LEGAL AND ECONOMIC FRAMEWORK OF THE DEREGULATION OF THE NIGERIAN DOWNSTREAM OIL AND GAS SECTOR

Abstract

The crude oil business is without doubt the most active, lively and planned industry of nation’s economy. The deregulation of the downstream sector has been a long-time issue that has not been resolved in Nigeria. Nevertheless, notwithstanding the profits, the oil sector is overwhelmed by many issues which the federal government thinks that deregulation is the solution. The major problem with deregulation of the downstream oil sector in Nigeria is the fact that the legal framework has been bedeviled with so many inadequacies which has led to difficulties in the implementation. The main aim of this study is to examine the legal framework and its inadequacies on the deregulation of the Petroleum downstream sector in Nigeria. The work also explored the economic policies of deregulation on the entire country. The work adopted the doctrinal research methodology in the analysis of the legal framework on deregulation of the downstream oil sector in Nigeria. It is recommended in this work that the current government in Nigeria should review its deregulation policies and execute the provisions of the newly enacted petroleum industry act so as to ameliorate the sufferings experienced by Nigerians because of the current deregulation policies. It is concluded in this study that the downstream deregulation of the petroleum sector in Nigeria, there is yet too much economic development in agriculture, health and education. Conclusively, deregulation of the Nigerian oil and gas industry cannot bring economic succour to the citizens except unfitting prices of petroleum products, oil smuggling, corruption and fraud, amongst others are effectively handled.