Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Downstream Deregulation Policy and Stability in Petroleum Products in Nigeria: A Case of South-South Region

Odey, Ferdinand Ite (Ph.D) Ebri, Eno Willie (Ph.D) Ojikpong, Christopher Eyo (Ph.D) & Ebiefie, Victor Edet

Abstract

Nigeria economy is almost singularly hinged on crude oil and therefore, highly sensitive to internal and external shocks in the oil sector. This study examined the impact of downstream oil deregulation policy on stability in petroleum products in Nigeria. Survey design was used in the methodology of the study. The hypotheses formulated were tested using ordinary least squares linear regression technique. The study revealed that the downstream oil deregulation policy promotes the availability of petroleum products in the economy. The study also revealed that local refining of petroleum products positively impacts on deregulation of the downstream oil policy in the country. It was further revealed from the findings that the removal of petroleum products subsidy and efficient pricing of petroleum products enhances the deregulation of the downstream oil policy in the Nigerian economy. It was recommended that the government should make petroleum products available through efficient liberalization of the downstream sector, remove subsidies, build more refineries or maintain the existing ones and regulate the prices of petroleum products in the country. Government should get all the four refineries working at all costs. This will help to reduce the huge amount of money spent on refined fuel importation and will be diverted to infrastructural development for the economy.

Keywords

DownstreamDeregulation PolicyStabilityPetroleum ProductsNigeria

References

Akinwumi, F.S, Isuku, E.j. & Agwaranze, D. Q. (2005). University education deregulation: Pros and Cons. In G.O. Akpa, S.U. Udoh and E.O. Fagbamiije (Eds) Deregulating the provision and management of education in Nigeria, Jos: NAEAP Publication, 151-158. Anyadike N. O. (2013). Assessment of the implication of full-scale deregulation of the downstream oil sector on the Nigerian economy: The neoliberalism approach. Journal of Economic Sustainability, 3 (5), 55-61. Ayankola M. (2010). Nigerian can produce 3.7 million bpd of crude oil. The Punch, Thursday, January 7. Ekeinde, E., Adewale, D. Diepiriye, O. & Dumbili, O. (2022). Deregulation of the downstream sector of the Nigerian oil industry and its impact on pump price of petroleum products. 10.2118/211929-MS. Ekundayo, A. & Ajayi, A. I. (2008). The deregulation of university education in Nigeria: Implication or quality assurance. Nebuta 5 (4), 21-28. Gberevbie, D.E., Ibietan, J, Ugochukwu, D. A. & Nchekwube, O. E. (2015). Deregulation policy and development in Nigeria: The petroleum sector experience. Journal of Social Development in Africa, 30 (2), 129-152. Huang, X, Emmanuel, S. & Hossein, H. (2018). Causality between oil prices and tourist arrivals. Stats 1, 134–54. Ibrahim, M. J. (2007). Growth prospects of oil and gas abundant economies: The Nigerian experience. Journal of Economic Studies, 5 (2), 34-51. Ikelegbe, A. O. (2006). Public policy analysis: Concepts, issues and cases. Lagos: Imprint Services. Janda, K., Berry, J. M. & Goldman, J. (1997). The challenge of democracy: Government in America (5th edition). New York: Houghton Mifflin Company. Jiménez-Rodríguez, R. & Sánchez, M. (2004). Oil price shocks and real GDP growth: Empirical evidence for some OECD countries. Working Paper Series No. 362. Maduka, A. & Ihonre, H. (2015). Impact of deregulation of the downstream oil sector on economic growth in Nigeria. International Journal of Economic and Business Review, 3 (4), 19-30. Mark, K. Lsen, A. & Hans T. M. (1994). Macroeconomic responses to oil price increases and decreases in seven OECD countries. The Energy Journal, 4 (2), 44-49. Monday, J. U., Ekperiware, M. C. & Muritala, B. R. (2016). Downstream oil deregulation and Nigerian economy. Ecoforum 5 (8), 2O7-214. Ndem, M. E., Unuafe, B. O. & Egbe, J. E. (2019). Economic impacts of effluent composition of a process industry on the receiving environment: A study of Port Harcourt refining company. Advance Journal of Economics and Marketing Research, 4 (3), 48-60. Nwagbara, E. N. (2006). Organized labour's perspective on the deregulation and privatization policies in Nigeria: A case study of workers in the University of Calabar. Journal of Policy and Administrative Studies, 1(1), 122-139. Odularu, G. O (2008). Crude oil and the Nigerian economic performance. http://www.ogbus.ru/eng. Ojo, M. O. & Adebusuyi, B. S. (1996). The state of the Nigerian petroleum industry: Performance, problems and outstanding issues. CBN Economic and Financial Review, 34. Okafor, L. (2012). Deregulation of the Nigerian downstream oil sector: Keeping faith with a global trend. http://www.pppra- nigeria.org/articledetails.asp?ArticleID=16. Oketola, D. (2010). Marketers will not take advantage of deregulation to hike fuel Prices. The Punch, (Lagos) January 7. Oluleye, F. A. (2005). Deregulating an economy: The theoretical perspective. In A. S. Akpotor, M. E. Omohan, B. O. Iganiga, O. M. Aigbokhaevbolo & A. O. Afolabi (Eds). Deregulation and globalization in Nigeria: Issues and perspectives. Ekpoma: Ambrose Ali University Press, 13-33. Olusola J. O. (021). Deregulation of the downstream petroleum industry: An overview of the legal quandaries and proposal for improvement in Nigeria. DOI:https://doi.org/10.1016/j.heliyon.2021.e06848. Omotosho, B.S. (2019). Oil price shocks, fuel subsidies and macroeconomic instability in Nigeria. International Journal of Economic and Business Review, 6 (3), 35-48. Onyishi, A. O. Eme, O. I. & Emeh, I. E. J. (2012). The domestic and international implications of fuel subsidy removal crisis in Nigeria. Kuwait Chapter of Arabian Journal of Business and Management Review, 1(6), 57.79. Oladesu, O., Olaoye – Osinkolu, Olugbamila, A., Olaniyi, B., and Omokhunu, G., (2011). Fuel subsidy: Employers arm government to avert crisis. The Nation, Monday, December 19, 1-2. Oti, P. A. & Odey, F. I. (2017). Analysis of internally generated revenue and capital expenditure utilization in Cross River State, Nigeria. International Journal of Development and Economic Sustainability, 6 (1), 9-18. Oti, P. A., Eze, F. J. & Odey, F. I., (2016). Nigeria?s revenue profile and the socio- economic development mesh. Research on Humanities and Social Sciences, 6 (20), 54-60. Salaudeen, L., (2011). Concerns over rising unemployment. The Nation, Monday, December 19, 6.

More Articles from INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH

Building National Analytics Capacity: Advances and Future Pathways

Author: Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa, Uzoamaka Iwuanyanwu

Root-Cause and Thematic Analysis for Major Incident Management: A Review

Author: Ifeanyichukwu Jeffrey Okwesa, Uchechi Mary-Linda Unamma, Uzoamaka Iwuanyanwu

Data-Quality and Single-Source-Of-Truth Frameworks for Inter- Agency Reporting: A Review

Author: Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa, Uzoamaka Iwuanyanwu

Human-In-The-Loop Decision Systems: Advances and Future Directions

Author: Funmilayo Ashore-Onisemo, Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey, Okwesa,

Roles of Oil Subsidy Removal on Transportation Cost and Water Factory in Cross River South, Nigeria

Author: Onwuzurike Peter Tobechi, Owoh Akwa Owoh, Unoh Grace Inyang, Umaru Musa