The Deregulation Of Downstream Oil Sector In Nigeria As A Solution To Economic Recovery Of The Country

The Deregulation Of Downstream Oil Sector In Nigeria As A Solution To Economic Recovery Of The Country

Abstract

This study examined the deregulation of the downstream oil painting sector in Nigeria as a nostrum to profitable recovery of the country( An Analysis of 2010- 2015 profitable Programme of Nigeria). In this study the experimenter has find out some of the problems that are facing the deregulation of the downstream oil painting sector in Nigeria, these problems are nonstop increase in petroleum price, failure of petroleum product. All these are the major problems that are facing the deregulation of the downstream oil painting sector which government have to help working this problems by making energy available and controlling the price. Also the experimenter has find out some of the ideal which will also help in the deregulation of the downstream oil painting sector which includes, probing the effect or the deregulation of the downstream oil painting sector on the living norms of the people, also to examine the pre and unrealistic deregulation period and make critical. And to explore the reason why partial deregulation has not yielded the asked result in terms of prices and force. Data collection was also used in the exploration work, data collection is an important aspect of any type of exploration study. The system of data used for this study was primary and secondary sources. The experimenter administered a aggregate of 80 clones questionnaires to both in pastoral areas, from the data the following finding were apparent that a tremendous impact was made by downstream oil painting sector in Nigeria oil painting diligence. Eventually the findings and conclusion in the exploration work were also bandied, showing that without proper operation, control and investment the profit generated from deregulation of the downstream oil painting sector will be embossed by loose governmentofficials.However, it’ll greatly erode the capability of the people to manage with farther price increases on petroleum products, If government decides to force down the deregulation policy as presently conceived. Businesses would be farther disabled to operate under a governance of advanced energy cost, while ease of doing business pointers remains generally negative in the count

TABLE OF CONTENTS

CHAPTER ONE

preface

Background of the study

Statement of the problem

objects of the study

exploration Questions

exploration thesis

Significance of the Study

Limitations of the study

compass of the study

description of Terms

Reference

CHAPTER TWO

Literature Review

General Overview of the Deregulation in Nigeria

Abstract explanation

explanation Behind Government’s Plan to Deregulation

The Applicability of the Deregulation and Important

Challenges of Deregulation

Obstacles and Trend of Deregulation of the Downstream

The Effect of Deregulation of Downstream oil painting Sector

The Impact of Deregulation of Downstream oil painting Sector

The part and profitable Recrimination of the Deregulation

Government Strategy for Deregulation the Downstream

Success Story of Deregulation in other sectors

References

CHAPTER THREE

Research Design and Methodology

Research Design

Area of Study

Population of the Study

Sample and slice ways

Instrument for Data Collection

Validity of Instrument

system of Data Collection

Data Analysis

Anticipated Result

Reference

CHAPTER FOUR

Data donation, Analysis and Discussion of Results

donation Analysis of Data

Testing of thesis

Discussion of Findings

References

CHAPTER FIVE

Summary of Findings, Recommendations and Conclusion

Summary of Findings

Recommendation

Conclusions

Bibliography

Excursus

Chapter One

Preface

Background of the Study

Historically, major petroleum marketing companies were the main sources of petroleum product’s force. The companies transported and distributed the products counting on their distribution and retail outlets. This was an period of deregulation in which Nigerian paid request- determined prices for products. still, this arrangement wasn’t sustainable given that it was dependent on the profit and request imperatives of the oil painting marketers. The country’s profitable conditioning expanded in the seventies similar that private companies could no longer manage with increase demand for products. This redounded in erratic force of petrol and kerosene and eventually acute failure of the product. The deficit was aboriginal and created social and profitable disturbance in the country. This request failure made government to venture into petroleum products marketing and distribution.

The concern by government to overcome this lack of policy and total reliance on oil painting companies led to policy shift towards regulations. Government thus introduced invariant pricing to satisfy domestic demand, strengthen tone- reliance and avoid a situation in which the oil painting companies could hold the country to rescue. The nation witnessed acceptable force of petroleum products over till 2000. later, due to the sustained devaluation of the Naira on account of the perpetration of the Structural Adjustment Programme( SAP) coupled with thenon-maintenance of the refineries, domestic product was soon undermined making it imperative for demand to be met through significances.

The dearths of petroleum products escalated in malignancy of increases in prices of products since 1999. The Olusegun Obasanjo administration on coming on board decided to gradationally withdraw the subvention on petroleum products to allow the mechanics of request forces to take its full course. This again, redounded to frequence increase in petroleum products prices.

Statement of the Problem

Petroleum products inventories have always been problematic for consecutive Governments in Nigeria. With the new popular division, the force and distribution of petroleum products bettered but this was without a frequent price increase in petroleum products. With many months to the end of the Obasanjo’s governance, the unattractive prevalence of petroleum failure surfaced again and one begins to wonder if there’s any result to this problem.

