APPRAISING THE LEGAL REGIME FOR PETROLEUM PRICING IN NIGERIA: IMPLICATIONS FOR PRICE MANIPULATIONS

Abstract

This article examined the evolution and legal framework of Petroleum Pricing Regulations in Nigeria, from its historical subsidy regimes to the market-driven framework introduced by the OPEC, IEA and the Petroleum Industry Act (PIA) 2021. It posited that while the Regulators aim to foster deregulation and transparency, the absence of robust enforcement and clear market signals could lead to significant price manipulation, with severe economic and social implications for Nigerians. The article highlighted the key objectives and legal provisions within the PIA that relates to pricing, market regulation, and the roles of new regulatory bodies like the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). It further examined the various forms and implications of price manipulation, including hoarding, artificial scarcity, and speculative pricing, on the Nigerian economy, consumer welfare, and overall market stability. Through a conceptual framework that linked price regulation, market dynamics, and socio-economic outcomes, this aimed to provide a comprehensive understanding of the challenges and opportunities presented by the PIA in ensuring fair and transparent petroleum pricing. It concluded with recommendations for strengthening regulatory oversight and mitigating price manipulation to maximize the benefits of the PIA for all stakeholders.