Those who have been following the Arguments for and against Deregulation of the oil industry in Nigeria, may have got the impression that deregulation connotes lack of control or indifference on the part of 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 direct control does not mean that it will surrender all it’s rights to the entrepreneurs who may want to participate in the industry.
Many Nigerians have become resentful of deregulation and in fact the Nigerian Labour Congress (NLC), has threatened to ‘deregulate’ the Government if it should go ahead with the deregulation plan.
Today, the deregulation of some of these sectors has broken it’s monopoly and introduced healthy competition to make things a little easier for Nigerians.
Following from this , the apostles of deregulation rightly heap all the blame for the problems associated with petroleum products distribution, in this country squarely on the Government, which owns all the refineries and which sells fuel to the local consumers through it’s agency , the Nigerian National Petroleum Corporation (NNPC).
In the same way ,the Government argues that if the Current NNPC monopoly were broken with the introduction of entrepreneurs to the refining and sales of petroleum products in the country, the Nigerian people would be all the better for it.
It stands to reason that once the Government continues to fix maximum prices for Petroleum Products in this 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 laugh last because competition will result in the availability of the products at reasonable prices.
This appears to be the sense in deregulation.
Th word deregulation emphasizes on when rules and controls are removed from a Business. – Paul Sampson.