CENTRAL BANKING AND MACROECONOMIC UNDERDEVELOPMENT.PART 15

The issue of floating and petroleum market deregulating are also extremely related.These issues are control based.It requires government to know what to control and what they ought not to.Nigerians tend misrepresent the issue of deregulation and when government brought out the issue of deregulation the inference drawn from average Nigerians is price increase.So,anytime government talk about it,it tends to approximates price and I dont think they do understand what deregulation is all about.But if they do,will applaud government specifically when it decides to do it right and we cannot exonerate government from this distortion. Whereas the true meaning of competition is to introduce cometition so that everyone not just multinationals and independent oil companies can import fuel and we dont have to rely on NNPC alone.That is to say as far as they meet specifications,they can be granted license to import. This brings price down due to cutthroat competition and sellers will be at cost plus margin.Meanwhile now that we rely on NNPC to bring in fuel and we claim to enjoy subsidy,we are paying for corruption and inefficiency and fraud.What a bigger price to pay!We end up in the black market as the grand last resort. They simply mismanaged the process and poor communication results due to misinformation of the process.That is why NLC over the years has fought government over subsidy fraud.Hence,deregulation is not equivalent of price increase because it