Daily Law Tips (Tip 781) by Onyekachi Umah, Esq., LL.M,
ACIArb(UK)
![image](/2021/04/NEMBE-LAWYERS.jpg")
Introduction:
Nigeria is sadly still a crude oil driven economy, even in the face
of laudable innovations and focus on alternatives to crude oil by
most economies. Although, Elon Musk believes the world automobiles
will soon not need crude oil, Nigeria still has several approvals
for the construction of crude oil refineries. Also, most car
manufacturers in Nigeria have nothing “Teslaish”, yet. The Naira
and Kobo Nation has the African biggest oil refinery being built by
its citizen and richest black man; Mr. Aliko Dangote. The
unreliable electricity supply across Nigeria, also validates the
huge business in the importing and marketing petroleum products
across Nigeria for now and for many years to come.
![image](/2021/01/payne-alex.jpg")
The Federal Government of Nigeria regulates crude oil, petroleum
products and dealings on them. The Department of Petroleum
Resources (DPR) is a federal agency that regulates the business of
dealing on petroleum products in any part of Nigeria. The DPR has a
guideline on how to setup and run a filling station, that may
market petroleum products, including; Premium Motor Spirit (PMS)
popularly known as petrol; Dual Purpose Kerosene (DPK),
popularly known as kerosene and Automated Gas Oil (AGO), popularly
known as Diesel. The guidelines and roles of DPR are mandatory and
violating them is criminal. It is a criminal offence punishable
with life imprisonment for any person to deal, package, hawk, sell
or trade on petroleum or petroleum products without license.
Below is a checklist showing the requirement for setting
up and running a filling station, based on DPR GUIDELINES FOR
APPROVAL TO CONSTRUCT AND OPERATE PETROLEUM PRODUCTS FILLING
STATION, 2015.
1. Sustainability Check By The Department Of Petroleum
Resources
1.1 An application to DPR for site suitability inspection, to
cover;
a. Size of the proposed land site.
b. The site does not lie within pipeline or electricity high
tension cable Right Of
Way (ROW).
c. The distance from the edge of the road to the nearest pump will
not be less
than 15 meters.
d. Total number of petrol stations within 2km stretch of the site
on both sides
of the road will not be more than four including the
one under
consideration.
e. The distance between an existing station and the proposed one
will not be
less than 400 (four hundred) meters.
f. The drainage from the site will not go into a stream or
river.
g. In some instances where site is along Federal Highway, a letter
of consent
from the Federal Highway is required.
h. DPR guided/supervised Environmental Impact Assessment (EIA)
study of the site by DPR accredited consultant.
2. Approval To Construct Filling Station
2.1 If suitability report on the above preliminary issues is
favorable, the under
listed documents shall be required for submission to DPR office for
review without any obligation on DPR to grant Approval To Construct
(ATC), if any negative change to the suitability situation of the
site occurs before the grant.
2.1.1 Documents Required For Approval To
Construct
a. Application letter addressed to the Operations Controller of the
DPR Zonal/Field office nearest to where the location of the
proposed station site.
b. Two (2) photocopies of Certificate of Incorporation.
c. Two (2) photocopies of Memorandum and Article of
Association.
d. Two (2) photocopies of Current tax clearance.
e. Original and photocopy of Police report.
f. Original and photocopy of Fire report and Certificate.
g. Two (2) original copies of Approved building plan.
h. Two (2) photocopies of letter from Land & Survey.
i. Two (2) photocopies of Deed of conveyance.
j. Environmental Impact Assessment (EIA) report for underground
storage tank capacities greater than 270,000 litres.
2.2 After “Approval to construct” is granted, it is mandatory that
some meaningful development be made on site within three (3) months
from the date approval was granted. The approval expires if no
development commences within the time frame.
2.3 Sign Post should be installed on site immediately after
approval to construct is granted. The sign post should indicate the
name of the company and the reference number of the approval
letter.
2.4 Take note that, companies/persons involved in building of
Petrol Stations, construction and fabrication of U/G storage tanks
and canopy shall have DPR Permit to operate as Oil Industry Service
Company.
3. Storage and Licence to Operate a Petrol
Station
3.1 After Approval To Construct (ATC) and the construction of the
station during which it is mandatory to invite officer(s) of DPR to
witness the burial and Pressure/Leak test of the Underground tanks,
an application for storage and sales licence to operate the station
must be obtained. The following requirements must be met.
