The Effects of Rolling Back State Frontiers on the Development of Nigeria’s Economy (2003 – 2007)

Abstract

Abstract The study focused on the deregulation of the downstream of Nigeria’s petroleum sub-sector as an aspect of Rolling back the state in Nigeria. Deregulation of the downstream of the petroleum sector is occasioned by the removal of subsidies on petroleum products. This paper is adapted from my Ph.D research work at the University of Nigeria, Nsukka on rolling back the state. The objective was to examine the impact of deregulation of the downstream of the petroleum sector on the road transport sectors of the Nigerian economy within the period 2003-2007. Data for the study were generated through the observations of primary and secondary sources. The data were analysed using tables, percentage and correlation analysis. The findings of the study shows that deregulation of the downstream of the petroleum sector allowed the private sector owned road transportation system to increase the cost of transport fares anytime the government announced increase in the pump price of products. An increase in the cost of road fares translated into increase in prices of goods and services which ultimately resulted in inflation. Equally the huge amount derived from petroleum has not been judiciously expended for building and construction of roads. The research recommends that government should monitor the execution of road contracts to guard against none and poor delivery of jobs.