This research work attempted to evaluate the economic logic behind Nigeria's government policy of deregulation of the oil downstream sector. Thus, this work assessed the effect of deregulation of downstream oil sector on the economic performance of Nigeria using annual time series data from 1981 to 2015. The main focus is on the relationship between changes in oil prices as a result of deregulation and two macroeconomic variables namely; economic growth and public investment expenditure. The main instrument of the data analyses were multiple linear regression models and linear trend model. The results revealed a significant inverse impact of oil price shock on economic performance in Nigeria. Results also revealed a significant positive impact of deregulation on economic performance in Nigeria while the impact was supposedly inverse on non-oil exports. The result of the linear trend model suggested that there is a downward direction of movement between oil price shock and investment expenditure variables. The study recommends that the government should facilitate the maintenance and building of new refineries by interested investors (including those who have not utilized their licenses since 2004). The existing refineries should be appropriately priced and sold to investors who will make them work. The study concludes that the reasons advanced by federal government for the deregulation of the downstream sector of the oil and gas industry fail to add up to the realities on ground.
ANIEKWE, K (2021). Effects Of Oil Price Shocks And Deregulation Of Downstream Oil Sector On The Nigerian Economy. Repository.mouau.edu.ng: Retrieved Feb 08, 2023, from https://repository.mouau.edu.ng/work/view/effects-of-oil-price-shocks-and-deregulation-of-downstream-oil-sector-on-the-nigerian-economy-7-2
KINGSLEY, ANIEKWE. "Effects Of Oil Price Shocks And Deregulation Of Downstream Oil Sector On The Nigerian Economy" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 04 Aug. 2021, https://repository.mouau.edu.ng/work/view/effects-of-oil-price-shocks-and-deregulation-of-downstream-oil-sector-on-the-nigerian-economy-7-2. Accessed 08 Feb. 2023.
KINGSLEY, ANIEKWE. "Effects Of Oil Price Shocks And Deregulation Of Downstream Oil Sector On The Nigerian Economy". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 04 Aug. 2021. Web. 08 Feb. 2023. < https://repository.mouau.edu.ng/work/view/effects-of-oil-price-shocks-and-deregulation-of-downstream-oil-sector-on-the-nigerian-economy-7-2 >.
KINGSLEY, ANIEKWE. "Effects Of Oil Price Shocks And Deregulation Of Downstream Oil Sector On The Nigerian Economy" Repository.mouau.edu.ng (2021). Accessed 08 Feb. 2023. https://repository.mouau.edu.ng/work/view/effects-of-oil-price-shocks-and-deregulation-of-downstream-oil-sector-on-the-nigerian-economy-7-2