See below for the abstract, table of contents, list of figures, list of tables, list of appendices, list of abbreviations and chapter one. Partial deregulation has however been in place some years before 2003. Oil and injustice in nigeria, amnesty international, november 2005. Nevertheless, it is necessary to carry out an evaluation of the deregulation as. As expected, public opinion about deregulation in nigeria covers a wide spectrum, and.
Jan 14, 2018 according to him, dappma has for the past 10 years actively canvassed a complete deregulation of the downstream sector of the nigerian oil and gas industry with its attendant benefits for the. An analysis of 2010 2015 economic programme by those in charge of the formulation of policy and its implementation. The political economy of oil deregulation in nigerias fourth. Effects of oil price shocks and deregulation of downstream.
As expected, public opinion about deregulation in nigeria covers a wide spectrum, and cuts across all sides of the argument. Price deregulation is fundamental to the growth of the downstream oil sector. They expressed dissatisfaction over the huge amount of money spent. Benefits of deregulation of downstream oil and gas.
Download the complete industrial relations and personnel management project topic and material chapter 15 titled effects of oil price shocks and deregulation of downstream oil sector on the nigerian economy here on projects. By the 1990s, the oil sector was losing ngn50 billion usd322. Issues, challenges and prospects 16 3 the impact of the fuel subsidy removal in the downstream sector of the oil industry on nigerias development 45 4 democracy, mercantuism and deregulation. Government set to deregulate oil sector as scarcity persists. Petroleum marketers want full deregulation of downstream. The study seeks to investigate the effect of the deregulation on the prices and consumption of petroleum products as well as its impact on the living standard of nigeria. Nigerias downstream oil industry has four refineries with a approximate capacity of 438,750 bbld. Oil and gas companies are facing an increasingly complex environment in nigeria with price volatility, changing investment drivers and uncertain regulatory structures. In recent years, deregulation of the downstream sector of the oil and gas industry has become a controversial issue in nigeria. The economics of privatizing and deregulating the nigerian.
The us and western europe account for bulk of nigeria s oil exports. With the dwindling revenue from agriculture, the petroleum sector has become the mainstay of the nigerian economy. Deregulation of t he downstream secto r of the nigerian petroleum industry, as co nceived in 20 03, involved the removal of government co ntrol on petroleum products prices and the remova l. Ibanga, 2011 nigeria s proven oil reserves are estimated by the. Deregulating the downstream sector of the oil industry. Uniprojects aim of providing impact of deregulation of the downstream oil sector on the nigerian economy project research material is to reduce the stress of moving from one school library to. The nigerian petroleum industry established since the first significant crude oil. Deregulation of the down stream petroleum sector refers to the reduction, or removal of government control, rules and regulations that restrain free operational activities in the sector. We then provide a political economy framework for understanding the evolution of the nigerian oil industry. An analysis of 20102015 economic programme of nigeria background of the study historically, major petroleum marketing companies were the main sources of petroleum products supply. The issue of deregulation of the nigerian downstream petroleum sector. The most productive region of the nation is the coastal niger delta basin in the niger delta or southsouth region which encompasses 78 of the 159 oil fields. Deregulation of the downstream oil sector in nigeria. Jun 16, 2017 abuja the federal government, yesterday, ruled out total deregulation of the downstream sector of the petroleum industry.
Most of nigerias oil fields are small and scattered, and as of. Dec 29, 2011 this book is an in depth analysis of the deregulation of the downstream oil sector in nigeria. Those supporting deregulation argue that deregulation of the downstream oil and gas industry would help government to eradicate fuel scarcity and ensure constant fuel. The book which uses a multidisciplinary approach xrayed the cacophony of official reasons given by government to justify its fervent drive towards deregulation even though the requisite macroeconomic policies that would make deregulation to flourish were not put in. The privatisation of public corporations often referred to as state owned enterprises s. Deregulation of the oil and gas industry in nigeria.
