |
NGN 15,000 | NGN 10,000 |
| 18 | Lubricant Storage and Sales Licence (Lube Retailers (E-R4)) |
NGN 10,000 | NGN 10,000 |
| C TERMINAL | |||
| 1 | Terminal Establishment Order | USD 50,000 | N/A |
| 2 | Permit to collect crude oil sample for assay analysis | USD500 or itsNGN equivalent | N/A |
| 3 | Licence to establish crude oil or petroleum products export terminal (FPSO, FSO, land terminal etc.) | USD 50,000 | USD 5,000 |
| 4 | Licence to construct crude oil or petroleum products export terminal (FPSO, FSO, land terminal etc.) | USD 50,000 | USD 5,000 |
| 5 | Licence to Operate crude oil or petroleum products export terminal (FPSO, FSO, land terminal etc.)- New | USD 300,000 . |
USD 3,000 |
| 6 | Licence to operate crude oil terminal (FPSO, FSO and land terminal) Renewal | USD 200,000 for capacities < 500,000 BBL | N/A |
| USD 250,000 for capacities > 500,000 BBL and > 1,000,000 BBL | N/A | ||
| USD 300,000 for capacities >1,000,000 | N/A | ||
| D. | MEASUREMENT SYSTEM | ||
| 1 | Licence To Establish (LIE) a metering system | USD 10,000 | USD2,000 |
| 2 | Licence To Construct (LTC) a metering system | USD 10,000 | USD2,000 |
| 3 | Licence To Operate a LACT/ Meter | USD 10,000 | N/A |
| 4 | Calibration/Recertification of LAC T | USD2500 _ |
N/A |
| 5 | Calibration of Crude Oil Vessel Storage Tank- for vessels with capacity > 600.000BBI..s | USD 500 per tank | N/A |
| 6 | Calibration of Crude Oil Vessel Storage Tank- for vessels with capacity between 20,001 to 600.000B B Ls | USD 300 per tank | N/A |
| 7 | Calibration of Crude Oil Vessel Storage Tank- for vessels with capacity =-20,000 BBLs | USD 150 per tank | N/A |
| 8 | Calibration of Truck | NGN 5,000 per truck | N/A |
| 9 | Terminal Storage Tank Calibration / Recertification (crude oil and natural gas) | USD 1,500 per tank . | N/A |
| 10 | Coastal Vessel Tan k Calibration for dead weight of Vessel between 1 — 5.000MT (Petroleum products) |
NGN 200,000 per vessel | N/A |
| 11 | Coastal Vessel Tan k Calibration for dead weight of Vessel between 5,001 — 20.000 MT (Petroleum products) |
NGN 300,000 per vessel | N/A |
| 12 | Coastal Vessel Tank Calibration for dead weight of Vessel between 20.001 and above (Petroleum Products) |
NGN 400,000 per vessel | N/A |
| 13 | Conformity Assessment | USD 10,000 | N/A |
| E. TRANSPORTATION AND DISTRIBUTION | |||
| 1 | Barging, Rail and Trucking of Crude Oil (New and Renewal) | USD 2,000 for Barge/Rail USD 1,000 for Truck | N/A |
| 2 | Barging. Rail and Trucking of Crude Oil Supplementary. | USD 1,500 for Barge/ Rail USD 500 for truck | N A |
| F. | PETROLEUM LIQUIDS NETWORK CODE | ||
| 1 | Crude oil and condensate Transportation Network Operator (Ti) – System with Capacity < 166000 BBUD | USD2,500 USD 1.000 |
USD 850 |
| 2 | Crude oil and condensate Transportation Network Operator (T2) – System with Capacity 166000-830000 B BUD |
USD 1.500 | |
| 3 | Crude oil and condensate Transportation Network Operator (T3) – System with Capacity > 830000 B B VD | USD2,750 | USD2,000 |
| 4 | Petroleum products Trans- portation Network Operator (T1)- System with Capacity < 26 million litres per day |
USD400 | NGN 100,000 |
| 5 | Petroleum products Trans- portation Network Operator (T2)- System with Capacity between 26 million and 131 mil I ionlitres per day |
USD 850 | NGN 80,000 |
| 6 | Petroleum products Trans- portation Network Operator (T3)- System with Capacity > 131million litres per day | USD 1000 | NGN 70,000 |
