Chapter One: General Introduction

1.1 Background of the Study.

Since independence in 1960 in Nigeria different

governments have embrace on one programme or

another. The research work is to examine the activities of

the public opinion on public policy from 2010-2012

hence narrowing it down to an economic reform policy of

the deregulation of the downstream oil sector in Nigeria

also known as the fuel subsidy removal in Nigeria.

Nigeria is a democratic nation. One of the principles of

democracy is the operation of fundamental human rights

which of allows for the freedom of speech which is on the

view of the majority influencing governmental decisions.

Public policy as applied to politics is seen as a statement

xii

of a principle with their supporting rules of action that

conditions and governs the achievement of their goals.

Government usually engages in different programmes as

the government is the authoritative body because they

are backed up by the law. Government also has both

power and authority to execute their duties and also

ensure compliance. These programes are directed

towards solving a particular programmes or preempting

them. Therefore programmes are not just mode for fun of

making them they are made to solve the societal needs.

They entail the expenditure of public funds.

Before colonialization the economies of the different

kingdoms that now constitute the Nigeria political entity

were based on agriculture. Since independence in 1960

the role of agriculture in the economy of Nigeria has been

on the downward trend with regards to its contribution to

GDP. Its share to GDP fell from 61.5% in 1963/1964 to

14.6% in 1983. This has been partly due to the

xiii

emergence of oil-Reynolds (1975) argued that agricultural

development can promote economic development of the

underdeveloped countries in four different ways:

1. By increasing the supply of food available for

domestic consumption and realizing the needed

labour for industrial employment.

2. By enlarging the size of the domestic market for

the manufacturing sectors.

3. By increasing the supply of domestic savings

4. By providing the foreign exchange earned by

agricultural exports.

Since the discovery of oil which earns us our

foreign exchange agriculture has been abandoned.

Exploration for crude petroleum oil in Nigeria first began

in 1980. But serious and sustained efforts did not

happen until shell Darcy petroleum Company

commenced operations in 1935. It took this company

more twenty years to discover petroleum crude oil in

xiv

commercial quantities in Oloibiri in 1956. Nevertheless

oil price has never been satiable in the country as

successive governments keep adjusting the price

upwards beyond the affordability of the common citizens

of the oil producing country. Like in the price of

petroleum products is a global phenomena problem in

the international market.

Specifically oil prices in Nigeria have been on a

continuous increase since the beginning of 2004 and this

has happened despite the organization of petroleum

Exporting countries (OPEC) increase in its oil out put.

Earlier in 2004 the run up in oil price was attributed to

surging demand for petroleum products due to global

economy. Then it was the unrest in Nigeria. Concerning

the security of oil supplies have heightened more

recently. Nigeria is the sixth oil producing nation in the

world.

xv

The subsidy removal on fuel has increase the price

of oil. In the past the increase in price occurred mostly

in the extent of disruption to oil supply. Now the

deregulation policy has heightened the price of oil

disruption of oil supply. There is concern the current

step rise in the price of oil as a result of the removal of

subsidy on fuel could have an adverse impact on the

Nigeria economy; that is currently on road to recovery

and expansion. When oil is expensive people try to use

less of it. They may reduce the amount they derive on

reduce the temperature to which they heat their houses

which their minor economies will have little or nothing on

consumption Higher have less money to spend on other

things. This reduces because most goods and services

the consumer would have bought have required the use

of oil for their production and delivery. If higher oil prices

reduce consumer demand very much manufacturers and

retails will find that their profits suffer and that they

xvi

have surplus capacity. They will therefore deter their

plans for expansion. This will result in very large energy

savings because work is energy intensive.

The concept of public policy can be seen as simply

governmental actions or course to proposed actions that

are directed to achieving goals (Ikelugbo 1999). Care

Fredrick (1980) defined it as government or one of its

divisions by government. The main idea of public policy is

that it has to do with the government. It is an action or

sets of actions taken by public authorities it is the out

put or production of governmental process and activtieyt.