3.2 Requirements For Issuance Of Storage And Sales Licence:
The
following conditions must be met before storage and sales licence
can be granted.
a. A minimum of three (3) underground storage tanks (one each for
PMS, DPK, and AGO.)
b. A minimum of three (3) dispensing pumps (one each for PMS, DPK
and AGO)
c. Office building: Two (2) offices, sales room, toilet, lube
bay/store (Optional).
d. Well concreted forecourt “IN/OUT” drive way inclusive.
e. Wall fence demarcating the station (minimum height of 1.5m
high).
f. Good drainage Network.
g. Safety facilities (Fire Extinguishers, Sand Buckets, strategic
display of “NO SMOKING” warning signs.
h. Station Sign post/logo of company/outlet.
i. Standard canopy over PMS pumps (mandatory) with company name and
logo boldly written.
j. Standby Generator.
k. Accessible potable water source.
l. Standard (51” x 30”) price bill board with changeable price
mechanism
3.3 Documents Required For Issuance Of Storage And Sales
Licence:
a. Products U/G tanks pressure test report/Certificate and Leak
detection test (original printout).
b. Photographs of the station 8” X 10” (not computer-generated
photographs (snapped from different angles such that in and out
driveways pumps and other facilities are clearly shown.
c. Current Fire certificate.
d. Application form with Bank draft attached (amount depends on
storage capacity).
e. Evidence of trained attendants.
f. Application letter addressed to: The Operations Controller,
Department of Petroleum Resources.
4. Take-Over Of Petrol Station
4.1 The above requirements and documents are also applicable for a
takeover station in addition to the following: –
4.2 Documents Required For Take-Over Of Stations; are
a. Two (2) photocopies of certificate of Incorporation
b. Two (2) photocopies of Memorandum & Article of Association
c. Two (2) photocopies of Current tax clearance
d. Original and photocopy of Current Fire Service report and
certificate
e. Two (2) original copies of approved building plan.
f. Original copy of previous storage and sales licence
g. Pressure test certificate/report & Leak detection print out
(original & photocopy).
h. Evidence of trained pump attendants (original & photocopy).
i. Completed application form with Bank draft depending on the
total storage capacity applied for
j. Receipt of purchase (if it is an outright purchase, Management
agreement)
k. Release/Takeover letter on company’s letter headed paper
l. Station’s photographs taken from different angles showing the
followings:
i. Station’s name
ii. A fire extinguishers & a sand bucket on each dispensing pump
island
iii. Price bill board measuring 51” by 30” with fonts size 6” by
3”
iv. Clearly demarcated drive IN/OUT Ways
v. “NO SMOKING” signs conspicuously displayed in the station.
m. Where photocopies of documents are required, the originals
should be tendered for sighting and returned to applicant.
5. Requirements To Operate A Petrol Filling
Station
5.1 In addition to the major requirements on the “Approval to
Operate Filling Station” issued along with the maiden licence of a
station, the following are also mandatory:-
a. Functional Fire fighting gadgets must be kept handy and at
alert.
b. Ensure that a station Manager/Supervisor is always at the
station
c. Always make available alternative source of power to operate
products pumps and adequate illumination of the station.
d. Products are sold at prevailing government approved price
e. Products pumps accurate dispense/display of volume and price
f. Pump attendants trained and dressed in safety wears
g. Ensure that vehicle engines are switched off before fueling
h. Strategic and conspicuous display of warning signs on “NO
SMOKING and NO USE OF CELLPHONE” within the station
i. Stations always maintain good housekeeping.
j. Tanker trucks are earthed before starting and throughout
products discharge
k. Copy of each way-bill for products on sale shall have to be
available at the station at all times.
l. Products in tanker trucks to be discharged into storage tanks
shall have to be allowed to settle for at least two (2) hours while
in the station before the discharge.
m. Display of Current Storage and Sales licence in the station’s
office.
n. Availability of DPR inspections log book in the station
o. Unrestricted access to DPR officials to carry out statutory
functions in the station.
Conclusion:
Until there is no need for crude oil, the Department of Petroleum
Resources (DPR) will remain relevant. There cannot be a lawful
business on petroleum products in any part of Nigeria without the
permission of the DPR. Above is the checklist for requirements for
any individual or company that have interest in the marketing of
petrol products, through filling stations in any part of Nigeria.
It is a criminal offence punishable with life imprisonment for any
person to deal, package, hawk, sell or trade on petroleum or
petroleum products without license.
My authorities, are:
1. Sections 1, 2, 3, 4, 5, 6, 318 and 319 of the Constitution of
the Federal Republic of Nigeria, 1999.
