When it comes to obtaining NMDPRA permits and licenses for their facilities, LPG operators and retailers in Nigeria encounter a number of challenges and impediments. Many of these retailers and operators simply do not know how to obtain their permits because they are unfamiliar with the website and procedures required to obtain the necessary documents. As a result, they are forced to operate their LPG retail facilities illegally and without proper paperwork, and because many of these operators and retailers are small businesses, they have been able to hide from authorities for a long time.
LPG in Nigeria has gathered from the NMDPRA communique that retailers and operators should take advantage of the one-month grace time to renew or regularize their licenses, as failing to do so will result in severe penalties. The "No License, No Loading" policy will be strictly enforced, allowing only facilities that have fulfilled regulatory requirements to load goods. This policy will surely prevent unlicensed facilities from operating and, as a result, improving operational safety. From now until April 30th, 2023, applications for renewal or regularization must be submitted within a one-month grace time.
Furthermore, operators are encouraged to automate their business operations and give access to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to monitor product movement and storage. LPG in Nigeria cannot state for certain what the Authority's goal is with this strategy, but we will keep an eye on the outcome. All operators must take advantage of this grace time to ensure that their facilities are licensed and in compliance with regulatory standards.
This timeline, in our view, is simply insufficient! Especially when it is clear that the high volume of traffic on the website will stymie the process for many LPG retailers/operators. We also stated above how difficult it was for these retailers/operators to comprehend the process, when their licenses needed to be renewed, and the significance of regularization for their LPG facilities. As a result, we encourage our LPG retailers/operators who want to know how to apply for or renew their LPG Plant permit with NMDPRA to click here.