Contending Issues in the Niger Delta Crisis of Nigeria - Journal of ...

Chapter IX: The Politics and Policies of Oil Deregulation in Nigeria:
Implications and Policy Suggestions
itself and will unlikely not play out, but rather expects a one-time
jump in overall inflation, which needs not become perpetuating, the
reality has been far from this predictions.
It is obvious Nigeria has joined the bandwagon of petroleum
product prices deregulation without first putting in place the
necessary infrastructure and social framework to support the policy.
It is unfortunate the situation continues to persist against the
expressed wishes of the Nigerian people and in the face of the social
and economic dislocation it has resulted because of the deep-seated
vested interests that have captured the petroleum industry in the
country.
The downstream sector today is characterised by all manner of
arbitrariness and favouritism. Throughout charges continue to be
imposed on consumers by the NNPC even when pipeline supply of
products to depots across the country has virtually ceased for years.
Major marketers continue to be granted financing charge on the
pricing template, even when products are supplied to them on credit
and dealers lift products from them on the basis of advance payment.
Favoured independent marketers continue to act as middlemen
between the NNPC and other independent marketers, with the
favoured ones earning a premium of as much as N3 per litre funneled
through them. It is the final consumers that bear the burden of these
ridiculous charges and mark-ups.
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