Aug 03, 2017 effect of deregulation of the oil sector on the nigerian economy. Oct 09, 2017 this study examined the deregulation of the downstream oil sector in nigeria as a panacea to economic recovery of the country an analysis of 20102015 economic programme of nigeria. A shortage of skilled labour, general rising cost and higher stakeholder expectations are all common features in the industry. Jul 07, 2012 the rising crude oil prices, deteriorating exchange rate, and fiscal challenges facing the government required a change in policy. May 10, 2016 we need to move quickly to ensure the passage of the pib to provide a vibrant legal and regulatory framework for the oil and gas industry. What informed the government deregulation of the downstream oil and gas industry and if it is the only solution in an economic environment such as nigeria. The petroleum sector should be fully deregulated and. The political economy of oil deregulation in nigerias.
In what way can government encourage the private sector to fully participate in the downstream oil and gas deregulation exercise. Aug 03, 2017 deregulation of the downstream oil sector in nigeria as a panacea to economic recovery of the country. Lagos stakeholders in oil and gas industry yesterday implored president muhammadu buhari to consider total deregulation of the nations downstream sector of the petroleum industry, saying that the development would unlock the huge private investment potentials in the sector, and also stimulate sustainable growth therein. It was found that the deregulation and privatization of the oil and gas industry will usher in sustainable. In 2016, the nigeria upstream sector of the oil and gas industry was challenged by. Deregulation of the downstream sector of the oil industry in. The deregulation of the downstream oil sector in nigeria. To examine the impact of the deregulation of downstream oil sector on petroleum products pricing in nigeria. The study will foster citizens consciously or unconsciously betray patriotism by beating. This study examined the deregulation of the downstream oil sector in nigeria as a panacea to economic recovery of the country an analysis of 20102015 economic programme of nigeria. Effect of deregulation of the oil sector on the nigerian. The nigerian oil industry is divided into two sectors. Deregulation of downstream oil and gas industry business essay.
Deregulation of the downstream petroleum subsector. Government set to deregulate oil sector as scarcity. Moreover, the oil sector needs to be made efficient and to contribute optimally to the growth of the economy. The deregulation of downstream oil sector in nigeria as a solution to economic recovery of the country includes abstract and chapter one, complete project material available the deregulation of downstream oil sector in nigeria as a solution to economic recovery of the country an analysis of. Deregulation of the downstream sector of the oil industry.
We show that both downstream and upstream oil sectors in nigeria started out deregulated and. Introduction and synopsis 1 2 deregulation of the nigerian downstream oil sector. The nigerian government has presently embarked on full deregulation of the downstream sector of the oil and gas industry. The companies transported and distributed the products relying on their distribution and retail. Editorial the debate on the deregulation of the downstream sector of the petroleum industry continues to rage, to the extent that volumes have been said and written about it. Nigeria deregulates downstream oil sector, petrol to sell for. According to him, dappma has for the past 10 years actively canvassed a complete deregulation of the downstream sector of the nigerian oil and gas industry with its attendant benefits for the. The independent petroleum marketers association of nigeria ipman and depot and petroleum products marketers association dappma have called for the total deregulation of the downstream sub. This study began with a historical background of deregulation, government motives and the benefits the deregulation of downstream oil and gas industry will deliver to nigerians. Es 11, is a relatively recent phenomenon in nigerias political and economic history. This week has shown some aspects of the absurd, and also, disdainful impunity. Fg rules out complete deregulation of oil sector vanguard news. Deregulation of t he downstream secto r of the nigerian petroleum industry, as co nceived in 20 03, involved the removal of government co ntrol on petroleum products prices and the remova l of r.
This does not mean a compete elimination of the laws that govern smooth operation of activities in the down stream oil or petroleum sector. Public regulation of the oil and gas industry in nigeria. Executives with the theme current economic reforms in nigeria. Some nigerians hold the view that deregulation cannot be complete, whether in the downstream sector of the nigerian petroleum industry, or indeed, in any other sector of the national economy 1. Feasibility report on downstream oil business nigeria.
