Establishment and Governing Board of/he Petroleum Products
Pricing Regulatory Agency
1. Establishment of Petroleum Products Pricing Regulatory Agency.
- Establishment of Governing Board of the Agency.
- Tenure of office, etc.
- Removal from office, etc.
- Emoluments, etc.
- Disclosure of interest.
Functions and Powers of the Agency
7. Functions of the Agency.
Staff of/he Agency
- Executive Secretary of the Agency.
- Other employees of the Agency.
- Fund of the Agency.
- Expenditure of the Agency.
12. Annual estimates and accounts.
13. Annual reports
14. Power to Accept gifts
15. Power to borrow
17. Exemption from tax
- Limitation of suits against the Agency, etc.
- Service of documents.
- Restriction on execution against property of the Agency.
- Indemnity of officers.
- Directives by the President, etc.
- Short title.
Supplementary Provisions relating 10 the Board, etc.
Programmes for Implementation
An Act to establish the Petroleum Products Pricing Regulatory Agency; and for re-
[2003 No. 8]
[27/h May, 2003]
Establishment and Governing Board of the Petroleum Products
Pricing Regulatory Agency
1. Establishment of Petroleum Products Pricing Regulatory Agency
(1) There is established an agency to be known as the Petroleum Products Pricing
Regulatory Agency (in this Act referred to as "the Agency").
(2) The Agency-
(a) shall be a body corporate with perpetual succession and a common seal; and
(b) may sue and be sued in its corporate name.
(3) The Agency shall be located in the Federal Capital Territory, Abuja and shall not
be subject to the direction, control or supervision of any other authority in the perform-
ance of its functions under this Act other than the President.
- Establishment of Covering Board of the Agency
(1) There is established for the Agency a Governing Board which shall be responsi-
ble for the running of the Affairs of the Agency.
(2) The Agency shall consist of-
(a) a chairman;
(b) one representative each of the following-
(i) the Nigerian Chamber of Commerce, Industry, Mining and Agriculture;
(ii) the Manufacturers Association of Nigeria;
(iii) the Nigeria Labour Congress;
(iv) the Major Oil Marketers;
(v) the Independent Oil Marketers;
(vi) the Petroleum and Natural Gas Senior Staff Association;
(vii) the Transport Owners;
(viii) the Nigerian Employers Consultative Association;
(ix) the Nigerian Media (on rotation in every year between the Guild of
Editors), the Nigeria Union of Journalists and the Newspapers Proprie-
tors Association of Nigeria
(x) the Federal Office of Statistics;
(xi) the National Union of Road Transport Workers;
(xii) the Ministry of Petroleum Resources;
(xiii) the Federal Ministry of Employment, Labour and Productivity;
(xiv) the Federal Ministry of Transport;
(xv) the Federal Ministry of Finance;
(xvi) the Central Bank of Nigeria;
(xvii) the Presidency;
(xviii) the National Manpower Board;
(xix) the Nigerian National Petroleum Corporation;
(xx) the Nigerian Institute of Management;
(xxi) the National Union of Petroleum and Natural Gas Workers (NUPENG);
(xxii) the Trade Union Congress (TUC);
(xxiii) the Depot and Petroleum Products Marketers Association of Nigeria (DAPMAN);
(xxiv) Petroleum Equalisation Fund (PEF); and
(xxv) the Executive Secretary.
(3) The Chairman and other members of the Board shall-
(a) be persons of proven integrity who possess the requisite experience;
(b) in the case of persons specified in paragraph (b) (i) to (xi) of subsection (1) of
this section, be nominated by the bodies they represent; and
(c) be appointed by the President of the Federal Republic of Nigeria.
(4) The supplementary provisions set out in the First Schedule to this Act shall have
effect with respect to the proceedings of the Board and the other matters contained
- Tenure of office, etc.
The Chairman and other members of the Board, other than ex officio members-
(a) shall hold office on such terms and conditions as may be specified in their let-
ters of appointment; and
(b) may be reappointed for one further term and no more.
- Removal from office, etc.