2. Section 1, 4, 6, 8, 9 and 16 of the Petroleum Act, 1969
3. Section 1(17) of the Miscellaneous Offences Act.
4. Onyekachi Umah, “Punishment for Illegal Dealing
on Petroleum Products” (LearnNigerianLaws.com, 8 February
2018) accessed 23 April 2021
5. Onyekachi Umah, “Punishment for Price Increment during COVID-19
Lockdown in Lagos State” (LearnNigerianLaws.com, 13 April 2020)
accessed 23 April 2021
Sabi Law Projects:
#SabiLaw
#DailyLawTips
#SabiBusinessLaw
#SabiElectionLaws
#SabiHumanRights
#SabiLawOnTheBeatFm
#SabiLawLectureSeries
#CriminalJusticeMonday
#SabiLawVideoChallenge
Speak with the writer, ask questions or make inquiries on this
topic or any other via onyekachi.umah@gmail.com,
info@LearnNigerianLaws.com or +2348037665878 (whatsapp). To receive
free Daily Law Tips, join our free WhatsApp group via
https://chat.whatsapp.com/L7h4f1exItZ38FeuhXG4WN or Telegram group,
via the below link: https://t.me/LearnNigerianLaws
To keep up to date on all free legal awareness projects of Sabi
Law Foundation, follow us via
Facebook Page:@LearnNigerianLaws,
Instagram:@LearnNigerianLaws,
Twitter: @LearnNigeriaLaw,
YouTube: Learn Nigerian Laws,
WhatsApp Groups via
(https://chat.whatsapp.com/L7h4f1exItZ38FeuhXG4WN),
Telegram Group: (https://t.me/LearnNigerianLaws),
Facebook group:
(https://www.facebook.com/groups/129824937650907/?ref=share)
or visit our website: (www.LearnNigerianLaws.com)
Please share this publication for free till it gets to those
that need it most. Save a Nigerian today! NOTE: Sharing, modifying
or publishing this publication without giving credit to the author
or Sabi Law Foundation is a criminal breach of copyright and will
be prosecuted. This publication is the writer’s view not a legal
advice and does not create any form of relationship. You may reach
the writer for more information.
This publication is powered by www.LearnNigerianLaws.com {A Free
Law Awareness Program of Sabi Law Foundation, supported by the law
firm of Bezaleel Chambers International (BCI).} Sabi Law Foundation
is a Not-For-Profit and Non-Governmental Legal Awareness
Organization based in Nigeria. For sponsorship and partnership,
contact: sponsorship@learnnigerianlaws.com, sabilaw.ng@gmail.com or
+234 903 913 1200.
Daily Law Tips (Tip 781) by Onyekachi Umah, Esq., LL.M,
ACIArb(UK)
Introduction:
Nigeria is sadly still a crude oil driven economy, even in the face
of laudable innovations and focus on alternatives to crude oil by
most economies. Although, Elon Musk believes the world automobiles
will soon not need crude oil, Nigeria still has several approvals
for the construction of crude oil refineries. Also, most car
manufacturers in Nigeria have nothing “Teslaish”, yet. The Naira
and Kobo Nation has the African biggest oil refinery being built by
its citizen and richest black man; Mr. Aliko Dangote. The
unreliable electricity supply across Nigeria, also validates the
huge business in the importing and marketing petroleum products
across Nigeria for now and for many years to come.
The Federal Government of Nigeria regulates crude oil, petroleum
products and dealings on them. The Department of Petroleum
Resources (DPR) is a federal agency that regulates the business of
dealing on petroleum products in any part of Nigeria. The DPR has a
guideline on how to setup and run a filling station, that may
market petroleum products, including; Premium Motor Spirit (PMS)
popularly known as petrol; Dual Purpose Kerosene (DPK),
popularly known as kerosene and Automated Gas Oil (AGO), popularly
known as Diesel. The guidelines and roles of DPR are mandatory and
violating them is criminal. It is a criminal offence punishable
with life imprisonment for any person to deal, package, hawk, sell
or trade on petroleum or petroleum products without license.
Below is a checklist showing the requirement for setting
up and running a filling station, based on DPR GUIDELINES FOR
APPROVAL TO CONSTRUCT AND OPERATE PETROLEUM PRODUCTS FILLING
STATION, 2015.
1. Sustainability Check By The Department Of Petroleum
Resources
1.1 An application to DPR for site suitability inspection, to
cover;
a. Size of the proposed land site.
b. The site does not lie within pipeline or electricity high
tension cable Right Of
Way (ROW).
c. The distance from the edge of the road to the nearest pump will
not be less
than 15 meters.
d. Total number of petrol stations within 2km stretch of the site
on both sides
of the road will not be more than four including the
one under
consideration.
e. The distance between an existing station and the proposed one
will not be
less than 400 (four hundred) meters.
f. The drainage from the site will not go into a stream or
river.
g. In some instances where site is along Federal Highway, a letter
of consent
from the Federal Highway is required.
h. DPR guided/supervised Environmental Impact Assessment (EIA)
study of the site by DPR accredited consultant.
