n CPEEL Monograph Series - Conclusions
|© Publisher:||Centre for Petroleum, Energy Economics & Law (CPEEL)|
|Journal||CPEEL Monograph Series|
|Author||Akin Iwayemi and Adeola Adenikinju|
|Publication Date||Jan 2014|
|Pages||50 - 59|
In the past four decades, the downstream petroleum sector has absorbed tens of billions of dollars of public funds but with no perceptible improvement in the supply fundamentals or an effective and efficient way out of the numerous economic, technical and administrative inefficiencies that characterize this important sector in the economy. The persistent failure of the sector to deliver adequate and reliable supply of petroleum products to end users across the country has questioned the overarching role and control of the government to deliver an efficient and sustainable downstream oil in the country. The entitlement syndrome associated with cheap domestic oil as part of the national cake because Nigeria is an oil producing country has exacerbated the problems of the sector. Price deregulation, which in the last decade has brought about sharp increases in the prices of petroleum products, has brought about a coalition of interest groups opposed to further government moves in the direction of reform.
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