(1) Notwithstanding the provisions of section 3 of this Act, a member may at any
time be removed from office by the President for inability to discharge the functions of
his office (whether arising from infirmity of mind or body or any other cause) or for
(2) A member of the Board may resign his appointment by a notice in writing under
his hand, addressed to the President and that member shall, on the date of the receipt of
the notice by the President cease to be a member of the Board.
- Emoluments, etc.
A member of the Board shall be paid such emoluments, allowances and benefits as
the President may, from time to time, approve.
6. Disclosure of interest
(1) A member of the Board who is directly or indirectly interested in any matter be-
ing deliberated on by the Board or is interested in any contract made or proposed to be
made by the Agency shall, as soon as possible after the relevant facts have come to his
knowledge, disclose the nature of his interest at a meeting of the Board.
(2) A disclosure under subsection (1) of this section shall be recorded in the minutes
of meetings of the Board and the member concerned shall-
(a) not, after the disclosure, take part in any deliberation or decision of the Board;and
(b) be excluded for the purpose of constituting a quorum of any meeting of the
Board for any deliberation or decision, with regard to the subject matter in re-
spect of which his interest is so disclosed.
Functions and Powers of the Agency
7. Functions of the Agency
The functions of the Agency are to-
(a) determine the pricing policy of petroleum products;
(b) regulate the supply and distribution of petroleum products;
(c) establish an information and data bank through liaison with all relevant agen-
cies to facilitate the making of informed and realistic decisions on pricing
(d) moderate volatility in petroleum products prices, while ensuring reasonable
returns to operators;
(e) oversee the implementation of the relevant recommendations and programmes
of the Federal Government as contained in the White Paper on the report of the
Special Committee on the review of Petroleum Products Supply and Distribu-
tion specified in the Second Schedule to this Act as they relate to its functions,
taking cognisance of the phasing of specific proposals;
(f) establish parameters and codes of conduct for all operators in the downstream
(g) maintain constant surveillance over all key indices relevant to pricing policy
and periodically approve benchmark prices for all petroleum products;
(h) identify macro-economic factors with relationship to prices of petroleum prod-
ucts and advise the Federal Government on appropriate strategies for dealing
(i) establish firm linkages with key segments of the Nigerian society, and ensure
that its decisions enjoy the widest possible understanding and support;
(j) prevent of collusion and restrictive trade practices harmful in the sector;
(k) exercise a mediatory role as necessary for all stakeholders in the sector;
(l) other functions, which the National Assembly may confer on the Agency from
time to time; and
(m) carry out such other activities as appear to it necessary or expedient for the full
and efficient discharge of its functions under this Act.
Staff of the Agency
- Executive Secretary of the Agency
(1) There shall be, for the Agency, an Executive Secretary who shall be appointed by
(2) The Executive Secretary shall be-
(a) a person of proven integrity and with extensive relevant experience;
(b) the Chief Executive and Accounting Officer of the Agency;
(c) responsible for the execution of the policy and the day to day administration of
the affairs of the Agency.
(3) The Executive Secretary shall hold office-
(a) for a term of four years in the first instance and may be reappointed for a fur-
ther term of four years and no more; and
(b) on such terms and conditions as may be specified in his letter of appointment.
- Other employees of the Agency
(1) The Board shall appoint, for the Agency, such officers and other employees as it
may, from time to time, deem necessary for the purposes of the Agency.
(2) The terms and conditions of service (including remuneration, allowances, benefits
and pensions) of officers and employees of the Agency shall be as determined by the
10. Fund of the Agency
The Agency shall establish and maintain a fund into which shall be paid and credited-
(a) the take-off grant from the Federal Government;
(b) annual subvention from the Federal Government;
(c) loans and grants-in-aid from national, bilateral and multilateral agencies;
(d) rents from the Agency's property, fees and other internally generated revenue
arising from the services provided by the Agency; and
(e) all other sums accruing to the Agency, from time to time.