2. Approval To Construct Filling Station
2.1 If suitability report on the above preliminary issues is
favorable, the under
listed documents shall be required for submission to DPR office for
review without any obligation on DPR to grant Approval To Construct
(ATC), if any negative change to the suitability situation of the
site occurs before the grant.
2.1.1 Documents Required For Approval To
Construct
a. Application letter addressed to the Operations Controller of the
DPR Zonal/Field office nearest to where the location of the
proposed station site.
b. Two (2) photocopies of Certificate of Incorporation.
c. Two (2) photocopies of Memorandum and Article of
Association.
d. Two (2) photocopies of Current tax clearance.
e. Original and photocopy of Police report.
f. Original and photocopy of Fire report and Certificate.
g. Two (2) original copies of Approved building plan.
h. Two (2) photocopies of letter from Land & Survey.
i. Two (2) photocopies of Deed of conveyance.
j. Environmental Impact Assessment (EIA) report for underground
storage tank capacities greater than 270,000 litres.
2.2 After “Approval to construct” is granted, it is mandatory that
some meaningful development be made on site within three (3) months
from the date approval was granted. The approval expires if no
development commences within the time frame.
2.3 Sign Post should be installed on site immediately after
approval to construct is granted. The sign post should indicate the
name of the company and the reference number of the approval
letter.
2.4 Take note that, companies/persons involved in building of
Petrol Stations, construction and fabrication of U/G storage tanks
and canopy shall have DPR Permit to operate as Oil Industry Service
Company.
3. Storage and Licence to Operate a Petrol
Station
3.1 After Approval To Construct (ATC) and the construction of the
station during which it is mandatory to invite officer(s) of DPR to
witness the burial and Pressure/Leak test of the Underground tanks,
an application for storage and sales licence to operate the station
must be obtained. The following requirements must be met.
3.2 Requirements For Issuance Of Storage And Sales Licence:
The
following conditions must be met before storage and sales licence
can be granted.
a. A minimum of three (3) underground storage tanks (one each for
PMS, DPK, and AGO.)
b. A minimum of three (3) dispensing pumps (one each for PMS, DPK
and AGO)
c. Office building: Two (2) offices, sales room, toilet, lube
bay/store (Optional).
d. Well concreted forecourt “IN/OUT” drive way inclusive.
e. Wall fence demarcating the station (minimum height of 1.5m
high).
f. Good drainage Network.
g. Safety facilities (Fire Extinguishers, Sand Buckets, strategic
display of “NO SMOKING” warning signs.
h. Station Sign post/logo of company/outlet.
i. Standard canopy over PMS pumps (mandatory) with company name and
logo boldly written.
j. Standby Generator.
k. Accessible potable water source.
l. Standard (51” x 30”) price bill board with changeable price
mechanism
3.3 Documents Required For Issuance Of Storage And Sales
Licence:
a. Products U/G tanks pressure test report/Certificate and Leak
detection test (original printout).
b. Photographs of the station 8” X 10” (not computer-generated
photographs (snapped from different angles such that in and out
driveways pumps and other facilities are clearly shown.
c. Current Fire certificate.
d. Application form with Bank draft attached (amount depends on
storage capacity).
e. Evidence of trained attendants.
f. Application letter addressed to: The Operations Controller,
Department of Petroleum Resources.
4. Take-Over Of Petrol Station
4.1 The above requirements and documents are also applicable for a
takeover station in addition to the following: –
4.2 Documents Required For Take-Over Of Stations; are
a. Two (2) photocopies of certificate of Incorporation
b. Two (2) photocopies of Memorandum & Article of Association
c. Two (2) photocopies of Current tax clearance
d. Original and photocopy of Current Fire Service report and
certificate
e. Two (2) original copies of approved building plan.
f. Original copy of previous storage and sales licence
g. Pressure test certificate/report & Leak detection print out
(original & photocopy).
h. Evidence of trained pump attendants (original & photocopy).
i. Completed application form with Bank draft depending on the
total storage capacity applied for
j. Receipt of purchase (if it is an outright purchase, Management
agreement)
k. Release/Takeover letter on company’s letter headed paper
l. Station’s photographs taken from different angles showing the
followings:
i. Station’s name
ii. A fire extinguishers & a sand bucket on each dispensing pump
island
iii. Price bill board measuring 51” by 30” with fonts size 6” by
3”
iv. Clearly demarcated drive IN/OUT Ways
v. “NO SMOKING” signs conspicuously displayed in the station.
m. Where photocopies of documents are required, the originals
should be tendered for sighting and returned to applicant.
