Law and Economics of Deregulation in Downstream Sector of the Nigerian Oil and Gas

Abstract

This article examines the downstream sector of the Nigerian oil and gas sector has in recent times, it has being operating at crossroads. With the huge amount of money spent by the Federal Government of Nigeria on subsidizing petroleum products into the country is causing economic dislocation. In remedying this malady, this article examines the policy of the government on total deregulation of the downstream sector from the law and economic perspective. Deregulation is a process of allowing the market forces to be the major determinant of petroleum prices. Law and economics otherwise known as the economic analysis of law is best viewed as a social tool that promotes economic efficiency. This article evaluates the economic efficiency of deregulation in light of existing laws and proposed laws coupled with recent social events. This article reveals arguments for and against deregulation but concludes that the adverse effect of deregulation is not ad infinitum but will bring about self-sufficiency and economic buoyancy.