11. Expenditure of the Agency
The Agency may, from time to time, apply the proceeds of the Fund to----
(a) the cost of administration of the Agency;
(b) the paying of the emoluments, allowances and benefits of members of the
Board and for reimbursing members of the Board or of any committee set up
by the Board for such expenses as may be expressly authorised by the Board;
(c) the payment of salaries, fees or other remuneration or allowances, gratuities
and pensions, and other benefits payable to the offices and other employees of
the Agency, so however that no payment of any kind under this paragraph (ex-
cept such as may be expressly authorised by the Board) shall be made to any
person who is in receipt of emoluments from the Federal or State Governments;
(d) the development and maintenance of any property vested in or owned by the
(e) any matter in connection with all or any of its functions under this Act.
12. Annual estimates and accounts
(1) The Agency shall, not later than 30th September in each year, subm it to the
President an estimate of its expenditure and income (including payments to the Agency)
for the next succeeding year.
(2) The Agency shall keep proper accounts in respect of each year and proper records
in relation to those accounts and shall cause its accounts to be audited within six months
after the end of each year by auditors appointed from the list and in accordance with the
guidelines supplied by the Auditor-General ofthe Federation.
13. Annual reports
The Agency shall prepare and submit to the Federal Executive Council, through the
President, not later than six months after the end of each year, a report in such form as he
may direct on the activities of the Agency during the immediate proceeding year, and
shall include in such report a copy of the audited accounts of the Agency for that and the
auditor's report on the accounts.
14. Power to accept gift
(1) The Agency may accept any gi ft of land, money or other property on such terms
and conditions, if any, as may be specified by the person or organisation making the gift.
(2) The Agency shall not accept any gift if the conditions attached by the person or
organisation offering the gift are inconsistent with the functions of Agency.
15. Power to borrow
(1) The Agency may, from time to time, borrow by overdraft or otherwise such sums
as it may require for the performance of its functions under this Act.
(2) The Agency shall not, without the approval of the President, borrow money
which exceeds, at any time, the amount set by the President.
(3) Notwithstanding subsection (1) of this section, where the sum to be borrowed is
in foreign currency, the Agency shall not borrow the sum without the prior approval of
The Agency may, subject to the provisions of this Act and the conditions of any trust
created in respect of any property, invest all or any of its funds in any security prescribed
by the Trustee Investments Act or in such other securities as may, from time to time, be
approved by the President.
[L.F.N. 2004 Cap. T221
17. Exemption from tax
(1) The Agency shall be exempt from the payment of income tax on any income ac-
cruing from investments made by the Board for the Agency or otherwise.
(2) The provisions of any enactment relating to the taxation of companies or trust
funds shall not apply to the Agency or the Board.
18. Limitation of suits against the Agency, etc.
(1) Subject to the provisions of this Act, the provisions of the Public Officers Protec-
tion Act shall apply in relation to any suit instituted against an officer or employee of the
[L.F.N. 2004 Cap. P41.]
(2) Notwithstanding anything contained in any other enactment, no suit against a
member of the Board or the Executive Secretary or any other officer or employee of the
Agency for any act done in pursuance or execution of this Act or any other enactment or
law, or of any public duty or authority in respect of any alleged neglect or default in exe-
cution of this Act or any other enactment or law, duty or authority, shall lie or be insti-
tuted in any court unless it is commenced-
(a) within three months next after the act, neglect or default complained of; or
(b) in the case of a continuation of damage or injury, within six months next after
the ceasing thereof.
(3) No suit shall be commenced against a member of the Board or the Executive Sec-
retary or any other officer or employee of the Agency before the expiration of a period of
one month after written notice of the intention to commence the suit shall have been
served on the Agency by the intending plaintiff or his agent.
(4) The notice referred to in subsection (3) of this section shall clearly and explicitly
state the cause of action, the particulars of the claim, the name and place of abode of the
intending plaintiff and the relief which he claims.
19. Service of documents
A notice, summons or other document required or authorised to be served on the
Agency under the provisions of this Act or any other enactment or law may be served by
delivering it to the Executive Secretary or by sending it by registered post addressed to
the Executive Secretary at the principal office of the Agency.
20. Restriction on execution against property of the Agency
(1) In any action or suit against the Agency, no execution or attachment of process in
the nature thereof shall be issued against the Agency unless not less than three months
notice of the intention to execute or attach has been given to the Agency.