Issues, challenges and prospects 16 3 the impact of the fuel subsidy removal in the downstream sector of the oil industry on nigeria s development 45 4 democracy, mercantuism and deregulation. The purpose of this study is to examine the perception of nigerians on the deregulation and privatisation moves of the government in the oil and gas industry in nigeria. It is the 10th largest oil producer in the world and the third largest in africa. The downstream sector of the nigerian petroleum industry may witness deregulation in the nearest future due to forces such as. The nigerian oil and gas industry can be categorized into two main subsectors, namely, upstream and downstream sectors. The new face of nigerias oil industry, october 10, 2005. Deregulation and privatisation of the upstream and. A shortage of skilled labour, general rising cost and higher stakeholder expectations are all. This research work examines the effect of deregulation of the oil sector on the nigerian economy, it examines the definition, reasons modes, theories, problems as well as the solution to deregulation and its relation to privatization policy in the course of carrying out the investigation, hypothesis. We need to move quickly to ensure the passage of the pib to provide a vibrant legal and regulatory framework for the oil and gas industry. Petroleum minister confirms oil sector deregulation to take off in few days.
Deregulation of the downstream oil sector in nigeria as a. The book which uses a multidisciplinary approach xrayed the cacophony of official reasons given by government to justify its fervent drive towards deregulation even though the requisite macroeconomic policies that would make deregulation to flourish were not put in place. Petroleum marketers want full deregulation of downstream sub. Pdf deregulation of the downstream sector of the nigerian. Petroleum minister confirms oil sector deregulation to take.
Oil revenues account for about 95% of nigerias foreign exchange earnings. It would also be an invaluable tool for students, academic, institutions and individuals that want to know more about the deregulation of the downstream sector of the nigerian oil industry. The federal government has announced a full deregulation of the downstream sector of the nigerian petroleum industry, pushing the price of petrol to about n145 a litre. Impact of deregulation of the downstream oil sector on.
This study examines economic rationality behind deregulation of the downstream sector of the nigerian oil industry. We show that both downstream and upstream oil sectors in nigeria started out deregulated and that regulation came through three streams. The nigerian oil refining capacity has increased by 63% between 2010 and 2018. However, due to opecs earlier policy in 1968 on public sector participation in oil companies to the tune of 5 percent, nnoc and federal ministry of mines and power were. Benefits of deregulation of downstream oil and gas economics. Militant group threatens to destroy oil industry, washington post, september 23, 2005. Oil marketers, sunday, accused the federal government, especially regulatory agencies in the nigerian petroleum industry of fuelling uncertainty and not providing clarity on policies in the. Scope of the study this study examines economic rationality behind deregulation of the downstream sector of the nigerian oil industry. In this paper, i intend to focus on the downstream sector as it has a great impact on the lives of all nigerians. Oil marketers canvass for total deregulation of petroleum. Nigeria has an abundance of natural resources, especially hydrocarbons. Nigeria deregulates downstream oil sector, petrol to sell. The perception of nigerians on the deregulation and.
Deregulation of the downstream sub sector would enthrone. Assessment of the implication of full scale deregulation of. Some factors may trigger deregulation in petroleum sector. Nigeria has a total of 159 oil fields and 1481 wells in operation according to the department of petroleum resources. This book is an indepth analysis of the deregulation of the downstream oil sector in nigeria. Countries opec and in the same year the nigeria national oil corporation nnoc was formed to carry out mining and marketing of oil products within the petroleum industry. Many have offered different perspectives and motives for the government deregulation of the oil and gas sector in nigeria, yielding different opinions and two schools of thought. Deregulation and privatisation of the upstream and downstream oil. Eghosa osa ekhator abstract nigeria operates a command and control regulatory framework in the oil and gas sector.
To investigate the likely effect of the deregulation of the downstream oil sector on the living standard of the people. This study shall analyze the deregulation of the downstream oil sector in nigeria as a panecea to economic recovery of the country. Deregulation and privatisation of the upstream and downstream. Assessment of the implication of full scale deregulation. However, at issue is the stiff resistance which the agenda has encountered from interest groups. The battle dates back to 2003, when the government made the first move at full deregulation of down stream sector. Deregulation of the downstream subsector would enthrone. Please, sit back and study the below research material carefully. The issue of deregulation of the nigerian downstream petroleum. Effect of deregulation of the oil sector on the nigerian economy. The legal framework regulating the oil and gas sector in nigeria covers a. Oil and gas constitute about 90% of nigerias foreign exchange earnings and 83% of its gdp. Nigeria is one of the leading world oil producers producing about 2. The oil and gas industry is strategic to national development and growth in nigeria.
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