Abstract
This book critically explores how globalization and democratization affect the economic, social, and political environment within which state and non-state actors operate in the Nigerian oil sector. Implementation of liberal policies in the 1980s engendered many contradictions and created hostilities towards other forms of neo-liberal policies like deregulation. The introductory chapter frames the expectations of the book with background information towards understanding the complex nature of the efforts to deregulate the Nigerian oil sector. This includes historical background on globalized aspects of Nigerian oil sector reform, as well as the realities inherent in the attainment of neo-liberal ideologies in Nigeria as viewed from within the broad spectrum of political economy.
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Notes
- 1.
Conditionality is a term used to denote what a nation-state must do in return for receiving a loan, debt relief or financial assistance from International Financial Institutions (IFIs) and some bilateral creditors. The most sensitive of these conditions, in some parts of the world, is the insistence that the recipient nation must embark on democratization . The conditions attached to World Bank loans were called Structural Adjustment Credit, while International Monetary Fund (IMF) loans were carried out under a Structural Adjustment Facility (SAF). Over time the term structural adjustment became synonymous with failed policies that undermine democracy. This led the World Bank to rename the loans as Poverty Reduction Support Credits (PRSC), while the IMF changed it to the Poverty Reduction and Growth Facility (PRGF). The changes did not necessarily correspond to changes in conditionality; See Jones and Hardstaff (2005).
- 2.
This is a new approach to politics, economics and social studies in which control of economic factors is transferred from the public domain to the private sector. It is founded on the idea that governments limit deficit spending, reduce or cancel subsidies, embark on the reform of tax law, remove fixed exchange rates, discourage protectionism by opening up markets to competitive trade, and instigate policies of privatization and deregulation. In developing countries, “neoliberalism emerged less for political reasons and more as a result of the need to adjust to international requirements” (Rapley 2004, p. 77).
- 3.
Since the introduction of the IMF -controlled Structural Adjustment Programme (SAP) in Nigeria in the mid-1980s, the Nigerian government has failed to establish good governance in the country.
- 4.
Deregulation (sometimes called “market loosening”) means the removal of statutory barriers that prevent private operators from competing with state enterprises or ownership.
- 5.
Examples of these MNCs operating in the oil regions are Shell, Exxon-Mobil, Chevron-Texaco, Total, and Agip.
- 6.
Niger Delta comprises of the oil producing communities in the South-Eastern and South-South region of Nigeria.
- 7.
In Ghana, mining is acclaimed to benefit majorly the foreign interests and elites in Ghana. Conversely, the Chamber of Mines, the industry’s business organization, argues that mining companies have contributed immensely to the country’s development. For more understanding, see Ayee et al. (2011).
- 8.
- 9.
SAP was the brain child of Margaret Thatcher, the Prime Minister of the United Kingdom and Ronald Reagan, the President of the United States.
- 10.
Privatization is the transfer of state owned business organization and shares to the public, which has become a worldwide strategy for achieving sustainable economic growth and development.
- 11.
The Ibrahim Babangida-led military regime embarked on democratization in the early 1990s, the climax of which was the June 12, 1993 presidential election that was adjudged “free and fair”, but was annulled by President Ibrahim Babangida’s military regime to perpetuate himself in power thereby prolonging military dictatorship in Nigeria.
- 12.
For more understanding see the World Bank report on International Development Assistance Country Partnership Strategy for the Federal Republic of Nigeria (2010–2013), Report No: 46816-NG, July 2, 2009, p. 58. Many members of the Economic Team and Ministers in key government departments were former employees of the World Bank , i.e., Okonjo Iweala , Eze Kwesili, Olusola Soludo. This further substantiated Nigerians’ suspicion of the influence of IFIs in the government’s deregulation programs.
- 13.
See This Day, (2010) “Theory of Deregulation: Landmines and Pitfalls,” October 26.
- 14.
The prices of diesel and kerosene oil were increased and deregulated under the administration of President Obasanjo without any correspondent price parity with international markets. Nigerians felt deceived; hence their resistance to any form of fuel increase under the pretext of deregulation. The argument of increased productivity, gradual falls in prices due to market forces, and accountability which characterized deregulation did not attract the masses.
- 15.
Nigerians, under the leadership of the Nigerian Labour Congress (NLC) , have a history of mass protests and civil disobedience in reaction to increases in the prices of petroleum products.
- 16.
Meaning the complex deregulation in the sector that allegedly removes government subsidy from kerosene and diesel oil, while the government claims the sharing of the subsidy on PMS with consumers.
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Akinola, A.O. (2018). Introduction. In: Globalization, Democracy and Oil Sector Reform in Nigeria. African Histories and Modernities. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-70184-4_1
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