5. Requirements To Operate A Petrol Filling
Station
5.1 In addition to the major requirements on the “Approval to
Operate Filling Station” issued along with the maiden licence of a
station, the following are also mandatory:-
a. Functional Fire fighting gadgets must be kept handy and at
alert.
b. Ensure that a station Manager/Supervisor is always at the
station
c. Always make available alternative source of power to operate
products pumps and adequate illumination of the station.
d. Products are sold at prevailing government approved price
e. Products pumps accurate dispense/display of volume and price
f. Pump attendants trained and dressed in safety wears
g. Ensure that vehicle engines are switched off before fueling
h. Strategic and conspicuous display of warning signs on “NO
SMOKING and NO USE OF CELLPHONE” within the station
i. Stations always maintain good housekeeping.
j. Tanker trucks are earthed before starting and throughout
products discharge
k. Copy of each way-bill for products on sale shall have to be
available at the station at all times.
l. Products in tanker trucks to be discharged into storage tanks
shall have to be allowed to settle for at least two (2) hours while
in the station before the discharge.
m. Display of Current Storage and Sales licence in the station’s
office.
n. Availability of DPR inspections log book in the station
o. Unrestricted access to DPR officials to carry out statutory
functions in the station.
Conclusion:
Until there is no need for crude oil, the Department of Petroleum
Resources (DPR) will remain relevant. There cannot be a lawful
business on petroleum products in any part of Nigeria without the
permission of the DPR. Above is the checklist for requirements for
any individual or company that have interest in the marketing of
petrol products, through filling stations in any part of Nigeria.
It is a criminal offence punishable with life imprisonment for any
person to deal, package, hawk, sell or trade on petroleum or
petroleum products without license.
My authorities, are:
1. Sections 1, 2, 3, 4, 5, 6, 318 and 319 of the Constitution of
the Federal Republic of Nigeria, 1999.
2. Section 1, 4, 6, 8, 9 and 16 of the Petroleum Act, 1969
3. Section 1(17) of the Miscellaneous Offences Act.
4. Onyekachi Umah, “Punishment for Illegal Dealing
on Petroleum Products” (LearnNigerianLaws.com, 8 February
2018) accessed 23 April 2021
5. Onyekachi Umah, “Punishment for Price Increment during COVID-19
Lockdown in Lagos State” (LearnNigerianLaws.com, 13 April 2020)
accessed 23 April 2021
Sabi Law Projects:
#SabiLaw
#DailyLawTips
#SabiBusinessLaw
#SabiElectionLaws
#SabiHumanRights
#SabiLawOnTheBeatFm
#SabiLawLectureSeries
#CriminalJusticeMonday
#SabiLawVideoChallenge
Speak with the writer, ask questions or make inquiries on this
topic or any other via onyekachi.umah@gmail.com,
info@LearnNigerianLaws.com or +2348037665878 (whatsapp). To receive
free Daily Law Tips, join our free WhatsApp group via
https://chat.whatsapp.com/L7h4f1exItZ38FeuhXG4WN or Telegram group,
via the below link: https://t.me/LearnNigerianLaws
To keep up to date on all free legal awareness projects of Sabi
Law Foundation, follow us via
Facebook Page:@LearnNigerianLaws,
Instagram:@LearnNigerianLaws,
Twitter: @LearnNigeriaLaw,
YouTube: Learn Nigerian Laws,
WhatsApp Groups via
(https://chat.whatsapp.com/L7h4f1exItZ38FeuhXG4WN),
Telegram Group: (https://t.me/LearnNigerianLaws),
Facebook group:
(https://www.facebook.com/groups/129824937650907/?ref=share)
or visit our website: (www.LearnNigerianLaws.com)
Please share this publication for free till it gets to those
that need it most. Save a Nigerian today! NOTE: Sharing, modifying
or publishing this publication without giving credit to the author
or Sabi Law Foundation is a criminal breach of copyright and will
be prosecuted. This publication is the writer’s view not a legal
advice and does not create any form of relationship. You may reach
the writer for more information.
This publication is powered by www.LearnNigerianLaws.com {A Free
Law Awareness Program of Sabi Law Foundation, supported by the law
firm of Bezaleel Chambers International (BCI).} Sabi Law Foundation
is a Not-For-Profit and Non-Governmental Legal Awareness
Organization based in Nigeria. For sponsorship and partnership,
contact: sponsorship@learnnigerianlaws.com, sabilaw.ng@gmail.com or
+234 903 913 1200.