Public involves and affects the wide verity of areas and

issues with which government have to do such as the

economy education health defence social welfare

foreign affairs as well as other areas like culture.

Sometimes the government adopts the state coercive

agencies like the police to enforce and ensure compliance

of policies. Also these coercive agencies end up loosing

xvii

their lives in the course of ensuring compliance. A case

study is in Ilorin Kwara state a police officer and a youth

were feared dead. Their death occurred during a violent

demonstration by the youths that engaged the youths

and police into a tow hours fight throwing missiles

which led to the use of live bullets by the police.

The subsidy removal on fuel is an economic policy.

Nigeria adopted several economic policies for

development. The introduction of economic reform

programmes started after her independence in 1960.

During this period Niger derived to embark on a

programme for development which they saw its

importance for gaining economic independence

especially. Still at that the past colonial masters of

Nigeria still control the affairs of the nation. While the

past-independent leaders sort assistance from them for

development. This was done through the iprotation of

industrial technology amongst others while the assisting

xviii

countries will give out their conditions. And any

developing country like Nigeria that will not submit to the

scheme of economic demands or conditions of those

aiding them or will not accept their advice and control

usually will have little choice of developing.

The economic policy have been seen or have given

the impression that it is a policy which has been

influenced by the western countries or foreign investors

based on their interest in the country‘s oil; another way

the westerns want to dominate Nigeria again. This has

elicited stiff resistance by the Nigeria public through

labour unrest and mass protest.

This study therefore attempts to assess the impact

of public opinion on public policy in Nigeria using the

deregulation of the downstream oil sector or oil subsidy

removal as our analytical focus.

1.2 Statement of the Problems

xix

It is obvious that the present democratic rule in Nigeria

has witnessed increase price increase of petroleum

products more than during the past military

administrations.

Since independence successive governments in

Nigeria have embark on various policies geared towards

developing their country. The first development plan was

carried out during the ear of Abubakr Tafawa Belewa

(1962-1968) the second was during the era of General

Yakubu Gowon (1970-1974) the third was during the era

of General Murtala Mohammed (1975-1980) Green

Revolution by the government of General Olusegun

Obasanjo Alhaji Shehu Shagari 91981-1985) carried out

the operation Feed the Nation Policy (OFN) War Against

Indiscipline (WAI) was carried out by the government of

general Mohammed Buhari in 1989 General Ibrahim

Babangida carried out the Structural Adjustment

Programme (SAP) between 1990and 1992 General Sani

xx

Abacha carried out the policy on War Against indiscipline

and Corruption in 1997. At the advert of democratic rule

in 1999 Chief Olusegun Obasanjo embarked on

economic reform pregramme encapsulated in the

privatization liberalization and deregulation

programmes.

Not withstanding these array of programmes

Nigeria is still looking for a better way for advancement

and development as none of these economic reforms of

the country. Deregulation of the downstream sector

started during Obasanjo‘s regime as an economic told

that will enhance or foster development. This was

justified on the grand that the downstream sector or the

oil sector is riddled with corruption as a result of

mismanagement and ineffiency.

Same Nigerians especially the political observes see

it as a good step that will save Nigeria from her present

economic problems. Other see it as a means where by few

xxi

people will benefit which a large number pf the citizens

will not instead it will be detriment to them. To some

scholars also it is a channel for development while other

sees it as a new way or means of penetrating and

exploiting Nigeria by the western world. None has

however emphasized the role of public opinion in

influencing the formulation or abrogation of public

policies to assuage the yearning of the populace. This

research work therefore attempts to fill this gap to the

extent liter by seeking answers to the following questions:

1. Are public policies in Nigeria a product of public

opinion?

2. To what extent has public opinion impacted on

public policies in Nigeria?

3. Is the deregulation of the down stream oil sector

a panacea to poverty and underdevelopment in

Nigeria?

xxii

1.3 Objectives of the Study

This work is channeled at the critical examination and

analysis of the impact of public opinion on public policy.

Specifically the study intends to:-

1. To ascertain if public policies in Nigeria are

products public opinion.

