Wednesday, 9 April 2014

Reasons for Deregulation

There are a lot of reasons for the deregulation of the downstream sector of the oil industry. The reasons range from the oil sector down to the industrial sector to the educational sector, rural development, infrastructure (communication and transport) health sector, economic investment (agriculture) petro-chemical and gas industry. Some of these reasons could be taken summarily as follows:
The Oil Sector:  A good reason for deregulation is that it will bring competitiveness and effectiveness; there will be enough domestic consumption, sharp practices like smuggling be drastically reduced. It will bring about public participation and more refineries will come, more employment opportunities, rural dwellers will be able to enjoy petroleum products and Nigeria will become a net exporter through various refineries rather than an importer.
With the Industrial Sector: The reason for deregulation will be to make and allow industries operate at full capacity with the meeting of their energy needs, thereby ensuring more employment opportunities for Nigerians.

This will also lead to saving of valuable foreign exchange, thereby leading to increased in foreign exchange.
On the Education Sector: The deregulation will be that due to increased revenue, government will be able to provide qualitative and quantitative education, level of enrolment will increase, quality of teachers standard and remuneration will improve educationally, disadvantage state will receive public enlightenment progpramme with focuses on the girl-child and leading to all around development in the educational sector in Nigeria.
The Rural Development: The reason for the deregulation of the downstream sectors is that it will allow government to be able to invest in rural development. Social amenities such as water, Electricity health, care and feeder road will be provided to ensure good and modernized environment.
The Aspect of Infrastructure: Deregulation as a reason for the downstream sector will allow infrastructure to be provided and maintained. Nigerians will have access to power supply on a regular basis, rural area especially the market will be accessible through feeder roads. Railways system will be resuscitated through receiving the overstressed highway network.
Health Sector: Another reason for deregulation is that it will create access to basic health services, life expectancy and mortality rate will be provided due to provision of more health centres/facilities and personnel, access to safe drinking water, education in malnutrition rates which is very much rampant and a general improvement in the level of curious mental sanitation.
On Economic Investment: Another reason for deregulation could mean, modern techniques in farming like irrigation, farm fertilizer, improved variety of seeds would be supplied to farmers who constitute about 50% of the Nigeria labour force for increase output. It will lead to satisfaction of domestic needs and by this bring about food surplus and food security, there could be more employment of rural community, enough raw materials for the revival of industries (Conservation of foreign exchange and encouragement of domestic savings and investment, provision of foreign exchange earning through export outlet and increase in the present share of the agriculture to the GDP from the present position of the nation; restoration of the groundnut pyramids, world producer of palm oil and kernel, Cocoa and Cotton.
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