Opinion
Debating The Deregulation Issue
There are several ways the public sector affects the supply of goods and services. They include direct provision, subsidisation of prices, specification and enforcement of regulations for private sector provision, and sometimes a combination of two or more of these ways.
It is economic bottlenecks, scarcities, apparent market failures in resource allocation, a specific shortage or abuse of monopoly or Oligopoly that create the socio-economic conditions that justify public intervention.
In Nigeria where there is widespread and chronic poverty, high and rising levels of unemployment, and wide and growing disparities in the distribution of income, it will be foolhardy to rely on the market system to allocate resources. Why? The functioning of the market system is spontaneous – blueprints for the use pattern of resources are not prepared in advance.. Market mechanism is often described as an action without programme. And as pointed out by Gerald M. Meier in his book Leading Issues in Economic Development: “the market mechanism is criticized as being ineffective, unreliable, or irrelevant for the problems now encountered by developing nations”.
It is against this backdrop that one appreciates the passion with which many Nigerians particularly members of the Nigerian Labour Congress (NLC) and Civil Society groups are opposing the deregulation of the downstream sector of the oil industry. On October 29, 2009, Labour and the Civil Society groups held a rally in Abuja in protest against the deregulation policy. To determine the popularity of the policy, the NLC President, Abdulwaheed Omar, during the rally, called on the Federal Government to subject it (the deregulation policy) to a national referendum.
What are the arguments against the policy. Believing that with the implementation of the policy, the pump price of petrol would rise above N100.00, labour is convinced that the poor masses would face untold hardship and every segment of the economy would be affected adversely.
It has also been argued that in a country such as Nigeria where there is no social security to cushion the effects of the current global economic crisis, this is not a holy time for the deregulation policy which will mean cutting down social spending. To make life easier for their citizens, in the face of the global economic meltdown, Europe, the United States of America (USA) and other countries across the world are increasing social spending by providing stimulus packages for their economies.
Besides, the implementation of the policy would face lots of problems as there is nothing to show that government has put in place a consistent and reliable policy framework which will guarantee investors’ confidence in the whole thing.
Worse still, there is no public education regarding the policy. Seminars and workshops are not being organised by government to explain to stakeholders their preparedness to implement the policy and to also elicit inputs from the people. So far, enough light has not been cast on the entire thing.
As part of the plan to reform the oil industry, the federal government on the other hand sees the deregulation of the downstream sector not only as a solution to the persistent fuel scarcity in the country but also as a means of conserving and directing the huge chunk of money spent in subsidizing oil importation to vital areas where it is needed in the economy.
The federal government has put the amount of money spent in sustaining the subsidy package within the last four years at about N2 trillion and that of 2008 alone at N654.76 billion. So the Minister of Finance, Mansur Muhter justifies government’s deregulation policy in these words: “We have found out that we are really subsidizing inefficiencies, fraud, racketeering in the whole production chain and in that context basically, given the competing needs for scarce resources, government felt we needed to do something. We are also subsidizing other countries.”
But all in all, the truth is that the federal government is not prepared for the implementation of its deregulation policy. The decision to postpone the implementation of the policy is therefore appropriate.
To prepare for the implementation of the policy is for government to do a whole lot of things to keep its house in order first. This involves providing level playing ground for all stakeholders and strengthening the industry for its effective and efficient operation. It involves making the country’s four refineries in Port Harcourt, Warrri, and Kaduna functional, and issuing licenses to individuals and the multinationals to set up private refineries. And it involves tackling the problems of infrastructure in the country, dealing with the Niger Delta dilemma, and addressing the lingering controversy over the Petroleum Industry Bill (PIB) which the Federal Executive Council has been pushing for approval by the National Assembly.
Nigeria is the sixth largest oil producer in the world. Its petroleum pump price should be one of the lowest in the world.
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Restoring Order, Delivering Good Governance
The political atmosphere in Rivers State has been anything but calm in 2025. Yet, a rare moment of unity was witnessed on Saturday, June 28, when Governor Siminalayi Fubara and Minister of the Federal Capital Territory, Chief Nyesom Wike, appeared side by side at the funeral of Elder Temple Omezurike Onuoha, Wike’s late uncle. What could have passed for a routine condolence visit evolved into a significant political statement—a symbolic show of reconciliation in a state bruised by deep political strife.
The funeral, attended by dignitaries from across the nation, was more than a moment of shared grief. It became the public reflection of a private peace accord reached earlier at the Presidential Villa in Abuja. There, President Bola Ahmed Tinubu brought together Governor Fubara, Minister Wike, the suspended Speaker of the Rivers State House of Assembly, Martin Amaewhule, and other lawmakers to chart a new path forward.