2. To ascertain the impact of public opinion in

public policies in Nigeria.

3. To determine if the deregulation of the

downstream oil sector is a panacea to poverty

and underdevelopment in Nigeria.

1.4 Literature Review

It is the commitment of this chapter to discuss the

meaning of public opinion raise pertinent questions in

respect of the political life-style of the average citizens. In

xxiii

the highlight of this we look on the importance of public

opinion and how it influences government policies. How

the elite formulate policies and the relevance of public

opinion towards policies.

Nwankwo (1990:123) explains that public opinion is

one of those terms which eludes precise definition. In its

common use public opinion refers to the composite

reactions of the general public on issues which affect

them. He defined it as not just what people think more

even what they say public but rather what in practice

they want to bring into effect.

Thomas Hobbes observes that this serves as a basic

instrument in evaluating the role and functions of

government and the level of its effectiveness and impact

on the political system. In every government public

opinion is the measure of central tendency for democracy

both in theory and practice.

xxiv

Taiwo and Olanijan (1974) submit that public

opinion refers to the sum total of citizens‘ view on

matters of public policy at any given time; reflecting the

way people think on subjects of national interest.

Public opinion can also be described according to

Lea (1978) as the opinion held by groups of individuals

on a particular issue. Hence it is not necessary

unanimous majority opinion since minority views can

carry more influence if expressed effectively when the rest

of the public are divided or apathetic on a particular

matter. Public opinion is very crucial in any society.

Every democracy is predicated upon the right of the

citizen to freely express himself. Even from the time of

the Greeks public opinion has always been considered a

guiding ethic of government. The foregoing is given more

impetus if we take into consideration the fact that

elected make policies for the people based on the

peoples‘ wishes and aspirations and there is always the

xxv

need to listen to the voice of the world that ―the voice of

the people is the voice of God‖. This voice of the people

may either be expressed opinion or feelings toward

decision which government has already made (fuel

subsidy removal) or contemplates making (adopting gay

marriage and the introduction of five thousand Naira

note).

The public opinion may be for or against the

government. Every government is always assessed at the

court of public opinion and that is why it is advisable for

government to enunciate programmes that will meat with

the approval of the people. The annulment of the June

12 1993 presidential election by General Ibrahim

Babagida which brought the views of Nigerians under

one canopy there have not been any other issue that

made them to have one voice or gave them one voice; but

the fuel subsidy removal.

xxvi

The pervasive importance of petroleum to socio-

economic development and political stability of a country

make its pricing very crucid and sensitive. Given

Nigerians past experience with the price of petroleum the

management and productive of the sector.

In the past three decades oil has played a critical

role in the Nigeria economy. On the average it has

accounted for 70 percent of the government revenue 90

per cent of foreign exchange earnings and 12 per cent of

the real gross domestic product (GDP). In addition oil as

a energy resource affects all modes of transportation (air

rail road and sea) and thus has implications for the

movement of goods services and people. Developments in

the oil sector have also major implications for industrial

production as oil and its derivatives are used in the

production of goods and services. The unrealizable status

of electricity in the country forces many industries firms

to operate their own products. In the agricultural sector

xxvii

farmers depend on oil products to move their inputs to

the farms as well as evaluate their produce. Also give the

country‘s high dependence or road haulage gasoline and

diesel assumes a high significance in the transportation

sub-sector. Clearly the price of oil products would affect

the costs and profitability of many Nigeria firms as well

as the welfare of a vast number of Nigerians. Hence the

price of petroleum products and their availability are of

major interests to Nigeria governments yet the civil

society and the masses. Yet the pricing of crude oil and

refined petroleum products in Nigeria has not been

generally well understood.

