Legal Analysis of the Deregulation of the Nigerian Downstream Petroleum Industry and Proposal for Development

Abstract

The study seeks to explore the need for deregulation of the downstream sector of the Nigerian petroleum industry and to address the various inefficiencies in the sector to promote adequate supply of petroleum products in Nigeria. The aim is to enhance efficiency in the sector through institutional and regulatory reforms, to promote healthy competition by making reference to the experiences of other relatively advanced jurisdictions to refocus and strengthen Nigeria's downstream Petroleum sector's regulations. The work adopts a conceptual approach relying on extant literature with the application of the doctrinal legal research method. The study also makes use of primary and secondary sources of laws such as statutory and judicial authorities. A key finding is the overbearing presence of the federal government in the sector and inappropriate pricing of petroleum products which have made the sector unattractive to investors to establish private refineries that will guarantee adequate supply of petroleum products and fair returns on their investments due to excessive regulation.