Price: 2000 Naira


The study focused on the deregulation of the downstream of Nigeria’s petroleum
sub-sector as an aspect of Rolling back the state in Nigeria. Deregulation of the
downstream of the petroleum sector is occasioned by the removal of subsidies on
petroleum products. This leads to a hike in the pump price of petroleum products
which has brought untold hardship on the people. According to government, it
spends a huge amount of money on subsidizing fuel products. Thus government
resources previously used for subsidy of petroleum products will be used to
undertake more development programmes such as construction of good roads,
clinics, hospitals and good drinking water etc. for the general public. Thus, the
broad objective of the study was to understand the effects of rolling back the state
on the political economy of Nigeria. Its specific objectives were; to examine the
impact of deregulation of the downstream of the petroleum sector on the road
transport and public health sectors of the Nigerian economy within the period
2003-2007. Data for the study were generated through the observations of
primary and secondary sources and interview of respondents. The data were
analysed using tables, percentage and correlation analysis. The social production
theory propounded by Karl Marx and other exponents provided the basis under
which the study was carried out. The framework was applied to the explanation
and understanding of deregulation as a capitalist mode of production in the road
transport and health sectors of the economy. The findings of the study shows that
deregulation of the downstream of the petroleum sector allowed the private sector
owned road transportation system to increase the cost of transport fares anytime
the government announced increase in the pump price of products. An increase in
the cost of road fares translated into increase in prices of goods and services
which ultimately resulted in inflation. Equally the huge amount derived from
petroleum has not been judiciously expended for building and construction of
roads. On the health sector, this has led to poor quality and inadequacy of health
care services provided in public hospitals which in turn has made the private
sector an unavoidable choice for those seeking health care. The fees charged in
private hospitals are expensive and affordable to the rich, with some of them
travelling abroad for medical care while the poor are forced to patronize patent
medicine stores, quack doctors and the use of herbs for health care delivery. The
research recommends that owing to the poor state of social services and
infrastructure, government should suspend the idea of deregulation as this will
lead to increase in cost of petroleum products, cost of essential services and
inflation which will result in hardship on the already impoverished Nigerians.

Get Full Materials


This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy