WHAT METHODS SHOULD BE TAKEN TO AVOID THE IMPORTATION OF PETROLEUM PRICING IN NIGERIA.
MAT NO: SSC0905121|
OWOYOMI OLUWATOSIN ADEDAPO
Oil products are derived from crude oil and they include petrol, diesel, kerosene, natural gas, bitumen. Oil was discovered in Nigeria in 1956 at Oloibiri in the present Bayelsa State, after a century of searching (Dharam, 1991), Nigeria is the largest oil producer in Africa and has been a member of the Organization of Petroleum Exporting Countries (OPEC) since 1971. In 2011, Nigeria produced about 2.53 million barrels per day (bbl/d) of total liquids, well below its oil production capacity of over 3million bbl/d, due to production disruptions that have compromised portions of the country's oil for years. The Nigerian economy is heavily dependent on the oil sector, which accounts for over 95 percent of export earnings and about 40 percent of government revenues. Crude-oil production and export commenced in Nigeria in 1958. It accounted for 7.1 per cent of total exports in 1961, which was dominated at that time by cocoa, groundnut and rubber, in that order. In 1965, oil had climbed to 13.5 per cent of the nation's export earnings, and by 1970, it had become the leading source of foreign exchange, accounting for 63.9 per cent. By 1979, petroleum sales had completely overshadowed non-oil exports, as it then contributed about 95 per cent of the country's export earnings. So strategic in the petroleum sector to the Nigerian economy that crucial aspects of this sector such as exploration, production, gas utilization, conservation, and petroleum policy and legislation are sensitive economic issues. It is estimated that demand and consumption of petroleum in Nigeria grows at a rate of 12.8% annually. However, petroleum products are unavailable to most Nigerians and are quite costly, because almost all of the oil extracted by the multinational oil companies is refined overseas, with...