(2) Any sum of money which by the judgment of any court has been awarded against
the Agency shall subject to any direction given by the COUl1, where notice of appeal
against the judgment has been given, be paid from the fund of the Agency.
21. Indemnity of officers
A member of the Board or the Executive Secretary or any officer or employee of the
Agency shall be indemnified out of the assets of the Agency against any liability incurred
by him in defending any proceeding, whether civil or criminal, if the proceeding is
brought against him in his capacity as a member, Executive Secretary, officer or other
employee of the Agency.
(1) A member of the Board or the Executive Secretary or any other officer or em-
ployee of the Agency shall-
(a) not, for his personal gain, make use of any information which has come to his
knowledge in the exercise of his powers or is obtained by him in the ordinary
course of his duty as a member of the Board or as the Executive Secretary, of-
ficer or employee of the Agency;
(b) treat as confidential any information which has come to his knowledge in the
exercise of his powers or is obtained by him in the performance of his duties
under this Act; and
(c) not disclose any information referred to under paragraph (a) of this subsection,
except when required to do so by a court or in such other circumstances as may
be prescribed by the Board, from time to time.
(2) Any person who contravenes the provisions of subsection (1) of this section
commits an offence and is liable on conviction to a fine of not less than N20,000 or im-
prisonment for a term not exceeding two years or to both such fine and imprisonment.
23. Directives by the President, etc.
The President may give to the Agency or the Executive Secretary such directives of a
general nature or relating generally to matters of pol icy with regard to the exercise of its
or his functions as he may consider necessary and the Agency or the Executive Secretary
shall comply with the directive or cause them to be complied with.
The Agency may with the approval of the President, make such regulations as in its
opinion are necessary or expedient for giving full effect to the provisions of this Act and
for the due administration of its provisions.
In this Act-
"Agency" means the Petroleum Products Pricing Regulatory Agency established un-
der section 1 of th is Act;
"Board" means the Governing Board established for the Agency under section 2 of
"functions" includes powers;
"President" means the President of the Federal Republic of Nigeria.
26. Short title
This Act may be cited as the Petroleum Products Pricing Regulatory Agency (Estab-
lishment, etc.) Act, 2003.
[Section 2 (4).]
SUPPLEMENTARY PROVISIONS RELATING TO THE BOARD, ETC.
Proceedings of the Board
l. Subject to this Act and section 27 of the Interpretation Act (which provides for decision of
statutory body to be taken by a majority of its members and for the person presiding at any
meeting, when a vote is ordered, to have a second or casting vote), the Board may make stand-
ing orders regulating its proceedings or that of any of its committees.
[L.F.N. 2004 Cap. 123.]
2. At every meeting of the Board, the Chairman shall preside and in his absence the members
present at the meeting shall appoint one of their members to preside at the meeting.
3. The quorum at a meeting of the Board shall consist of the Chairman or, in an appropriate
case, the person presiding at the meeting pursuant to paragraph 2 of this Schedule, and ten
other members or 50 percent of the membership of the Board.
4. The Board shall for the purposes of this Act, meet not less than three times in each year
and subject thereto, the Board shall meet whenever it is summoned by the Chairman, and if
required to do so, by notice given to him by not less than seven other members, he shall sum-
mon a meeting of the Board to be held within 14 days from the date on which the notice is
5. Where the Board desires to obtain the advice of any person on a particular matter, the
Board may co-opt him to the Board for such period as it thinks fit, but a person who is a
member by virtue of this subparagraph shall not be entitled to vote at any meeting of the
Board, and shall not count towards a quorum.
6. (1) Subject to its standing orders, the Board may appoint such number of standing and
ad hoc committees as it thinks fit to consider and report on any matter with which the Agency
(2) A committee appointed under this paragraph shall-
(a) consist of such number of persons (not necessarily members of the Board as
may be determined by the Board), and a person, other than a member of the
Board, shall hold office on the committee in accordance with the terms of his
(b) be presided over by a member of the Board.
