ASSESSING THE EFFECTIVENESS OF COMPETITION POLICY IN PROMOTING COMPETITION IN THE NIGERIAN DOWNSTREAM SECTOR: A STUDY OF MARKET DYNAMICS AND FIRM PERFORMANCE

Abstract

This study assessed the effectiveness of competition policy in promoting competition in the Nigerian downstream petroleum sector, focusing on market dynamics and firm performance. Using a descriptive survey design, data were collected from 300 respondents comprising managers, employees, and regulators in major hubs of the sector. A structured questionnaire was employed, and the reliability of the instrument was confirmed through a pilot test (Cronbach’s alpha > 0.70). Data analysis involved descriptive statistics and regression analysis at a 0.05 level of significance using SPSS version 25. Findings revealed that competition policy has a significant positive influence on market dynamics (R² = 0.425, β = 0.652, p < 0.05) and firm performance (R² = 0.494, β = 0.703, p < 0.05). The study concludes that effective enforcement of competition policy enhances market efficiency, discourages monopolistic tendencies, and improves firm competitiveness. Recommendations include strengthening regulatory enforcement, promoting transparency, supporting smaller firms, and fostering collaboration among stakeholders.