| G | GAS NETWORK CODE | ||
| 1 | Gas Transportation Network Operator (Ti) – System with Capacity <1 BSCF!D | USD 2,500 | USD 1,000 |
| 2 | Gas Transportation Network Operator (T2) – System with Capacity I -5BSCF/D | USD 1,500 | USD 850 |
| 3 | Gas Transportation Network Operator (T3) – System with Capacity >5BSCF/D | USD 2,750 | USD 2,000 |
| 4 | Gas Shipper (Si) – Shipping Capacity I – 30 MMSCF/D | USD 1,000 | USD 500 |
| 5 | Gas Shipper (52) – Shipping Capacity 31 – 200 MMSCF/D | USD2,000 USD 1,000 |
|
| 6 | Gas Shipper (S3) – Shipping Capacity >200 MMSCF/D | USD 1,500 | USD 850 |
| 7 | Network Agent | USD 1,000 | USD 500 |
| H | EXPORT AND IMPORT | ||
| 1 | Export Permit (for petroleum. petroleum products and natural gas and gas products) |
USD 1.000 per application | N/A |
| 2 | Import Approval for Additives and other Chemicals | USD 1.000 | N/A |
| 3 | Coastal Vessel Licence | USD 1200 | NGN 100,000 |
| 4 | Coastal Vessel Clearance | NGN IILTR | N/A |
| 5 | Import Permit (For Petroleum, Petroleum Products and Natural Gas and Gas Products) |
USD 500 | NGN 75,000/30MT |
| 6 | Import Permit of Synthetic and Bulk Finished Lubricants | NGN 1 /LTR | N/A |
| 7 | Approval for Inclusion of Countries of Origin | USD500 | NGN 75,000/30MT |
| I. | PETROLEUM PRODUCTS DEPOT | ||
| 1 | Licence to Establish (LIE) | USD 10,000 or its NGN equivalent | N/A |
| 2 | Approval to Construct (ATC) | USD 20,000 or its NON equivalent | N/A |
| 3 | Licence to Operate (LTO)-New and Renewal | NGN3,000,000 for capacities between 0 to 10,000,000 liters and every 5,000 litres above 10,000,000 liters attracts NGN 1. | NGN500,000 |
| 4 | Distribution or Marketing Licence New or Renewal | NGN 250,000 | N/A |
| 5 | Facility Modification Approval | USD 3500 or its NON equivalent | N/A |
| 6 | Tank Calibration Approval | USD 800 per tank or its NON equivalent | N/A |
| 7 | Tank Integrity Test Approval | USD 800 per tank or its NON equivalent | N/A |
| 8 | Backloading | USD 5,000 or its NGN equivalent | N/A |
| 9 | Ann ua I Reg istrat ion of Petroleum Product Jetty |
USD 2,500 or its NON equivalent | N/A |
| 10 | Tank Conversion | USD 2,500 or its NON equivalent for the first tank and USD 750 per tank for subsequent tanks | N/A |
| 11 | Periodic Conform ity Assessment |
USD 1,000 | N/A |
|
|
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| J | BULK GAS STORAGE FACILITIES (GAS DEPOT) | ||
| 1 | Licence to Establish | USD 5.000 | N/A |
| 2 | Licence to Construct | USD 5.000 | NGN 100,000 |
| 3 | Licence to Operate (New and Renewal) | USD2.500 for capacities —3000 m-r or part thereof NGN 500.000 per tank |
NGN 500,000 |
| 4 | Tank Calibration Approval | NGN 500,000 per tank | N/A |
| 5 | Hydrotest and Integrity Approval |
NGN 500,000 per tank | N/A |
| 6 | Pre-Commissioning and Commissioning Approval |
USD 1200 or its NON equivalent | N/A |
| 7 | LPG Offtake Permit | USD 1200 or its NON equivalent | NON 100,000/ 5000MT |
| 8 | Category D and M icro Distribution Centres (MDC (New/Renewal) |
Not exceeding 500 kilograms (ke)—NGN 15.000 | Not exceeding 500 kilograms (kg) = NGN5,000 |
| Additional 500 kg or part thereof — NGN 20,000 | Additional 500 kf.! or part thereof NO N5.000 | ||
| Exceeding 2.000 kg = NGN 100,000 | Exceeding 2.000 kg = NGN 20,000 | ||
| 9 | Periodic Conformity Assessment | USD1,000 | N/A |
