CHAPTER ONE
1.1 INTRODUCTION
The petroleum oil sector is the major area where Nigeria income emendates. Before the discovery of crude oil, agriculture is the major source of income in this country and it forms the major exporting base in this country then. Right now, Nigeria exports more than 50, 000 barrels of oil a day to other countries in this country, the oil sector is controlled by the federal government under the direct supervision of Nigeria National Petroleum Cooperation, whose immediate chairman is chief fusnso Kupkolukun who succeed Pius Obaseki. The NNPC is vested with the power refine Nigeria crude oil but other petroleum agencies like orient petroleum, cheoron, EIF, Total etc con embark in exploration of land areas that might concern crude and possible extraction. The oil sector is controlled by the federal and this makes them to be the sole monopoly of this sector. Therefore, president Olusegun Obasanjor announced the deregulation policy which not only restricted to the oil sector, but to other sectors of the economy” commercialization and prostration of all the sectors of the economy.
President Olusegun Obasanjor in Lagos on 27th February 2001, Obasanjo said that deregulation would mean the end to the existing subsidy system in the sector. Due to the Non competitiveness of the fuel prices in Nigeria, no investor will establish a refining in the country, said the president, instead, the government will subside the social services and improve publics utilities like education, health, transport, power and water Obasanjo said on the occasion. Nigeria currently spends billions of U.S dollars on subsidization of oil products every year, but still experiences fuel shortages from time to time. So, the aim of this derogation policy is to ensure that fuel shortages are curbed and that the constant labour stricken because of the incessant rise and hike in the fuel prices is also curbed. Nupeng and pengassen are also involved in the regulatory process, because both are indirectly involved in supply of petroleum, thereby possible shortage in fuel supply might be triggering o by the acovgies of nupeng and pengassen.
