An Appraisal Of The Deregulation Of Petroleum Products Prices And Its Impact On The Nigerian Economy

📄 Project Abstract

The oil boom of the 1970s transformed Nigeria into an oil rich state. It provided the financial base for huge public sector investment programmes at all levels of government. Apparently with this transformation, petroleum became the most important sector of the Nigerian economy. It accounts for more than 90% of foreign exchange earnings, three-quarters of federal revenue and some 20% of GDP. Hence, successive Nigerian governments used proceeds from oil revenue in the construction of capital projects, salary increases and heavy subsidization of goods and services. To add insults to injury governments officials perceived Nigeria's oil revenue as an avenue where they could get rich by corrupt means. The 1980s were not particularly blissful for Nigeria in terms of wealth whose international price collapse precipitously. Nigeria was not prepared to absorb these shocks. Consequently dislocations on Nigeria's economy became inevitable. This ugly scenario was exacerbated by acts of embezzlemen...