| K. | BULK PETROLEUM LIQUID STORAGE (CRUDE 01 L STORAGE) | ||
| 1 | Licence to Establish | USD 20.000 for capacities 0 – 50,000 BBL | USD 2,000 |
| USD 50.000 for capacities between 50,000 and 100,000 BPSD | |||
| USD 100,000 for capacities above 100,000 BBL | |||
| 2 | Licence to Construct | USD 20,000 for capacities 0 – 50,000 BBL | USD 2,000 |
| USD 50,000 for capacities between 50,000 and 100,000 BPSD |
|||
| USD 100,000 for capacities above 100.000 BBL | N/A | ||
| 3 | Licence to Operate ( LTO) (New and Renewal) |
USD 20,000 for capacities 0 – 50,000 BBL | USD 2,000 |
| USD 50,000 for capacities between 50.000 and 100.000 BPSD | |||
| USD 100.000 for capacities above 100,000 BBL | |||
| 4 | Approval to Modify | USD 10,000 | N/A |
| 5 | Tank Calibration Approval | USD 1.500 per tank | N/A N/A |
| 6 | Tank Integrity Test Approval | USD 1.500 per tank | |
| 7 | Periodic Conformity Assessment | USE) 1.000 | N/A |
| L | WHOLESALE PETROLEUM LIQUIDS SUPPLY LICENCE | ||
| 1 | Wholesale Petroleum Liquids (Crude Oil) Supply for Volumes <50.000 BBLS | USE) I per BBL | N/A |
| 2 | Wholesale Petroleum Liquids (Crude Oil) Supply for Volumes >=50,000 to 200,000 BBLS | USD 0.85 per BBL | N/A |
| 3 | Wholesale Petroleum Liquids (Crude Oil) Supply Volumes >200,000 BBLS | USD 0.5 per BBL | N/A |
| 4 | Wholesale Petroleum Liquids (Products) Supply | 50 Kobo per liter | N/A |
| M | WHOLESALE GAS SUPPLY LICENCE | ||
| 1 | Wholesale Gas Supply (GS 1 ) USD 0.25/Mscfd USD 25,000 Above 500Mscfd |
||
| 2 | Wholesale Gas Supply (Gs2) | 25- 500mscfd USD 0.5/Mscfd | USD 12,500 |
| 3 | Wholesale Gas Supply (GS3) Below 25Mscfd | USD5,000 | USD5,000 |
| 4 | Gas Distributor | USD 2,500 | USD 500 |
| 5 | Gas Aggregator | USD 10,000 | USD 2,500 |
| N. | INDUSTRIAL PETROLEUM PRODUCTS STORAGE AND UTILIZATION | ||
| 1 | Licence to Operate Industrial Consumer Storage Facility | NGN 75,000.00 for the first 20,000 liters, subsequently each additional 20,000 liters attract NGN 10,000.00 | NON 50,000 |
| 2 | Licence to Operate Mobile Containerized Filling Station (For Industrial Consumer) | NGN 1,000,000 | NGN 500,000 |
| O | INDUSTRIAL GAS STORAGE AND UTILIZATION | ||
| 1 | Licence to Establish (ATE) | NGN 100,000 | N/A |
| 2 | Licence to Construct Inspection |
NGN 100,000 | N/A |
| 3 | Licence To Operate (New/ Renewal) | NGN 100,000 | NGN 50,000 |
| P. | GAS TO TELECOM/SMALL SCALE INDUSTRIAL STORAGE AND | UTILIZATION | |
| 1 | Licence to Establish/ Licence to Consruct |
NGN 50.000 | N/A |
| 2 | Pressure Test | NGN 50,000 | N/A |
| 3 | Authorisation for ‘lank Burial | NGN 50,000 | N/A |
| 4 | Licence To Operate (New/ Renewal) | NGN 100,000 | N/A |
| Q. | PETROLEUM LIQUID RETAILING OPERATIONS AND INFRASTRUCTURE | ||
| 1 | Licence to Establish (LTE) | NGN 100,000.00 | N/A |
| 2 | Licence to Construct (LTC) |
NGN 200,000.00 | N/A |
| 3 | Licence to Operate/every 2 years | NGN 50,000.00 for the first 20.000 liters, subsequently each additional 20,000 liters attract NGN 5,000.00 |
NGN 50,000 |
| 4 | Authorisation for Modification | NGN 500,000 | NIA |
| 5 | Storage Tank Pressure Test Authorization | NGN 150,000 per tank | N/A |
| 6 | Storage Tank leak test Authorization | NGN 50,000 per tank | N/A |
| 7 | Storage Tank Calibration Authorisation | NGN 150.000 per tank | N/A |
| 8 | Tank Conversion Authorisation | NGN 100.000 per tank | N/A |
| 9 | Authorisation for Tank Burial | NGN 100,000 per tank | N/A |