The contemporary passion and pressure that generally characterize petroleum converse is due to unquantifiable losses and mournings it causes in Nigerians. As the 6th largest patron of petroleum, it’s a contradiction that in the once decade, force of all products has been changeable and on sharp decline. Ironically, as force declined, products prices have been on the increase as consecutive governments searched for “ applicable pricing ”. The concerted impact of unreliable and shy force and everlasting price increases have brought innumerous difficulty to the populace and worse too, averted profitable recovery as promised by the present democratically tagged government given that capacity application in the manufacturing sector nose- dives due to dearths of artificial products. Indeed numerous diligence have been impelled to close due tonon-availability of some of these products.

In the shot to break the problem in numerous developing countries, structural reform of petroleum requests has come a critical element of macroeconomic liberalization programs. The part of the government in the petroleum sector is being readdressed, and requests are being deregulated(i.e state interventions similar as special treatments of state- possessed oil painting companies, price controls and monopolies are being broken up). Decreasingly, the private sector is sharing in more competitive terrain. But suddenly, the outgrowth of the deregulation has not been encouraging. There has been nonstop increase in petroleum prices with patient failure of petroleum products. It was anticipated that deregulation would give room for competition which would transfigure to price reduction and excellent force and distribution network. This study is devoted on the evaluation of the deregulation exercise; critically setting its impact on petroleum pricing, consumption and the general living standard of the people.

Objects Of The Study

The end of this study is to estimate partial deregulation exercise that was carried out in the Nigerian downstream oil painting sector.

The specific objects of this study are as follows

To estimate the pattern of petroleum products pricing in Nigeria;

ii. To examine the consumption pattern of petroleum products ahead and after the partial deregulation;

iii. To examine the impact of the deregulation of downstream oil painting sector on petroleum products pricing in Nigeria;

iv. To probe the likely effect of the deregulation of the downstream oil painting sector on the living standard of the people.

Exploration Questions

The study would examine the following questions

What’s the pattern of petroleum products pricing in Nigeria over the times?

ii. How has the deregulation exercise impacted on the consumption pattern of petroleum products in Nigeria?

iii. To what extent does the deregulation trouble of the downstream oil painting sector impacted on petroleum products pricing in Nigeria?

iv. Do you suppose that partial deregulation of the downstream oil painting sector in Nigeria will yield earn profitable recovery?

Expression Of Suppositions

The following suppositions were formulated grounded on the ideal of the study

Hi = indispensable thesis

Ho = null thesis

Thesis One

Hi The deregulation exercise has impacted on the consumption pattern of petroleum products in Nigeria.

Ho The deregulation exercise has not impacted on the consumption pattern of petroleum products in Nigeria.

Thesis Two

Hi The deregulation of the downstream oil painting sector has largely impacted on petroleum products pricing in Nigeria.

Ho The deregulation of the downstream oil painting sector has not impacted on

petroleum products pricing in Nigeria.

Thesis Three

Hi That the regulated downstream sector differs significantly from the

deregulated period.

Ho That the regulated downstream sector doesn’t differ significantly

from the deregulated period.

Thesis Four

Hi That the partial deregulation of the downstream oil painting sector in Nigeria has yield earn profitable recovery of the country.

Ho That the partial deregulation of the downstream oil painting sector in Nigeria has not yield earn profitable recovery of the country.

thesis Five

Hi Partial deregulation of the downstream oil painting sector in Nigeria will yield

more earn profitable recovery.

HO partial deregulation of the downstream oil painting sector in Nigeria will yield

less earn profitable recovery.

Significance of the Study

This study shall be set up useful by all citizens of the country as well as policy makers and individualities affected by the scourge of deregulation. It shall also be set up precious by ideologists and Governmental agencies as well as NGO’s ladened with the responsibility of public citizens ’ exposures, ethnical ethnicities, and scholars with interest in analogous areas of study will inversely find this report veritably useful. The study will also serve as a point of reference to scholars in advanced institutions and as a point of reference for farther studies.

Compass Of The Study

This study shall dissect the Deregulation of the Downstream Oil Sector in Nigeria as a result to Economic Recovery of the Country. The study will foster citizens purposely or unconsciously betray nationalism by beating undeserving cans of support for public office holders in a shot to defend their home, whether the supported person/ action is worth condemning or not.

Description Of Terms

Deregulation This is a process of freeing a trade, a business exertion,

etc from rules and controls.

Downstream This is a positive along a swash which is nearer the sear.

Sector A part of an area of exertion, especially of a country’s frugality.

oil painting subvention plutocrat that’s paid by a government to reduce the cost of services or of producing oil painting so that their prices can be kept low