Effects of Oil Price Shocks and Deregulation of Downstream Oil Sector on the Nigerian Economy

Effects of Oil Price Shocks and Deregulation of Downstream Oil Sector on the Nigerian Economy

Project / Seminar Material
Reference ID: PS-8463-TM

DEDICATION

This research material titled “Effects of Oil Price Shocks and Deregulation of Downstream Oil Sector on the Nigerian Economy” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Industrial Relations and Personnel Management (IRPM), Book Authors and Profound Scholars of existing or related project material on “Effects of Oil Price Shocks and Deregulation of Downstream Oil Sector on the Nigerian Economy” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

TABLE OF CONTENTS

PRELIMINARY PAGES

CHAPTER ONE

INTRODUCTION

    CHAPTER TWO

    LITERATURE REVIEW

    • 2.1 Introduction
    • 2.2 Conceptual Review
    • 2.3 Theoretical Framework
    • ⋮
    • 2.4 Empirical Studies

    CHAPTER THREE

    RESEARCH METHODOLOGY

    • 3.1 Introduction
    • 3.2 Research Design
    • 3.3 Population of Study
    • 3.4 Sampling and Sampling Technique
    • 3.5 Validation of Research Instrument
    • 3.6 Method of Data Collection
    • 3.7 Method of Data Analysis
    • 3.8 Questionnaire Administration
    • 3.9 Ethical Consideration
    • 3.10 Statistical Analysis

    CHAPTER FOUR

    DATA ANALYSIS, RESULT AND DISCUSSION

    • 4.1 Introduction
    • 4.2 Presentation and Analysis of Data
    • 4.3 Re-statement of Research Questions
    • 4.4 Test of Hypotheses
    • 4.5 Discussion of Findings

    CHAPTER FIVE

    SUMMARY, CONCLUSION AND RECOMMENDATION

    • 5.1 Introduction
    • 5.2 Summary of Findings
    • 5.3 Conclusion
    • 5.4 Recommendation
    • 5.5 Suggestion for Further Study

    REFERENCES

    APPENDIX A - “QUESTIONNAIRE”

    ABSTRACT

    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 thatthe 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.

    Effects of Oil Price Shocks and Deregulation of Downstream Oil Sector on the Nigerian Economy

    CHAPTER ONE

    Background of the Study

    In the beginning Nigeria largely operated an agriculture-driven economy. It cultivated major cash crops such as cocoa, groundnuts, palm oil, cotton, rubber and cashew nuts for export. The regional governments thrived on these, as well as solid minerals, cattle rearing, fishing, and other forms of livestock production which also fetched incomes.Though crude oil had newly been discovered in commercial quantity it wasn’t a major revenue earner for the government. Suddenly, it became a major source of income and indeed a game changer. It accounted for more than 80 per cent of the nation’s budget revenues and over 90 per cent of its foreign exchange earnings (Isangediok, 2016).

    With the windfall, the government altered its initial policies that had been agriculture driven, and with enormous resources at its disposal, it indulged its fancies which were the importation of anything and everything. It abandoned the hitherto mainstay of the economy, became import-dependent, encouraged consumption patterns that altered contempt for local products and a strong desire for white collar jobs. That sounded the death knell on agriculture.

    Clearly, before the Nigerian civil war, crude oil was not a dominant commodity. The economy did not suffer from the Dutch Disease- the crowding out of the traditional export sector by a new booming export sector and the non-tradable goods sector.

    …

    CHAPTER TWO

    2.0 Literature Review

    2.1 Introduction

    This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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