| 10 | Authorisation To Pre- Commission and Commission | NGN 50,000.00 | N/A |
| 11 | Revalidation of Authorisation/ Licences | NGN 25,000.00 | N/A |
| Bunkering vessel/fixed and motorized barge Licence | NGN 10.000,000.00 | NGN 1.000.000.00 | |
| Licence to Operate Mobile Containerized Filling Station | NGN 1,000,000 – |
NGN 500,000 | |
| R | GAS PRODUCTS RETICULATION | ||
| 1 | Licence to Establish (LTE) | NGN 100,000 | N/A |
| 2 | Licence to Construct | NGN 200,000 | N/A |
| 3 | Licence to Operate/every 2 years | NGN 300,000 | NGN 25,000 |
| S. | LPG PROPANE HANDLING UNIT (PHU) | ||
| 1 | Licence To Establish (LTE) | NGN 100,000 | N/A |
| 2 | Licence to Construct | NGN 200,000 | N/A |
| 3 | Licence to Operate | NGN 300000 | NGN 25,000 |
| T. | GAS RETAILING OPERATIONS AND INFRASTRUCTURE (LPG REFILLING PLANT, AUTOGAS PLANT, LPG ADD-ON) | ||
| 1 | Licence To Establish (LTE) | 0.1MT – 5MT =NGN 100,000 | N/A |
| 5.IMT – 10MT =NGN 200,000 | N/A | ||
| 10.1MT – 60MT =NGN 300,000 | N/A | ||
| 2 | Licence to Construct/Install | 60.1 – 300MT =NGN 500,000 | N/A |
| 0.1MT -5MT=NGN 100,000 | N/A | ||
| 5.1MT- 10MT=NGN 200,000 | N/A | ||
| 10. I MT – 60MT =NGN 300,000 | N/A | ||
| 60.1 -300M’T=NGN 500,000 | N/A | ||
| 3 | Pressure Test Authorisation | NGN 150,000 | N/A . |
| 4 | Licence to Operate (New/ Renewal)/every 2 years | 0.IMT- 5MT=NGN 100,000 p.a | 5-IOOMT= |
| 5.1 MT – 10MT =NGN 200,000 p.a | NGN50,000 p.a and | ||
| 10.1 MT- 60MT =NGN 300,000 p.a | Additional 10MT or part thereof | ||
| 60.1 – 300MT =NGN 500,000 p.a | (Above I OOMT) = NGN5,000 (p.a) | ||
| 5 | Authorisation for Modification. | NGN 150,000 | N/A |
| 6 | Tank Burial Authorisation | NGN 150,000 | N/A |
| 7 | Tank Calibration Authorisation |
NGN 100,000 | N/A |
| 8 | Licence to Operate (LPG ADD-ON) | NGN 100,000 | N/A |
| U. | CNG COMPRESSION FACILITIES | ||
| 1 | Licence to Establish (LTE) | NGN 200,000 | 1 N/A |
| 2 | Licence to Construct | NGN 200,000 for less than 100,000 SCM and | NGN 20,000 |
| NGN300,000 for above 100,000 SCM. | |||
| NGN 300,000 for less than 100.000 SCM and | |||
| 3 | Licence to Operate | NGN500,000 for above 100,000 SCM | NGN 20,000 |
| V. | SMALL SCALE PLUG AND PLAY LNG | ||
| 1 | Licence to Establish (LTE) | NGN 500,000 | N/A |
| 2 | Licence to Construct | USD 1000 or its NGN equivalent per MMSCFD or MMBTU | NGN 50,000 |
| 3 | Licence to Operate | USD 1000 or its NGN equivalent per MMSCFD or MM BTU | NGN 50,000 |
| W. | GENERAL FEE | ||
| 1 | Due Diligence Request. | NGN 100,000 | N/A |
| 2 | Certificate of Quantity (COQ) | USD500 | N/A |
| 3 | Product Import Certification (PIC) | USD 500 per PIC or NGN equivalent | N/A |
| 4 | Product Reconciliation Clearance | USD 500 or NGN equivalent | N/A |
| 5 | Term inal Storage Tank Integrity (crude oil and natural gas) |
USD 1,500 per tank | N/A |
| X. | MIDSTREAM AND DOWNSTREAM OIL AND GAS INDUSTRY SERVICE PERMITS | ||
| 1 | General Purpose Category | NGN500 | NGN5,000 |
| 2 | Major Purpose Category | NGN2500 | NGN25,000 |
| 3 | Specialised Purpose Category | NGN7,500 | NGN250,000 |
| Note : All payments made are non-refundable and non-transferable. | |||
| SECOND SCHEDULE | |||
| [Regulation 46 (1), (2)(d) and (3)} | |||
| OFFENCES AND PENALTIES | |||
| S/N | OFFENCE | PENA LTIES | |
| 1 | Non-renewal of hydrocarbon processing facilities LTO. | NGN 2,000,000.00/year | |
