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The objective of this study Is to offer both theoretical and practical insights about the deregulation recess In Nigeria from a management violent. TLS study theoretical framework Is embedded In three aspects of the literature: deregulation, strategic management and competitive forces. These three perspectives are used in order to assess emerging effects, challenges and prospects of deregulation of the industry and the changing strategic landscape arising from the deregulation exercise.
The theory of competitive forces provides and understanding of the industry structure and the interactions between competitors, while Innovative management Is needed in order to assess Industry processes and capableness. Summarizing and Integrating these viewpoints formed a hypothesized understanding that reflected the effects, challenges and prospects of deregulation-An empirical analysis of the study required a constructed research methodology that is based on quantitative and qualitative methods.
A non-probability sample approach with a dichotomous questionnaire (of TEST/NO responses) was self-administered in Baja, Lagos and Port Harcourt to represent three geographical areas in Nigeria; the target population of fifty persons from each state was chosen using purposive sampling method. Furthermore, an open-ended questionnaire was self-administered on two managers from Forth Oil, one manager from Indo PL and one manager from Total PL. The manager’s views were sought in order to have an industry professionals opinion on the deregulation of the downstream oil and gas industry.
The presentation of result followed a statistical test of hypotheses on the effects, challenges and prospects of the deregulation of the downstream Industry. A Porters five forces model was also utilized to analyses the competitive forces In the Industry. The analysis performed indicated that respondents are concerned that deregulation could have numerous effects on the country and there are yet many challenges ahead. However, there is an overwhelming consensus that there are great prospects for the downstream sector to be improved by deregulation.
Overall, the result shows that many Nigerian are of the opinion that deregulation will deliver positive effects, reduce the challenges In the Industry and also create better prospects and opportunities. The study reveals that the previous regulated regime of the downstream oil and gas industry has become more competitive and market driven. Nevertheless, it also indicates that the industry is not fully deregulated to enable the market mechanism to determine product prices; rather the government has been fixing petroleum product prices. The study further revealed that deregulation program is poorly implemented by regulatory agencies.
Hence, In view of the lapses revealed, this implementation, evaluation, monitoring and control is required to drive the success of deregulation of the downstream oil and gas industry. Abstract: Purpose: To examine the extent to which deregulation of the Nigerian Petroleum downstream effectively and efficiently promotes petroleum product distribution. Design/ Methodology/Approach: This study was carried out by reviewing the organization of the Nigerian deregulated downstream provision with reference to the products and services, major players, traits and inherent tensions.
Further, an analysis of determinant forces in the sector was performed using Porter’s five forces with particular focus on fuel retailing. We were able to identify key issues in the effective management of an oil and gas supply chain. The study further goes to proffer rabble recommendations to tackle these tensions and issues inherent in petroleum product distribution in a deregulated regime so as to enhance competitive advantage.
Findings: In view of the data extracted from both primary and secondary sources, it was discovered that fuel retailing was key to a company’s supply chain as it largely went ahead to determine the application of other products. Also, partial deregulation of the Nigerian petroleum downstream has failed to address most of the challenges in the sector, and thus, until total deregulation of the sector, these problems would continue to be experienced.