Deregulation of the downstream petroleum industry: An overview of the legal quandaries and proposal for improvement in Nigeria

Abstract

The study investigates the necessity for deregulation of the downstream petroleum sector to tackles shortfalls and to enhance quantities of petroleum commodities in Nigeria. The objective is to boost proficiency in the industry via governance, statutory transformations and vigorous business competition by learning from other advanced countries' skills to transform and fortify the downstream oil industry laws. The study embraces a conceptual legal approach utilising existing literature to aid a doctrinal legal study technique. The research also utilizes primary and secondary founts of legislations, such as, constitutional and case laws. The finding of the research is the absolute authority of the government in the industry and incongruous valuing of oil commodities which made the industry unappealing to financiers to found private refineries that will ensure adequate supply of petroleum and reasonable profits on their investments owing to excessive regulation of the industry by the government. The study designed a model to halt continuous increment in the fuel price and to ensure efficient downstream petroleum industry. The study concludes with the recommendations, for instance, the necessity of high-tech fusion of policies and encouragements for investment in the downstream to boosts swift enactment of the awaiting Petroleum Industry Governance Bill 2017 and absolute deregulation of the industry to foster private investments and to halt subsidy disbursements being a new fountain of corruption.