(3) The quorum of any committee set up by the Board shall be as may be determined by
(4) A decision ofa Committee of the Board shall be of no effect until it is confirmed by
7. The fixing of the seal of the Agency shall be authenticated by the signature of the Chair-
man, the Executive Secretary or any other person generally or specifically authorised by the
Board to act for that purpose.
8. Any contract or instrument which, if made by a person not being a body corporate, would
not be required to be under seal may be made or executed on behalf of the Agency by the
Executive Secretary or by any other person generally or specially authorised by the Board to
act for that purpose.
9. Any document purporting to be a contract, instrument or other document duly signed or
sealed on behalf of the Agency shall be received in evidence and shall, unless the contrary is
proved, be presumed without further proof to have been so signed or sealed.
10. The validity of any proceedings of the Board or of any of its Committees shall not be
(a) any vacancy in the membership of the Board or Committee; or
(b) any defect in the appointment of a member of the Board or Cornm ittee; or
(c) reason that any person not entitled to do so took part in the proceedings of the
Board or Committee.
11. A member of a Committee who has a personal interest in any contract or arrangement
entered into or proposed to be considered by the Committee shall forthwith disclose his inter-
est to the Committee and shall not vote on any question relating to the contract or arrangement.
12. No member of the Board shall be personally liable for any act or omission done or made
in good faith while engaged on the business of the Agency.
[Section 7 (1) (e).]
PROGRAMMES FOR IMPLEMENTATION
PROGRAMME FOR 4TH QUARTER, 2000 - 1 ST QUARTER, 200 I
4th Quarter - 2000
The Nigerian National Petroleum Corporation shall immediately repair and replace all
the faulty facilities at the Atlas Cove Complex which hinder the receiving and pumping of
products to Mosimi Depot.
The Facilities include, but are not limited to, the satellite Depot facilities, vandalised/
ruptured portions of pipelines.
All coastal supplies of Automotive Gas Oil through company nominated vessels should
be stopped immediately.
The Nigerian National Petroleum Corporation shall expand the loading capability of all
marine-fed depots such as Mosimi and Calabar, the expansion shall take cognisance of the
need to massively load products on bridging ex - the depots during the period of pipeline
1st Quarter - 2001
The Nigerian National Petroleum Corporation shall increase the number and undertake a
phased rehabilitation of all associated pipeline equipment, e.g. pumps, generators, loading
arms and metres, fire trucks, valves, etc.
The Nigerian National Petroleum Corporation shall immediately embark on public en-
lightenment campaigns to educate the public on the dangers of vandalisation of pipelines and
other equipment and the campaign shall start immediately and be sustained in the first six
months to prepare the ground for the take-off of the phased reforms.
Federal Government shall establish a Pipelines Management Authority for the manage-
ment of the pipelines and depots both in the pre- and post-privatisation era, which will charge
both private and public users a tariff per throughput litre of products.
PROGRAMME FOR 2ND QUARTER, 2001-3RD QUARTER, 2001
2nd Quarter - 2001
The Nigerian National Petroleum Corporation shall institute a policy of replacement of
aged and obsolete equipment and a programmed and effective preventive maintenance culture.
The Nigerian National Petroleum Corporation shall intensify regular land, sea and aerial
surveillance of critical segments of the pipeline system by a Task Force which shall be
3rd Quarter - 200 1
The Nigerian National Petroleum Corporation shall institute effective and efficient te-
lemetry systems for monitoring oil movement operations nationwide.
The Nigerian National Petroleum Corporation shall be restructured with a view to mak-
ing it efficient and profit-oriented with the provision of a Board of Directors and a Manage-
ment with appropriate empowerment at subsidiary levels.
PROGRAMME FOR 2ND QUARTER, 2001 - I ST QUARTER, 2002
2nd Quarter - 2001
Federal Government shall have all the Refineries privatised and shall encourage the es-
tablishment of private refineries in any part of the country by any individual, company or as-
sociation, indigenous or foreign, ensuring that safety and environment conditions are met.
1st Quarter .. 2002
Federal Government shall design, adopt and implement a1 O-year Master Plan to develop
the petro-chemical sector with adequate regime of fiscal incentives to attract private
No Subsidiary Legislation