ABSTRACT
The petroleum sector is an indispensable body in Nigeria economy. It has remained the Nigerian biggest revenue earner. It still brings in more than 80% of the foreign exchange earned by the country. However, this resulted in the shortage of the quantities of petroleum products consumed locally in the country. Hence, the problem of development is generally faced in Nigeria. This work will as well go to show what actually constitute the petroleum subsidy in Nigeria. It will analyze the cost to the government if not removed and the welfare of the local consumers. It will also reveal to a greater extent what effect it has on the GDP of the economy, at its full sustenance, partly to be taken in the issue of petroleum subsidy in Nigeria. The research work used a dummy variable to explain its finds(1 when there is subsidy and 0 when there is no subsidy).The research work however, looks into the impact of petroleum subsidy on the consumption of petroleum products in Nigeria and it was found that there are more consumption of petroleum products with subsidy than without. Among other recommendations the study opines that government should diversify the economy as quickly as possible and direct its positives to other sector of the economy that have been overlooked.
CHAPTER ONE
INTRODUCTION
Petroleum subsidy is one of the most passionate and controversial issue of the Nigeria‘s petroleum industry irrespective of the technical, economic, political aspects and implementation of politics adhering to one pricing system or another would largely hygiene the ultimate pattern of cost and profit sharing of the two major parties concern that is the producer (NNPC) and the consumers.
The momentum generated by the exploitation and exploration of oil has been regarded by many as a "mixed blessing". Nigeria started exploring its petroleum resources in the mid 60's, however, it was until the early 70's that large scale production was realized in Nigeria and by May 1970, had entered the league of the largest ten oil producers and by1973, oil accounted for over 80% of our foreign exchange earnings.
The presence of petroleum and the greater spending power which followed has no doubt acted as a catalyst in Nigeria‘s economic development constraints-finance. Consequently, however, it has given rise to the planning executive and completion of some worthwhile project and has given a stronger "twice" to Nigeria in international politics.....
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Item Type: Project Material | Size: 86 pages | Chapters: 1-5
Format: MS Word | Delivery: Within 30Mins.
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