Nigeria: NPA Measures Cut Fuel Exporting Companies From 30 To 3

Nigeria: NPA Measures Cut Fuel Exporting Companies From 30 To 3

The number of companies engaged in fuel export business have gone down from 30 to three, consequent to stringent measures introduced by the National Petroleum Authority (NPA) to curtail smuggling of fuel products.

In the past, it had cost the government about GH¢1 billion in revenue, due to irregularities in the fuel export to landlocked countries. However, as the number of exporters has reduced by 97 per cent, the situation changed since September 2017.

Mr Alhassan Tampuli, the Chief Executive Officer of the National Petroleum Authority (NPA), said “In our efforts to curb the menace, the NPA in September 2017, introduced stringent export guidelines to govern and monitor the activities of fuel product exports. This has resulted in a significant drop in fuel dumping activities.”

About 20 companies, before the implementation of the guidelines, exported about 30 milliliters of fuel products every month. Only three companies, at present, were in the business, lifting less than two milliliters of products per month. These measures considerably reduced export dumping. For the last quarter of 2017, the state was saved almost GH¢4 million in tax revenue. A guarantee bond with a face value equal to the tax that should be paid on the export products is required by exporters to be deposited, under the new guidelines.

Application for a letter of ‘No Objection’ indicating the quantities, product type, name of importer in Mali and a notarized contract between the parties, including the vehicles to be used and their registration numbers is also required. Incidents of export dumping and loss of revenue to the state were drastically reduced since most of the importers were unable to meet the stated requirements. PWKD13042018

Last modified onThursday, 12 April 2018 22:11
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