Those who have been following the arguments for or against the deregulation of the oil industry in Nigeria may have got the impression that deregulation connotes or indifference on the part of the government.
But there is nothing so far from official quarters to suggest that deregulation will cause the government to relinquish its control of oil industry because the absence of oil industry does not mean it will surrender all its rights to entrepreneurs who may want to participate in the industry.
Yet the opposition express so far against deregulation stems from fear that government may leave Nigerians at the mercy of heartless cartel who will command height of the oil industry and cause the pump price of oil to rise above the means of most Nigerians.
As a result of such fears, many Nigerians have become resentful in deregulation and, in fact the Nigerian labour Congress [NLC] has threatened toderegulate the government if it should go ahead with the deregulation plan.
But Nigerians have not fared any better with the economy totally in the government control. Until recently, the most important sectors of the economy were in hands of the government, Today the deregulation of some of these sectors has broken its monopoly and introduce healthy competition to make things a little easier for Nigerians.
A good example is the stifling monopoly of the Nigerian airways.
Today, the traveller is king at the Nigerian airports as oppose to the air travels used to be under Nigeria airways monopoly. Before, it was almost easier for a camel to pass through the eye of a needle than travellers to board a plane. Following from this, the apostle of deregulation rightly heap all the blames for the problems associated with the petroleum products distribution in this county squarely on the government.
Which owns all the refineries and which sells petroleum product to its consumers through its agency, the Nigerian National Corporation [NNPC]. In the same way, the government argues that if the government NNPC monopoly were broken with the introduction of entrepreneurs to the refining and sale of petroleum product in the country, the Nigerian population will be all better for it.
It stands to reason that ones the government continuous to fix maximum prices for petroleum product in the country, the deregulation of the oil sector should bring some relief to the people by ensuring that wastage, corruption and inefficiency are reduced to the minimum. Consumers will also have the last laugh because competition will result prices.
This appears to be the sense in the deregulation.
Which of the following conclusions can the economy totally in the government be reached from the passage? control. Until recently, the most important
A. The deregulation of the economy will sectors of the economy were in hands of solve all the problems of petroleum the government, Today the deregulation of products and distribution some of these sectors has broken its B. The government is hell-bent on leaving monopoly and introduce healthy Nigerians at the mercy of a heartless cartel competition to make things a little easier C. Nigerians cannot buy fuel at exorbitant for Nigerians. A good example is the stifling prices monopoly of the Nigerian airways. D. The deregulation of the oil industry does not preclude the Government from exerting its influence
