AN ASSESSMENT OF THE IMPLICATION OF A POST DEREGULATED PETROLEUM SECTOR UNDER THE PETROLEUM INDUSTRY GOVERNANCE BILL 2016 ON NIGERIA’S PETROLEUM EQUALIZATION POLICY

The 8th National Assembly via the Petroleum Industry Governance Bill (PIGB)
2016 aims at entrenching a deregulated Oil Industry in Nigeria by introducing
a number of changes to the legal and regulatory framework of the oil and gas
industry including the restructuring of government’s regulatory agencies. One
of the agencies to be retained under the bill is the Petroleum Equalization
Fund (Management) Board (PEF (M) B). PEF(M)B is statutorily empowered
to reimburse marketers the cost of transporting white products from supply
points to retail outlets throughout the country, to ensure sale of the products
at uniform pump prices. Its performance of this role has ensured the sustained
sale of petrol and diesel at the government approved prices nationwide.
However the principle of equalization is at cross purposes with deregulation
which the PIGB hopes to achieve. This paper thus examines the provisions of
the PIGB as it relates to PEF. It examines the implication of the PIGB on the
mandate and activities of the PEF(M)B and determines if PEF (M)B can
remain operational in a post deregulated Oil Industry in Nigeria