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THE EFFECT OF DEREGULATION OF THE OIL SECTOR ON THE NIGERIAN ECONOMY


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THE EFFECT OF DEREGULATION OF THE OIL SECTOR ON THE NIGERIAN ECONOMY

ABSTRACT

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 were stated and literature like magazine, textbooks, information from the internet, newspapers and questionnaires were prepared, and used in order to effectively and critically examines this issues and how it affects the general public with a view of making recommendation on how best to ensure the effective implementation of the policy. This project provides a background information of the topic of discussion with the purpose of assessing the effects of deregulation of oil sector on the Nigerian economy and examines the reasons, problems and solutions to deregulation. In an attempt to carryout this investigation, the study centred around the down stream oil sector with specific reference to the Nigerian economy

TABLE OF CONTENT

CHAPTER ONE      

Introduction

1.1              Background of study

1.2              Statement of problem

1.3              Purpose of study

1.4              Scope of study

1.5              Significance of study

1.6              Hypothesis of study

1.7              Limitation of the study

CHAPTER TWO      

Literature Review

2.1              Meaning of deregulation

2.2              Modes of deregulation

2.3              Theories of deregulation

2.4              Review of privatization

2.5              Review of achievement of the deregulation in Nigeria

2.6              The effect of deregulation on the Nigeria economy

2.7              Review of possible solution to the problems of deregulation

CHAPTER THREE  

Methodology

3.1              Research Design

3.2              Area of study

3.3              Population/Sample

3.4              Research Instrumentation

3.5              Administration and collection of data

3.6              Procedure of data analysis

CHAPTER FOUR    

Presentation and discussion of results

4.1              Data presentation

4.2              Analysis of data

CHAPTER FIVE     

5.1              Summary of findings

5.2              Conclusion

5.3              Recommendation

REFERENCES        

QUESTIONNIARE               

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

            The economic system practiced by any country determines the type of economic policy that country produces, that is determines the monopoly of power of power in production and distribution activities with special reference to the ownership, decision making as well as incentive structure operating in the country. Karl Polory (1964) distinguishes three (3) main types of economic system as the traditional (subsistence) planned (command) and market economy. However, the field of comparative economic system breaks the above categories into the capitalism, socialism and communism.

            The economic system operative in Nigeria are basically the capitalism, socialism and communism system. But with the collapse of the communism and socialism economic policies in 1986 to give rise to a unipolar economic system-capitalism the policy of “deregulation” has been found expedient to implement.

            This policy (deregulation) was first mooted during the military era but was given fillip by the present administration.

1.2       STATEMENT OF PROBLEM

            The problems surrounding the deregulation of oil sector which this research topic aims to investigate are:

Does deregulation affect the price of petroleum?

Does deregulation affect the price of goods and services?

Does deregulation encourage the growth of the economy?

Does deregulation improve the standard of living of the people?

1.3       PURPOSE OF THE STUDY

            The major objectives of this study are to access

1)      The effects of deregulation of the oil sector on the Nigerian economy.

2)      The season and problems of deregulation of the Nigeria oil sector.

3)      To proffer solution based on findings on the study that will be useful for deregulation policy and achievement of stable balance of payments.

1.4       SCOPE OF THE STUDY

            The scope of this project will centre around the deregulation of the down stream sector as it affects other sectors of the economy with specific reference.

1.5       SIGNIFICANCE OF THE STUDY

            This study is significant in the sense that it looks into the deregulation of the Nigeria oil sector as a means of liberalizing the economy and encouraging competition hence, this study is beneficial to both academicians and non academicians as it will enable them know, and it will also suggest solutions to some of the problems associated with the policy.

1.6       HYPOTHESIS OF THE STUDY

To empirically carry out this research, the following hypotheses have been formulated for testing.

a)      Ho 1: deregulation of the oil sector does not significantly affect the pump price of petroleum products.

b)      Ho 2: deregulation of the oil sector does affects significantly the pump price of petroleum products.
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