The debate on petroleum pricing has centered on

whether the pump price should reflect the full cost of

production (including refining and distribution costs) and

its opportunity cost c9against the background that oil is

a tradable goods) or contain elements of subsidy. On the

other hand it is often argued that the greatest the

xxviii

amount of subsidy the less resources available for it for

the execution of development projects. (This view is

predicated on the argument that if petroleum on the

appropriately priced it would ensure supply adequacy

efficiency distribution viability of the firms and enhance

government‘s capacity to generate and undertake core

capital projects). There is a strong view that given critical

role of oil in the Nigeria economy pricing domestically

consumed crude at export parityis insensitive to the

plight of Nigerians majority of whom live below the

poverty line and the wide wage differentid between

industrial and developing countries. At this junction the

work highlights on the view of

scholars concerning public policies or the deregulation of

the clan stream oil sector (also known as the fuel subsidy

removal) as well as the relationship.

Babs Conley (1998:34) deregulation is the removal

on simplification of government races and regulations

xxix

that constrain the operation of market forces.

Deregulation does not mean elimination of laws against

fraud but elimination or reducing control of low business

done thereby moving towards a free market.

Ajinde Olu Washeti (1998:61) had it that

deregulation is the removal or withdrawal of side control

of economic activities for the active participation of

private sector group and individual entrepreneurs in the

economy.

M. Katz and C. Malphaerson (2006:51) who were

international Monetary Fund (IMF) and World Bank

representatives support the deregulation programme.

They had it that if the governments do not remove the oil

subsidy there would still be lack of transparency in the

oil and gas sector massive corruption large scale

inefficiency and waste.

Babanjide Soyade (12008:14) contributed that the

deregulation policy will be beneficial to the Nigerian

xxx

economy because it will create a market environment

that will make it easy for the government to sell the

countries refineries for better management and efficient

therefore with out the policy of deregulation it would be

difficult for investors to place appropriate values on the

refineries.

President Olusegun Obasanjor (2006) admitted that

Nigeria over the past three decades had not effectively

utilized the huge oil revenue. This is as a result of lack of

open power governance.

Many socio- political and economic

challenges that the nation (Nigeria)

face seems to coacese around that

oil has not benefited the vast

majority on population of Nigeria

Adaumeokoli (2006:8) say that significant savings in

foreign exchange will result when the privatized new

refineries are in operation. The nation currency will most

likely strengthen and there will be local and foreign

xxxi

private capital flows into the Nigeria economy and there

will be adequate jobs. Based on this assumption above it

is believed that the policy will bring above effective

competition and efficiency and this will kick off the price

reduction of petroleum.

It is in this highlight of this that the view of

scholars who see the policy of deregulation policy fail to

see the consequences of the policy on the local market

and industries. And the widing gap-between the rich and

poor and developing country-Nigeria. To Mohammod

Sumugi (2006:50) the Nigerian government like its

counter parts in some developing countries has always

communicated the potential benefits of deregulation in

absolute terms. In the case of Nigeria a gradual

approach to withdraw subsidy which Hassan petrol price

by more than 49% between 1999 and 2002 had failed to

deliver promised infrastructure failed to improve the

social sector and economic development. In essence the

xxxii

deregulation policy is therefore not capable of developing

the Nigeria economy but will only be for the satisfaction

of the foreign investors.

Raph Egha (2001:12) see the deregulation policy as

a deceitful way of the developed countries He

contributed:

I like the developed nations and

their tricks they play on the rest of

the world Asia Latin America and

they compel the third world and

trick them to adopt in their invest

and to the interest of the developing

nation-Nigeria.

To ascertain that the deregulation policy is foreign

influence Alinde Oluwashontin (2006:51) say that

Buhari refusal petropetrolum subsidy privatize and

liberalize trade as directed by the IMF and World Bank

had results like Nigeria economic interest globally the

refusal to honour Nigeria‘s letter of credit reschedule

debts suspension of all discussions with Nigeria for the

xxxiii

loans. Aduma Ahamed (2006:30) added that the policy of

deregulation is for the benefit of the Multi-national

companies and in open market will not give spare for

local industries to take part in the policy.

