The privatization exercise in Nigeria is a move towards a____________

Step 1: Analyze the question The question asks what kind of economic system privatization moves Nigeria toward. Privatization means transferring ownership or control of government-owned enterprises (like NITEL, power companies, refineries) to private individuals or companies.

Step 2: Explain the concept

• Command economy: the government owns and controls most resources and decides what to produce (e.g., the former Soviet Union).
• Mixed economy: both the government and the private sector play significant roles.
• Subsistence economy: people produce only enough to feed themselves, with little or no trade.
• Market economy (free enterprise): private individuals and firms own resources, and prices, demand and supply drive decisions, with minimal government involvement.

Step 3: Solution Privatization reduces government ownership and increases private ownership. That shifts the economy away from state control and toward private-sector, price-driven decision-making. So the direction of movement is toward a market economy.

Is "mixed economy" a trap? Nigeria is already a mixed economy, since it has both public and private sectors. The question asks what privatization moves it towards, and the direction of change is greater private ownership, which is the market economy. In JAMB's standard marking, the answer is the market economy.

Step 4: Answer The correct option is D. market economy.

Tip: Link the keywords:

• Privatization, deregulation, liberalization → market economy
• Nationalization, indigenization (state control) → command/socialist economy

Remember that privatization means "moving to private hands," so the destination is the market.