Labour and Economic Reforms in Nigeria; Case Study of Federal Government Deregulation of Petroleum Prices (1999-2005)

ABSTRACT 

The poor performance of Nigeria’s oil sector has affected the socioeconomic development of the country. This has made the government to formulate a deregulation policy to reform this ailing sector of the economy and to boost production and performance. However to understand the acceptability of this policy by organized labour, this study becomes very important. In this study three research questions were raised they include; why is government deregulating the petroleum sub-sector of the economy? What have been labour’s attitude to deregulation of petroleum products prices by government? Will deregulation of petroleum products prices lead to improvement in the economy? Interview was used as the primary method of data collection. A total of 160 persons were interviewed and three hypotheses acted as a guide in this work and were all accepted based on the analysis of data available using content analysis. The majority views and minority views were recorded. Also, some findings were made in this research, they include that the four state refineries in Nigeria do not meet their production capacities and prior to deregulation, government was the main participant in the petroleum sector. Some recommendations were made and they include; government should build more refineries to meet up with local demand for petroleum products and emphasis should be laid on the proper (TAM) turn around maintenance of the existing four state refineries.

TABLE OF CONTENTS

Title page ------------------------------------------------------------------------ i

Certification --------------------------------------------------------------------- ii

Dedication --------------------------------------------------------------------- iii

Acknowledgement ------------------------------------------------------------- iv

Abstract -------------------------------------------------------------------------- v

Table of Content --------------------------------------------------------------- vi

CHAPTER ONE: INTRODUCTION ------------------------------------- 1

1.1 Background to the Study -------------------------------------------------- 1

1.2 Statement of the Problem ----------------------------------------------- 5

1.3 Objective of the Study ---------------------------------------------------- 7

1.4 The Significance of the Study ------------------------------------------- 8

1.5 Scope and Limitations of the Study ----------------------------------- 10

CHAPTER TWO: LITERATURE REVIEW AND

METHODOLOGY ------------------------------------------------- 12

2.1 Literature Review -------------------------------------------------------- 12

2.2 Gap in Literature -------------------------------------------------------- 30

2.3 Hypotheses --------------------------------------------------------------- 31

2.4 Operationalization of Key Concepts in the Work ------------------- 32

2.5 Theoretical Framework ----------------------------------------------- 36

2.5.1 Tenets of Elite Theory ---------------------------------------------- 37

2.5.2 Application of the Theory ------------------------------------------ 39

2.6 Method of Data Collection ------------------------------------------- 41

2.7 Method of Data Analysis --------------------------------------------- 43

CHAPTER THREE: BACKGROUND INFORMATION OF

THE STUDY AREA ------------------------------------------- 44

3.1 Historical Background of the Petroleum Sector in Nigeria ------- 44

3.2 Origin of Deregulation Policy in Nigeria Petroleum Industry- -- 46

3.3 Origin of Labour and Trade Unionism in Nigeria ---------------- 47

3.4 Strategies for Implementation of Petroleum Deregulation Policy in Nigeria --------------------------------------------------------------- 50

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS-53

4.1 Petroleum sector Reforms and Government Deregulation of Petroleum Products Prices ------------------------------------------ 53

4.2 Deregulation of Petroleum Products Prices and Negative Attitude by Labour --------------------------------------------------- 58

4.3 Deregulation of Petroleum Products and Positive Impact on the Economy --------------------------------------------------------------- 64

4.4 Findings and Discussions --------------------------------------------- 71

CHAPTER FIVE: SUMMARY, CONCLUSION AND

RECOMMENDATION -------------------------------------- 73

5.1 Summary -------------------------------------------------------------- 73

5.2 Conclusion ------------------------------------------------------------ 75

5.3 Recommendation ----------------------------------------------------- 77

References ------------------------------------------------------------ 79