AN APPRAISAL OF THE LEGAL FRAMEWORK FOR PETROLEUM PRICING AND DEREGULATION OF THE DOWNSTREAM SECTOR

Abstract

The Nigerian downstream petroleum sector is a critical component of the nation's economy, yet it grapples with inefficiencies; fuel scarcity, corruption, and management lapses. The paper examined the Legal Framework for Petroleum Pricing and Deregulation of the Downstream Sector. The authors explored the need for total deregulation of the downstream sector of the Nigerian petroleum industry to address inefficiencies in the sector to promote an adequate supply of petroleum products through regulatory reforms and by making reference to the experiences of other relatively advanced jurisdictions to strengthen Nigeria’s downstream petroleum sector’s laws. The authors analysed the concept of deregulation and the potential a well-planned and deregulation policy has in influencing the desired goals of product availability and minimal pump prices. The authors further highlighted the important role of leadership in the deregulation of the downstream sector of the Nigerian petroleum industry, arguing that the government establish measures to curb corruption and collusion which might disparage on the successful deregulation of the downstream sector. The authors also investigate the necessity for deregulation of the downstream petroleum sector to tackle shortfalls and to enhance quantities of petroleum commodities in Nigeria. The authors recommend the establishment of an independent body tasked with monitoring the implementation of anti-corruption policies within the petroleum sector and the absolute deregulation of the industry to foster private investments.