Assessing the Implementation of the Deregulation Policy of the Nigerian National Petroleum Corporation (NNPC) (2003 – 2012)

Abstract

The Nigerian oil and gas sector plays avery dominant role in the nation’s economy with over 90% in 2011 and 98% in 2012 of the nation’s foreign exchange earnings (Ibanga, 2011; CBN, 2012). About 36 Billion barrels of crude oil reserve and 19.2 Billion cubic meters of natural gas is deposited in the country. This paperassesses the implementation of the deregulation policy in Nigeria (2003-2012),with a focus on the Nigerian NationalPetroleum Corporation (NNPC). The study used informed knowledge in providing analysis for the study. The study found out that the two major challenges inhibiting the implementation of the deregulation policy by NNPC are, price control, and effect of global market. The study recommended among others that, for Nigeria to realize its potential and reap the benefits of deregulating the sector, the NNPC must tailor the implementation of the policy in a manner that will take cognizance of the socioeconomic challenges facing Nigerians by recognizing and engaging community help services in communities where exploration takes place.