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Article Information:
Policy of Deregulation and Liberalization of the Downstream Oil Sector in Nigeria: The Implication on the Nigerian Economy in the 21st Century
S.O. Uhunmwuangho and Stanley Aibieyi
Corresponding Author: S.O. Uhunmwuangho
Submitted: July 17, 2012
Accepted: August 15, 2012
Published: September 20, 2012 |
Abstract:
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The focus of this study is on the over-dependence on oil as the mainstay of Nigeria. We are in the days of debate. The somehow chaotic Nigerian political terrain has thrown up several challenges, has thrown up issues, many issues that are subjects of debate. Since the emergence of the nascent democracy in 1999, this nation has witnessed several deregulations of oil downstream for which few Nigerians has benefited from it and majority of others are languishing in abject poverty. Starting from January 1, 2012, the Federal Government has stopped subsidizing Premium Motor Spirit and jacked up the price from N65/L to a minimum of N141. In some states, retailers dispense it at N160/L and there is already, widespread anger and resentment against the policy across the country. Therefore, any break in its chain of availability and price rationality, automatically follows a negative effect on the living standards of the citizens as their economic life shift downwards. An increase in fuel price essentially leads to increase in the cost of transportation of both persons and goods, and the final consumer bears the brunt through the purchasing of domestic food items or necessities. The increase in fuel will always lead to higher cost of production, a burden consumers will have to bear too. Landlords definitely increases house rents while workers agitates for higher wages. These have always provoked industrial unrest which has a negative impact on the economy. Without bias, a general increase in prices of goods and services (any time) reduces the standard of living of Nigerian and more people will be dragged into the bracket of poverty line living below one dolor per day. These Nigerians have suffered prior to the democratic governance from 1999 to date. Democratic governance with the underlying emphasis on the alleviation of the citizenry to realize the ‘common good’ has not taken root in the popular consciousness of Nigerians. Everyone appears to be for himself. The thrust of this study therefore, is to investigate the recurring decimal of flawed political and economic woos with the Federal Government announcement of fuel subsidy early 2012 with a view to pinpoint its nature, form, causes and proffer solutions for Nigeria democracy to strive.
Key words: Deregulation, economy, exorbitant, government, landlords, subsidy,
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Cite this Reference:
S.O. Uhunmwuangho and Stanley Aibieyi, . Policy of Deregulation and Liberalization of the Downstream Oil Sector in Nigeria: The Implication on the Nigerian Economy in the 21st Century. Current Research Journal of Economic Theory, (4): 112-119.
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ISSN (Online): 2042-485X
ISSN (Print): 2042-4841 |
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