To review on the concept of policy in everyday

discourse whether private or public sector the concept

of policy is often use. Davis and Filley (1977) ―a policy is

a statement of a principle or group of principles with

their supporting rules of action that conditions and

governs the achievement of certain objectives to which a

business is directed‖. Coventry and Baker (1985) see

policy as the guidelines laid down in generd or specific

terms to reach the long-range or targets set by the

objectives‖. In simple terms Jones et al (1998:203) see a

policy as ―a generd guide to action‖. While Katz and Kahn

(1966:477) believe organizational policies are

abstractions or generalizations about organizational

behaviour at a level that involves the structure of the

xxxiv

organization. Obikeze and Obi (2004:87) see policy as

the guiding principle towards the realization of

organizational objectives.

N.U Akpan (1982:32) who defined policy as ―a form

of law made by the governing bodies of organizations to

govern direct control and regulate members of the

organizations‖. He went further to point out that this

―may take legal form of laws passed by the legislature

decisions of a government cabinet or boards of directions

of public corporations or private companies and even

instruction issued by departmental authorities and so

on‖.

While Akpan‘s Definition may be regarded as

general and broad Thomas Dye‘s definition is more

specific. According to him public policy is ―whatever the

government chooses to do or not to do‖. It follows from

this definition that it is not only in situations when

government decides to take action about issue do we

xxxv

have public policy but that it is also a policy position if

government decides to do nothing about policy problem‘

another scholar Carl friedich defines public policy as ―a

proposed course of action of a person group or

government providing obstacles and opportunities which

the policy was proposed to utilize and overcome in an

effort to reach a goal or realize an objective or purpose‖.

Professor James Anderson insists that policy ―a

purposive course of action followed by an actor or set of

actors dealing with a problem or matter concern‖. In this

definition Anderson further classified that policy

―focuses attention on what is actually done as against

what is proposed or intended. Another salient feature in

Anderson‘s definition is that public policies are those

policies developed by governmental bodies and official‘

an action which could be influenced by ―non-

governmental actors and factors‖.

xxxvi

With the views of the mentioned scholars was can

say that public policy refers to those define acts or

actions of government geared towards the fulfillment of

the obligations of government on the citizens that is the

maintenance of law and order and the provision of

necessary social and economic facilities needed for an

enhanced standard of living of the people-public policy

is usually organized around programmes and the

strategies to be adopted for its implementation towards

the achievement of the stated objectives outlined.

Public policy according to Anderson can be better

understood within certain conceptual categories outlined

below:

1. Policy Inputs

2. Policy Decisions.

3. Policy Statement

4. Policy output

5. Policy Outcome

xxxvii

1. Policy Input:- They are decision refer to all the

demands or supports on the system. It can come in

a way of demands or supports on the system. Policy

demands are those demands or claims made upon

public officials by other actors private or officials.

2. Policy Decisions:- They are decisions made by

public officials that authorize or give and content

public actions. In this sense the decision by the

Nigeria government to remove subsidy on fuel is a

policy decision.

3. Policy Statement:- Policy statements are

authoritative pronouncements of government

indication what government wants to do and how it

wants to do it. The deregulation of the downstream

oil sector is seen as a policy statement.

4. Policy Output:- It refers to what the government

does in response to a public opinion

xxxviii

5. Policy Outcomes:- It is the effect or impact of

policy on the target population or society as a

whole.

To gain deeper insight on the subject matter of public

policy it is worthy to note the two derisions of public

policy. The Reformist and nationalist Perspectives. The

Reformist scholars are of the view that the public policy

(on the fuel subsidy removal). Hence the two contending

scholars (reformist and nationalists) are either in support

of the policy or against the policy. The reformist had it

that there is the need for interaction between the less

developed countries of Africa Asia and Latin America and

the developed countries of European and America. That

this interaction will foster development among the third

world countries or less developed countries. The

reformist schools of thought is led by an American

economist Bill Warren who also obstacle that imperialist

relationship is not of the third world and the developed

xxxix

world does not constitute an obstacle towards the

development of the third world countries.

Other disciples of the reformist school such as M. Katz

and C. Malphaerson (2006:51) who were IMF and World

Bank representatives support the deregulation

programme. They had it that if the government do not

remove subsidy there would still be lack of transparency

in the oil and gas massive corruption large scale

inefficiency and waste.