| 2 | Late renewal of hydrocarbon processing facilities LTO beyond 31st of March. | NGN 500,000 | |
| 3 | Product evacuation from hydrocarbon processing facility by truck or rail without Authorisation | NGN 5,000,000.00 per truck or rail wagon | |
| 4 | Product evacuation from hydrocarbon processing facilities through a vessel without authorisation. | USD 10,000.00 | |
| 5 | Vessel arrival at the loading berth without Authority clearance | USD 10,000.00 | |
| 6 | Product diversion by truck or rail | NGN 5,000,000.00 per truck or rail wagon | |
| 7 | Product diversion from hydrocarbon processing facility through a vessel. | USD 20..000.00 | |
| 8 | Using Authority authorised chemical/additive above or below approved quantity. | USD 100,000.00 | |
| 9 | Use of chemical unauthorised by the Authority in the hydrocarbon processing facilities. | USD 100,000.00 | |
| 10 | Operatin4 a blending plant or waste recycling plant or waste treatment plant or bitumen processing plant or petroleum’ 3sed additives facility without licence. | NGN 2,000,000 | |
| 11 | Late renewal of blending plant LTO. | NGN 300,000 | |
| 12 | Procurement of critical equipment without Test. | NGN 5,000,000 | |
| 13 | Diversion of base oil, | NGN 3,000,000 per truck | |
| 14 | Sale of base oil from a blending plant. | NGN 3,000,000 per truck | |
| 15 | Construction of a blending plant/waste recycling plant/ waste treatment plant/bitumen processing plant/petroleumbased additives facility without LIE. | NGN 1,000,000 | |
| 16 | Construction of a blending plant/waste recycling plant/ waste treatment plant/bitumen processing plant/petroleumbased additives facility without LTC. | NGN 5,000,000 | |
| 17 | Third party blending by a plant owner without authorization. | NGN 3,000,000 | |
| 18 | Third party blending by a product owner without authorization. | NGN 2,000,000 | |
| 19 | Operating a lubricant filling plant without LTO. | NGN 2,000,000 per year of operation without a licence | |
| 20 | Late renewal of lubricant filling plant LTO beyond 31st March of every year.. | NGN 100,000 | |
| 21 | Procurement of critical equipment without Factory Acceptance Test for lubricant filling plant. | NGN5,000,000 | |
| 22 | Construction of a lubricant filling plant without valid LTE. | NGN 3,000,000 | |
| 23 | Construction of lubricant filling plant without valid LTC. | NGN 3,000,000 | |
| 24 | Modification of a lubricant filling plant without authorization. | NGN 3,000,000 | |
| 25 | Operation of lubricant filling Plant without valid LTO. | NGN 3,000,000 | |
| 26 | Distributors operating without lubricant storage and sales licence. | NGN 200,000 per year | |
| 27 | Retailers operating without lubricant storage and sales licence. | NGN 100,000 peryear | |
| 28 | Engagement of non- Authority accredited contractors for fabrication, construction, calibration, testing, or any other midstream and downstream activities. | Not more than USD 250,000 and suspension of not more than 1 year | |
| 29 | Carrying Out midstream and downstream activities without Authority oil and gas industry service permit. | Not more than USD 250.000 and suspension of not more than 1 year |
|
| 30 | Using storage or changing tank product or pipeline product service without authorisation. | USD 5,000 | |
| 31 | Measuring petroleum at custody transfer or sales points with faulty or uncalibrated measuring equipment, Ullage Transmitting Instrument (UTI) or metering System. | USD 10,000 and seizure of faulty measuring instrument |
