n CPEEL Monograph Series - Introduction
|© Publisher:||Centre for Petroleum, Energy Economics & Law (CPEEL)|
|Journal||CPEEL Monograph Series|
|Author||Akin Iwayemi and Adeola Adenikinju|
|Publication Date||Jan 2014|
|Pages||1 - 7|
The strategic role is incontrovertible that the downstream sub-sector of the petroleum industry plays in economic growth, sustainable development and national security in Nigeria, Africa's largest economy and the most populated country, spread over almost 1 million square kilometres. Therefore, it is understandable that when the Federal Government decided in the early 1970s to take over the 'commanding heights of the economy', following the unprecedented large government revenue inflows from the exports of crude oil, the downstream petroleum sector became a prime target of attention. Since Nigeria became a major world net exporter of petroleum in the 1970s, five major policy objectives have been explicitly or implicitly pursued. These objectives are: (i) the provision of inexpensive and 'affordable' petroleum products (petrol, kerosene and diesel) to all consumers through price regulation; (ii) uniform product pricing regime as a mechanism to spread the benefit of petroleum exploitation to all citizens despite locational differences; (iii) the insulation of domestic consumers from price fluctuations in the world oil markets through price regulation; (iv) meeting the domestic demand for refined products in a rapidly growing economy; and (v) value addition through the export of refined products and eventually making Nigeria the regional hub for petroleum refining and export.
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