CHAPTER ONE GENERAL INTRODUCTION
- Background to the Study
There are two sectors of the Nigerian oil industry: the upstream and the downstream sectors. The concern of this research is focused on the downstream sector, which cover pricing, supply and distribution of petroleum products. In the beginning of petroleum production in Nigeria, the attention of government was focused mainly on the upstream sector of the Nigerian oil industry.1 However, due to rapid expansion in economic activities in the country after the civil war, the attention of the Federal Government was later extended to the downstream sector through the regulation of pricing, supply and distribution of petroleum products in the country. In the downstream oil sector, it is the government that set the policy of regulation in pricing, supply and distribution of petroleum products in the country. The history of petroleum products‟ pricing can therefore be traced to the early colonial legislation called the Mineral Oils Act of 1914 that was later repealed by Military Decree No. 51.2 Some of the provisions of the Decree were later replicated into the Petroleum Act.3
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