|
| 32 | Measuring petroleum products with faulty or uncalibrated measuring equipment or Ullage Transmitting Instrument (UT1). | NGN 100,000 and seizure of faulty measuring instrument |
|
| 33 | Conducting a factory acceptance test or site acceptance test of any critical equipment without authorisation and witnessing by officers of the Authority. | USD250,000 | |
| 34 | Modification, repair, or alteration of surface or underground crude oil storage tanks without authorisation. | USD25,000 | |
| 35 | Introduction of deadwoods, capillary tube or false bottom, etc in crude oil storage tanks. | US025,000 . | |
| 36 | Construction of a depot without LTC. | USD 100,000 | |
| 37 | Operation of a depot without LTO. | NGN 10,000,000 | |
| 38 | Modification of a depot without authorisation. | USD 100,000 | |
| 39 | Failure to calibrate storage Tank. | NGN 250,000 per tank | |
| 40 | Backloading in a depot without authorisation. | USD5,000 | |
| 41 | _ Blending in a depot without authorization. |
USD 100,000 | |
| 42 | Engaoing in third party petroleum products distribution without permit. | NON 3,000,000 | |
| 43 | Denial ‘of Access to Authority Personnel | NGN5,000,000.00 | |
| 44 | Assault or Harassment of Authority personnel. | NON 20,000,000 and suspension or revocation of licence | |
| 45 | Operating Industrial storage and utilisation without valid licence. | NGN 1,000,000 | |
| 46 | Burial of underground storage tank without Authority authorization. | NON 500,000 per tank | |
| 47 | Construction of retail outlet and CNG compression facilities without LTC. | NON 10.000,000 or seizure of the facility | |
| 48 | Declaration or false loading manifest. | NGN 1,000,000 | |
| 49 | Discharging product while selling in a retail outlet and refilling facilities. | NGN 500,000 | |
| 50 | Absence of a well-stocked first aid box or functional truck earthing cable or adequate caution signs at a Retail Outlet. | NON 50,000.00 | |
| 51 | Backloading of Petroleum Products in Retail Outlet. | NON 750.00/liter | |
| 52 | Concealing accident information for Investigation in Retail Outlet Operations. | NGN 2,000,000.00 | |
| 53 | Discharging of Petroleum products without Earthing cable. | NGN 100,000.00 | |
| 54 | Discharging Petroleum products during Lightening, Thunderstorm or Under Direct. | NON 200,000.00 | |
| 55 | Failure to submit monthly sales returns. | NON 50,000.00 | |
| 56 | improper or lack of color codes of underground storage tanks/ per tank. | NGN 10,000.00 | |
| 57 | Lack of Filling Station Register. | NGN 20,000.00 | |
| 58 | Product Diversion. | NON 500.00/liter | |
| 59 | Selling Regulated Petroleum Products above approved pump price. | NGN 200,000.00 | |
| 60 | Non-Compliance with DR MS Directive. | NGN 250,000.00 | |
| 61 | Operating Without Adequate Company identification. | NON 100,000.00 | |
| 62 | Product adulteration. 14200/Litre. | NGN 200.00/liter | |
| 63 | Take-over/Lease Without Approval. | NGN 1,000,000.00 | |
| 64 | Failure to comply with minimum industry safety training for staff in facility operations. | NON 2,000,000 | |
| 65 | Decanting and unauthorised peddling of petroleum products. | NGN 750 per litre or its equivalent in metric tonnes | |
| 66 | Product adulteration or trans-loading, in depots, transit or retail outlets. | NON 10,000.000 | |
