IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 7 NO. 6 2022
DOI: https://doi.org/10.56201/ijefm.v7.no6.2022.pg36.55

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Oil Subsidy, Corruption Risk, Midstream and Downstream Oil Revenue in Nigeria: Problem, Prospects and Methodology

EFUNTADE, Olubunmi Omotayo, PhD, EFUNTADE, Alani Olusegun, FCIB, ACA.

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Abstract

The exploratory research identified the problem and prospects on the oil subsidy corruption risk and downstream oil revenue in Nigeria. The study focused mainly on the revenue generated from oil refining, storing, marketing, distribution and sale of petroleum products with the purpose of investigating Nigeria’s oil subsidy payments and its effects on the growth of downstream oil revenue and finding out if the level of corruption affects the downstream oil revenue sustainability in Nigeria. It is revealed that the following factors could explain downstream oil revenue and models are conceptualized that landing cost of PMS, poverty index, demand for local consumption, refining capacity and official pump price global oil price and exchange rate variation are probable significant variables in determining the volume of oil revenue in the downstream sector in Nigeria. A quantitative study and methodology are recommended to evaluate the impact of fuel oil subsidy and corruption indices on the dependent variable (downstream oil revenue) with a view to predicting and forecasting a sustainable and dependable oil revenue in refining, storing, marketing and distribution of petroleum products in Nigeria

keywords:

OIL SUBSIDY, CORRUPTION RISK, DOWNSTREAM OIL REVENUE JEL Classification code: H0, E66, H27

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