Babjide Soyade (2008:14) contributed that the

deregulation policy will be beneficial to Nigeria economy

because it will create a market environment that will

make it easy for the government to sell the countries

refineries for better management and efficiency

therefore without the policy of deregulation it would be

difficult for investors to place appropriate values on the

refineries.

xl

Adaumeokoli (2006:8) say that significant savings in

foreign exchange will result when the privatized new

refineries are in operation. The naira currency will hostel

likely strengthen and there will be local and foreign

private capital flows into the Nigerian economy and there

will be the Nigerian economy. And there will be adequate

jobs.

The views of the reformist are criticized by the

nationalist school. The nationalist who are mostly

influenced by Marxism had it that the interaction of the

third world with the developed countries is of negative

effect. Based on their view that industrialization does not

mean development but a means to end which is

development. They also had it that most of the industries

that exist in the third world countries are merely

assembly plant and extension of the industries located

outside the third world such as the Anamco Motor

xli

industries and Peugeot car assembly (etc). This process is

known as transfer of technology (Abeh 2000:64).

Ralph Egha (2001:12) sees the deregulation policy as a

deceitful way of the developed countries. He contributed:

―I like the developed nations and

their tricks world Asia Latin

America and they cannel the third

world and trick them to adopt in

their interest and to the interest of

the developing nation-Nigeria.

Aduma Ahamed (2006: 30) added that the policy of

deregulation is for the benefit of the multi national

companies and in open market will not give spice for

local industries to take part in the policy.

This works however examines the relationship or

how public opinion affects whether the deregulation

policy is detriment to the Nigeria masses (who are the

ruled and are also in the majority) or is the policy for the

advantage of the few ruling class few individuals as well

xlii

as foreign investors who hide under the umbrella of the

multi national or no development in the country.

1.5 Significance of the Study

Recently in Nigeria public policies have affected the lives

of the Nigerian people. The work optimistically will be of

great value to the contributors of literature on policy

formulation in Nigeria. Therefore it is to inspire and

guide researchers who in the future want to enroll in

more studies.

This work will help policy makers and executors to

consider their nation while attempting to make policies in

Nigeria as well as other nations. With this it is believed

that the study will contribute to the economic political

educational social development of Nigeria hence

beneficial to the Nigeria public.

xliii

1.6 Theoretical Framework

The system theory will be the theoretical framework of

analysis. System theory was made popular by David

Easton who sees political life as a system of behaviour

with established set of interaction for the authoritative

allocation of the values of society through an input and

output matrix. In this sense therefore public policy may

be seen as a response of the political system to the

demands expectations and as aspirations of the citizens

or in a more technical sense to the demands arising from

its environment. Input from environment into the system

consist of demands and supports.

On the one hand demands are the claims or

expectations of individuals and groups on the political

system for action to satisfy interest or needs. On the

other hands support represents the willingness of the

citizens to accept the decisions or value allocations

xliv

which is made in response to demands on the system. It

is this authoritative allocation (or outputs) that constitute

public policy. Output is thus the converted demands

(input) upon the system. Furthermore systems analysis

involves the concepts of feed-back. Feedbacks are new

demands from the policy outputs ―which lead to further

outputs in a never-ending flow of public policy‖.

The usefulness of the systems theory lies in its

attempt to show how public policy can affect and be

affected by the environment as well as the demand-

conversion process. However beyond this the theory

says very little concerning how decisions are made and

policies developed within the ―black box‖ or the

conversion process. Thus according to Anderson the

usefulness of the systems theory is limited by its highly

general nature. For instance one of the most important

limitations of the systems theory is the assumption that

public policy is the synthesized outcome of system

xlv

demands including of course demands from such

groups as the peasantry. This cannot be entirely true for

the peasants could not have chosen to remain poor and

hungry or preferred to have the rural and agricultural

sector underdeveloped.

