Deregulation:

The policy of deregulation refers to government removal of official barriers to competition in an industry that was originally organised monopolistically. Such barriers include sole licenses (entry barrier) and minimum quality standards. Thus, deregulation creates competition and encourages more companies to supply the market at competitive price levels.

Proponents of deregulation argued that the policy would lower prices, increase output, and eliminate bureaucratic inefficiencies. On the other hand the critics contended that, if not well packaged, it would result in gradual monopolization of the deregulated industry by one or two firms, higher prices, diminished output, deteriorating service, and industry instability due to resulting merger, acquisition and takeover.

In Nigeria, deregulation has occurred mostly in the telecommunications and postal service industries with significant gains in terms of adequate supply and improved quality of essential services. However, the deregulation in the banking industry has caused increased corruption, loss of job, merger and acquisition.