MOTOR SPIRIT (RETURNS) ACT

An Act requires sellers and distributors of petrol to file periodic returns on sales volumes and prices. It targets petrol station operators, fuel distributors, and regulatory authorities. This enables monitoring of distribution to ensure product availability and prevent hoarding.

What Is This Policy?

An Act requiring sellers and distributors of motor spirit (petrol) to file periodic returns on their sales volumes and prices with the relevant authority, enabling government to monitor petroleum product distribution.

Who Does It Target?

Petrol station operators and fuel distributors Petroleum products marketing companies The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Federal Ministry of Petroleum Resources

What Does It Aim to Achieve?

Enable the government to track petrol distribution, ensure product availability data, monitor pricing compliance, and detect hoarding or diversion of petroleum products.

Key Features

Mandatory Returns: All petrol sellers must file periodic returns showing volumes sold, prices charged, and sources of supply. Inspection: Officials may inspect petrol stations and fuel distribution facilities to verify accuracy of returns. Data Use: Returns data is used to monitor product availability and identify distribution problems. Penalties: Failure to file returns or filing false returns attracts fines and possible licence suspension.

Current Status

Rollout Stage: Active Coverage: Nationwide petroleum products distribution Beneficiaries: Government planning; consumers through better distribution monitoring Funding: Federal Government

How to Access

All retail petrol stations must be licensed and comply with filing requirements Returns filed with NMDPRA or the relevant state authority False returns attract prosecution Application method: Comply through licensing and returns filing with NMDPRA.

Important Terms

Returns are due at prescribed regular intervals Product diversion detected through returns data attracts serious sanctions NMDPRA uses returns to calculate national petroleum consumption statistics

Official Resources

Website: https://www.nmdpra.gov.ng Contact: Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)

Legal Framework

Enacted under the legislative authority of the National Assembly pursuant to Section 4 of the 1999 Constitution. Operates alongside the Petroleum Act 2021 (formerly the Petroleum Act Cap P10 LFN 2004), the Nigerian Midstream and Downstream Petroleum Regulatory Authority Act, the Nigerian National Petroleum Corporation Act, and the Petroleum Profits Tax Act.