For Rivers people, that truce is a beacon of hope. But they are not content with photo opportunities and promises. What they demand now is the immediate lifting of the state of emergency declared in March 2025, and the unconditional reinstatement of Governor Fubara, Deputy Governor Dr. Ngozi Odu, and all suspended lawmakers. They insist on the restoration of their democratic mandate.
President Tinubu’s decision to suspend the entire structure of Rivers State’s elected leadership and appoint a sole administrator was a drastic response to a deepening political crisis. While it may have prevented a complete breakdown in governance, it also robbed the people of their voice. That silence must now end.
The administrator, retired naval chief Ibok-Ette Ibas, has managed a caretaker role. But Rivers State cannot thrive under unelected stewardship. Democracy must return—not partially, not symbolically, but fully. President Tinubu has to ensure that the people’s will, expressed through the ballot, is restored in word and deed.
Governor Fubara, who will complete his six-month suspension by September, was elected to serve the people of Rivers, not to be sidelined by political intrigues. His return should not be ceremonial. It should come with the full powers and authority vested in him by the constitution and the mandate of Rivers citizens.
The people’s frustration is understandable. At the heart of the political crisis was a power tussle between loyalists of Fubara and those of Wike. Institutions, particularly the State House of Assembly, became battlegrounds. Attempts were made to impeach Fubara. The situation deteriorated into a full-blown crisis, and governance was nearly brought to its knees.
But the tide must now turn. With the Senate’s approval of a record ?1.485 trillion budget for Rivers State for 2025, a new opportunity has emerged. This budget is not just a fiscal document—it is a blueprint for transformation, allocating ?1.077 trillion for capital projects alone. Yet, without the governor’s reinstatement, its execution remains in doubt.
It is Governor Fubara, and only him, who possesses the people’s mandate to execute this ambitious budget. It is time for him to return to duty with vigor, responsibility, and a renewed sense of urgency. The people expect delivery—on roads, hospitals, schools, and job creation.
Rivers civil servants, recovering from neglect and under appreciation, should also continue to be a top priority. Fubara should continue to ensure timely payment of salaries, address pension issues, and create a more effective, motivated public workforce. This is how governance becomes real in people’s lives.
The “Rivers First” mantra with which Fubara campaigned is now being tested. That slogan should become policy. It must inform every appointment, every contract, every budget decision, and every reform. It must reflect the needs and aspirations of the ordinary Rivers person—not political patrons or vested interests.
Beyond infrastructure and administration, political healing is essential. Governor Fubara and Minister Wike must go beyond temporary peace. They should actively unite their camps and followers to form one strong political family. The future of Rivers cannot be built on division.
Political appointments, both at the Federal and State levels, must reflect a spirit of fairness, tolerance, and inclusivity. The days of political vendettas and exclusive lists must end. Every ethnic group, every gender, and every generation must feel included in the new Rivers project.
Rivers is too diverse to be governed by one faction. Lasting peace can only be built on concessions, maturity, and equity. The people are watching to see if the peace deal will lead to deeper understanding or simply paper over cracks in an already fragile political arrangement.
Wike, now a national figure as Minister of the FCT, has a responsibility to rise above the local fray and support the development of Rivers State. His influence should bring federal attention and investment to the state, not political interference or division.
Likewise, Fubara should lead with restraint, humility, and a focus on service delivery. His return should not be marked by revenge or political purges but by inclusive leadership that welcomes even former adversaries into the process of rebuilding the state.
“The people are no longer interested in power struggles. They want light in their streets, drugs in their hospitals, teachers in their classrooms, and jobs for their children. The politics of ego and entitlement have to give way to governance with purpose.
The appearance of both leaders at the funeral was a glimpse of what unity could look like. That moment should now evolve into a movement-one that prioritizes Rivers State over every personal ambition. Let it be the beginning of true reconciliation and progress.
As September draws near, the Federal government should act decisively to end the state of emergency and reinstate all suspended officials. Rivers State must return to constitutional order and normal democratic processes. This is the minimum requirement of good governance.
The crisis in Rivers has dragged on for too long. The truce is a step forward, but much more is needed. Reinstating Governor Fubara, implementing the ?1.485 trillion budget, and uniting political factions are now the urgent tasks ahead. Rivers people have suffered enough. It is time to restore leadership, rebuild trust, and finally put Rivers first.
By: Amieyeofori Ibim
Amieyeofori Ibim is former Editor of The Tide Newspapers, political analyst and public affairs commentator
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