FAQs

Frequently Asked Questions

The Subsidy Really Sounds Like A Good Idea

November 24, 2014 // 0 Comments

Subsidy poses a problem to the socio-economic development of the country. As stated above, the subsidy on crude being enjoyed by Nigerians was several billions of naira annually. That amount of money should rather be channeled to developmental projects for the benefit of all. Besides, subsidy even negates fairness and equity. This is so because the subsidy as currently practised in the country favours the elite class much more than the poor. After all, an average elite uses more litres of fuel [...]

What Is Subsidy and How Does It Apply?

November 24, 2014 // 0 Comments

Subsidy means ‘the loss of revenue that should otherwise have accrued to the Federation Account if the crude oil allocated for domestic refining and fuel consumption were to be sold at International prices. With deregulation, the federal government commenced the sale of crude oil to NNPC at the international price as against the former practice of concessionary prices. Through deregulation, the government will now capture its entire take from the sale of crude oil to be channeled into [...]

How Are Marketers Regulated In Such A Free Market?

November 24, 2014 // 0 Comments

The Petroleum Products Pricing Regulatory Agency (PPPRA) was established to superintend the deregulation process and ensure that participants in the downstream sector operate within acceptable limits. With competition, there will be no monopoly. Competition brings out the best in terms of creative response to issues and services provided by stakeholders. The telecommunication industry in Nigeria has changed for good with the advent of Global System of Mobile (GSM) communication. Within two [...]

Past & Present – The Difference

November 23, 2014 // 0 Comments

In the past, government tried either ‘appropriate pricing’ or ‘price adjustment’. Those were mere palliatives and not the solution to the comatose process of supply and distribution of petroleum products in the country. Now that the government has opened up the sector to competition, scarcity will be a thing of the past. The present arrangement will allow for competitive pricing which will break the monopoly being enjoyed by NNPC. Deregulation is indeed a more [...]

Why Does the Government Want to Deregulate?

November 23, 2014 // 0 Comments

The Federal Government wants to deregulate the downstream sector, of Nigerian oil industry in order to: Ensure that petroleum products are made available to the consumers in an uninterrupted manner; Eradicate waste and corruption which are consequences of tightly regulated economy; Ensure that the supply and distribution of petroleum products are orderly and consumer-friendly; Channel money realized from the exercise to development projects that will be beneficial to the majority of the [...]
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