SUBSIDY REMOVAL AND INDEPENDENT OIL MARKETERS’ ACTIVITIES IN THE NIGERIAN DOWNSTREAM SECTOR: A CATALYST FOR PROGRESS

Abstract

It is general assumed that the removal of an impediment to the development of a matter can stimulate progress. The Nigerian economy is a mono economy solely dependent on the proceeds from oil for survival Crude oil is the mainstay of the Nigerian economy attracting up to 80% of the country foreign exchange. With its pivotal role in the development of the Nigerian economy this study focuses on accessing the activities of independent oil marketers in the Nigerian downstream oil and gas sector within the context of subsidy removal with the intention of making a case for their scrapping or retention. The marketing function of distribution is at the heart of marketing which borders squarely on logistics. However, the nefarious activities of oil distributors otherwise called independent oil marketers erode this function completely.  The study adopts a thematic research design wherein existing literature on the subject matter were reviewed to discover gaps and outcomes for future research. From the findings, the retention of the independent oil marketers’ activities due to its vital position in the provision of the final consumer is recommended however, an increase in the supply of crude oil within the economy through the revitalization of the dilapidated refineries in Nigeria should also be considered; this would reduce the dependency on oil and development other sectors of the economy.