Rentierism, Deregulation and Social Decay: Reflections on the Dynamics of State Management of the Downstream Oil Sector in Nigeria

Abstract

The oil industry is the major driver of Nigeria’s economy. Virtually all aspects of the economy have a multiplier relationship with petroleum products. Whatever happens in the oil and gas sector affects all other sectors of the economy and, more fundamentally, the social welfare of the people. In the recent times, the global campaign to change the interventionist character of the state has orchestrated wholesale deregulation of Nigeria’s political economy, particularly the downstream oil and gas sector. Against this backdrop, this study examines the impact of the withdrawal of oil subsidies and adjustments in the pump prices of petroleum products on the quality of life in Nigeria. Documentary method was used to generate the relevant secondary data which were analysed using qualitative content analysis. The Marxist Structuralist theory of the state was employed to x-ray the relegation of social welfare arising from the implementation of deregulation programme attendant to neoliberal reforms. The study argues that the deregulation of the downstream oil and gas sector has led to palpable deterioration in the quality of life. The study holds the view that the management of Nigeria’s oil wealth is to the ultimate benefits of various arms of capital and this has led to social decay and disempowerment of the masses. The study sees responsible political leadership as the only way to actualize prudent management of oil wealth, human security and sustainable national development in Nigeria.