| 67 | importation or off-spec petroleum products. | USD 2,000,000 | |
| 68 | Failure to display price billboard at retail outlets. | NGN 50,000 | |
| 69 | Poor housekeepina of retail outlet facilities. | NGN 50,000 | |
| 70 | Indiscriminate Parking of Vehicles and Trucks Within a Facility. | NGN 50,000 | |
| 71 | Pump under dispensing from retail outlets. | NGN 100,000.00 per dispensing pump | |
| 72 | Repair of vehicles within retail outlets and refilling plants | NGN 500,000 | |
| 73 | Failure to produce, upon demand, storage and sales inventories and reports of midstream and downstream facilities. | NGN 1,000,000 | |
| 74 | Establishment of retail outlets and CNG compression facility without LIE. | NGN L000,000 | |
| 75 | Construction of retail outlets and CNG compression facility without LTC. | NGN 5,000,000 | |
| 76 | Operation of retail outlets and CNG compression facility without LTO. | NGN -).000,000 | |
| 77 | Failure to conduct Pressure Test before tank burial. | NON 100,000.00 | |
| 78 | Falsification of Authority licence/permit/authorisations. | NON 5,000,000.00 | |
| 79 | Hoarding of Petroleum Product. | NGN 1.000,000.00 | |
| 80 | Late renewal ofAuthority retail outlets and CNG compression facility licence. | , NGN 100,000.00 | |
| 81 | Late renewal of Authority depots, terminals, and jett ies. | NON 500,000 | |
| 82 | Non-display of Authority’ Licence at a facility. | NON 50.000.00 | |
| 83 | Revalidation/Correction of licence/inputs. | NGN 250,000.00 | |
| 84 | Tank conversion without authorization. | NGN 500.000.00 | |
| 85 | Contravention of Authority’s sealing Order. | NGN 5,000,000.00 | |
| 86 | Under-utilisation of import permit. | NGN 550,000 | |
| 87 | Non-utilisation of import permit. | NON 1.000.000 | |
| 88 | Change of discharge port without approval. | NON 1.000,000 | |
| 89 | Late submission of vessel arrival notification. | NGN 500,000 | |
| 90 | Failure to comply with any provisions of these Regulations or any directives given or condition of any permit or licence issued under these Regulations. | Not exceeding USU250,000 | |
| 91 | Selling to an unlicenced ()Maker. | NGN5.000,000 | |
| 92 | Selling to unlicenced LPG refilling Plant. | NON2,500,000 | |
| 93 | Operating LPG refilling plant without LTO | NGN5.000.000 | |
| 94 | Construction of LPG refilling Plant without Approval. | NGN 2,500,000 | |
| 95 | Under dispensin!, of LPG refilling plant | NGN 200,000 | |
| 96 | Selling to unlicenced Category D and industrial storage and utilization facility. | NGN2,000,000 | |
| 97 | Modification of LPG refilling plant without approval | NGN1,000.000 | |
| 98 | Operating Autogas Plant without LTO. | NGN500,000 | |
| 99 | Construction of Autogas Plant without authorisation | NGN2,500.000 | |
| 100 | Under dispensing of Autogas plant. | NGN200,000 | |
| 101 | Modification and Upgrade without approval. | NGN200,000 | |
| 102 | Operating CNG Compression facilities without LTO. | NGN1,750,000 | |
| 103 | Construction of CNG facilities without LTC. | NGN5,000,000 | |
| 104 | Failure to conduct recertification exercise when due. | USD 5,000 per equipment | |
How We Can Help at Qeeva Advisory
At Qeeva Advisory, we support companies operating or investing in Nigeria’s midstream and downstream petroleum sector to understand, manage, and comply with regulatory requirements under the Petroleum Industry Act and the 2023 Regulations.
