Nigeria is blessed with
vast capacities of oil and is one of the largest fuel exporters. This has
generated billions of dollars in revenues over the last years since oil was
found in Nigeria.
As seen in most developing
countries, this has not translated into an enriched economy for the country.
Instead, through inefficiencies, corruption, abuse of powers, mismanagement,
smuggling, bureaucratic bottlenecks and excessive subsidizing, the supply of
refined crude oil in the country has virtually collapsed.
The Nigerian oil industry
is divided into two sectors; the upstream sector, which deals with Exploration
and Production and the downstream sector, which deals with refining of crude
oil for domestic consumption. The government of Nigeria has decided to emulate
other developing and developed nations by privatizing and liberalizing the
country’s downstream sector which was previously managed by the Nigerian
National Petroleum Corporation (NNPC) on behalf of the government. The Nigerian
government has decided to go ahead with the policy even against widespread
disapproval on the part of ordinary citizens.
The deregulation policy has
been globally embraced by several countries, in order to diminish public sector
dominance and for developing a liberalized market while ensuring adequate
supply of products. These other countries plan and map out an effective policy
response which transcended into full deregulation. The economic reforms of the
government have become rather imperative since they are geared towards reviving
the ailing sectors. The precedence of some sectors that have been fully
deregulated and their achievements were so remarkable that Nigerians had
forgotten the scares of the initial experiences.
If Nigeria should borrow a
leaf from these nations and allow the downstream sector to be fully deregulated,
we are sure to have a success story to tell eventually. Otherwise, Nigeria
becomes an onlooker in the policy of oil producing nations. As the recent
events unfold, deregulation becomes inevitable. We understand that there is no
point running away from the grasping reality, what should be done is that
collective efforts should be made to face the challenges stoically than posting
the evil day that will most likely befall us. If there must be deregulation, let
it be for the building up of the nation and not to further compound the
problems of the masses.
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