According to Dahl (1991) any collection of elements

that can be considered a system a galaxy a football

team a legislature a political party. David Easton in his

work believed that while the political system receives

input from the environment informs of demands and

supports it also produces output. A political system is

that system of interactions in any society through which

binding or authoritative allocations are made and

implemented in form of policies and decisions. The

output flows back into the environment through a

feedback mechanism giving rise to fresh demands. A

breakdown analysis is described below:

xlvi

Demand; it involves what the Nigerian masses need

such as basic amenities like good roads hospitals

schools as well as job creation and security. This demand

is defined in terms of Input.

Support: it is defined interms of output. It involves the

willingness of the citizens (Nigeria) to accept the decisions

or value allocations which is made in response to

demands on the system. It is the authoritative allocation

that constitutes public policy. That is the removal of fuel

subsidy to generate employment and provide more basic

amenities. Thereby asking the Nigeria masses to accept

the support of deregulation policy.

Feedback: it is the reaction of the people from the

output. Hence the feedback on the Deregulation policy

is expressed in terms of public opinion. As the feedback

of the policy on deregulation was the unwillingness of

Nigerians to accept the policy. To an extent resulted to

strikes among the Nigeria Labour Congress (NLC).

xlvii

To draw the curtain on systems theory it is seen

that in terms of utility systems theory has bees found

useful in the study of public policies. First it tends to

show that public policies are not made from the vacuum

that they are products of the demands from the

environmental. Thus it tends to situate environmental

factors as being vary important in the policy process. The

theory is also very useful in comparative analysis as it

helps in different countries in terms of the response of

the political system to the demands of its environment.

We can then be in a batter position to understand the

difference between developing and developed countries in

terms of public policy process. Also this systems theory

enriches our study of not only public policy analysis but

of political science in general.

1.7 Hypotheses

xlviii

Drawing from the forgoing the study will be enriched in

the following:-

i. Public policies in Nigeria are produces of public

opinion.

ii. Public opinion seems to influence public policies

in Nigeria.

iii. Deregulation policy may aggravate poverty and

underdevelopment in Nigeria.

1.8 Method of Data Collection /Analysis

Data will be gathered from text books articles

magazines internet materials Newspapers as well as

published and unpublished writings records and

documentaries (secondary source). While the qualitative

method will be the method of data analysis.

1.8 Scope and Limitations of the Study

xlix

The research work is on the fuel subsidy policy or the

deregulation of the downstream oil sector that was

adopted by the federal government of Nigeria to take

effect from January 1 2012. Though the policy took

effect on the given date the work is the therefore to

examine on the impact of the policy on the lives of Nigeria

masses as well as the problem of the policy.

1.9 Definition of Terms

Deregulation: The act or process of removing or reducing

state regulations.

Subsidy: A benefit given by the government usually in

form of a cash payment or reduction.

Public policy: A system of laws regulatory measures

course of action and funding priorities concerning a

given topic promulgated by a government entity on its

representatives.

l

Multi National Companies: A corporation that has its

facilities and other assets in at least one country that its

home country. Such companies have offices and/or

factories in different countries and usually have a

centralized head office where they co-ordinate global

management. Very large multi nationals have budgets

that exceed those of small countries. And most times

they come inform of foreign investors.

Underdeveloped or Less developed Countries (LDCS):

Consist of the countries of the third world of Africa Asia

and lain America that are referred to as agricultural

because they rely on agriculture and have little or no

industries for manufacturing. Charactersied with:

a. Economic. Financial technological and

cultural dependency.

b. Lots of import substitution industries which

depend on external resources.

c. Poverty

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d. High level of child mortality

e. Unemployment

f. Political instability

g. Malnutrition

Developed Countries: They are also known as the

advances countries of Europe and Western America. They

are called industrialized countries because of their

advanced technology. They are often characterized by the

following:

a. High level of employment

b. Self-reliance

c. Independent control of economy

d. Self-sufficiency in food production.

e. Incearse in the ability to guard national

independence

Economic Policy: It is a guideline used in the economic

development of a nation. Example Structural

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Adjustment programme (SAP) deregulation of the

downstream oil sector etc.