What is the deregulation of the Downstream Sector?

Opens the sector to competition

Players to participate at every segment of the value chain

Removal of entry barriers in the supply and distribution of petroleum products

Why Deregulate

• Ensure petroleum products are available to consumers
• Eradicate waste and corruption
• Ensure supply and distribution are orderly
• Channel money otherwise paid as subsidy to key development projects that will be beneficial to citizens

Dividence of Deregulation

• Enhanced learning environment
• Clean portable water
• More funds for primary healthcare
• Efficient power supply
• Increased agricultural production
• Good road networks

Merits of Deregulation

• Availability of products
• Full cost recovery
• Response to changing circumstance without political intervention
• Fair margins to all players
• Competition and efficiency will drive prices downward
• Entry of new participants
• Facility expansion that was not possible in a regulated market
• Foreign entrepreneurs to invest in the downstream sector
• NNPC a major player in the retail business