Deregulation

Wouldn’t Deregulation Not Further Impoverish Nigerians?

November 24, 2014 // 0 Comments

Frankly, it is the present arrangement that is dynamic in responding to situations. In the past, it was only in Abuja, Lagos and Port Harcourt that products were bought at official prices sometimes. If we agree that a greater majority of Nigerians live outside these few cities, this means that it is only a minority of our people that are the beneficiaries of the highly subsidised products. Deregulation is therefore a policy that will swing the pendulum to the advantage of the majority of our [...]

After Deregulation, Would Petroleum Prices Rise?

November 24, 2014 // 0 Comments

The prices of these products will certainly not be as obtained now. However, the new prices will not be so high as to dig a big hole in the pockets of our compatriots. Remember that the new prices of products will be determined not by government fiat, but by the forces of supply and demand, and by competition. Competition, you know, has a way of forcing down prices. It also has a way of ensuring that companies have a tight rein on production cost such that wastes that could be passed on to [...]

How Are Marketers Regulated In Such A Free Market?

November 24, 2014 // 0 Comments

The Petroleum Products Pricing Regulatory Agency (PPPRA) was established to superintend the deregulation process and ensure that participants in the downstream sector operate within acceptable limits. With competition, there will be no monopoly. Competition brings out the best in terms of creative response to issues and services provided by stakeholders. The telecommunication industry in Nigeria has changed for good with the advent of Global System of Mobile (GSM) communication. Within two [...]

Past & Present – The Difference

November 23, 2014 // 0 Comments

In the past, government tried either ‘appropriate pricing’ or ‘price adjustment’. Those were mere palliatives and not the solution to the comatose process of supply and distribution of petroleum products in the country. Now that the government has opened up the sector to competition, scarcity will be a thing of the past. The present arrangement will allow for competitive pricing which will break the monopoly being enjoyed by NNPC. Deregulation is indeed a more [...]

Why Does the Government Want to Deregulate?

November 23, 2014 // 0 Comments

The Federal Government wants to deregulate the downstream sector, of Nigerian oil industry in order to: Ensure that petroleum products are made available to the consumers in an uninterrupted manner; Eradicate waste and corruption which are consequences of tightly regulated economy; Ensure that the supply and distribution of petroleum products are orderly and consumer-friendly; Channel money realized from the exercise to development projects that will be beneficial to the majority of the [...]
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