Our support includes:
- Regulatory advisory on licensing, permits, and approvals required for midstream and downstream operations
- Compliance reviews and gap assessments against NMDPRA regulations and guidelines
- Preparation and coordination of regulatory applications and supporting documentation
- Ongoing compliance management, reporting, and renewal support
- Advisory on operational changes, expansions, and regulatory approvals
- Risk management support to reduce exposure to enforcement actions and penalties
We work with operators, investors, EPC contractors, and service providers to ensure regulatory clarity, compliance certainty, and smooth engagement with relevant authorities.
Common Regulatory Risks in Midstream and Downstream Operations
Regulatory risks commonly arise from operating without valid approvals, failure to renew licences on time, inadequate reporting, non-compliance with technical standards, or breaches of safety and environmental requirements. Understanding these risk areas enables operators to put preventive controls in place.
Compliance Planning and Documentation
Effective compliance requires structured planning, clear assignment of responsibilities, and proper documentation. Operators are expected to maintain up-to-date records of licences, permits, inspections, approvals, operational data, and regulatory correspondence. Documentation must be readily available for inspection by the Authority.
Interface with Safety, Environmental, and Shipping Regulations
Midstream and downstream operations are subject not only to petroleum regulations but also to safety, environmental, maritime, and transportation laws. Operators must manage these overlapping requirements in an integrated manner to avoid regulatory conflicts and compliance gaps.
Best Practices for Sustaining Regulatory Compliance
Sustained compliance is achieved through regular internal audits, continuous staff training, proactive engagement with the regulator, timely submission of returns, and early identification of compliance issues. Embedding regulatory compliance into operational decision-making helps operators maintain approvals, avoid sanctions, and ensure long-term operational stability.
Key Takeaways
- The Midstream and Downstream Petroleum Operations Regulations, 2023 provide a single, structured regulatory framework for all midstream and downstream petroleum activities in Nigeria.
- The Regulations give full effect to the Petroleum Industry Act, 2021 by clearly defining regulatory authority, approval requirements, and compliance obligations.
- Operators must obtain the appropriate licences, permits, and approvals before commencing or modifying any regulated activity.
- Regulatory oversight now places stronger emphasis on safety, environmental protection, operational integrity, and transparency.
- Non-compliance attracts clear enforcement actions, including penalties, suspension, and facility shutdowns.
- Fees, charges, and levies are standardised and enforceable under the Regulations.
- Open access, fair competition, and infrastructure sharing are central regulatory principles.
- Continuous reporting, inspections, and disclosure obligations are essential for maintaining regulatory approval.
- Early compliance planning reduces regulatory risk and supports smooth project execution.
- The Regulations create greater certainty for investors and strengthen governance across the midstream and downstream petroleum sector in Nigeria.
Conclusion
The Midstream and Downstream Petroleum Operations Regulations, 2023 represent a significant step in strengthening Nigeria’s petroleum regulatory framework under the Petroleum Industry Act. They provide clearer rules, defined responsibilities, and stronger oversight across midstream and downstream activities. By Standardising licensing, operations, safety, market conduct, and enforcement, the Regulations enhance regulatory certainty, support investment, and improve operational discipline. Their effective implementation is expected to promote transparency, infrastructure integrity, fair competition, and sustainable sector governance, while positioning Nigeria’s midstream and downstream petroleum sector for long-term growth and resilience.
Call to Action
If you are planning, operating, or expanding midstream or downstream petroleum activities in Nigeria, early regulatory clarity is critical. Qeeva Advisory is well-positioned to guide you through licensing, compliance, and regulatory engagement under the Petroleum Industry Act framework.
Contact Qeeva Advisory to discuss how we can support your regulatory and operational objectives.
Tel: (+234) 802 320 0801, (+234) 807 576 5799
Email: info@qeeva.com
Office Address: 5, Ishola Bello Close, Iyalla Off Street, Alausa, Ikeja, Lagos, Nigeria