The price and quantity of crude oil and petrol sold to other countries by Nigeria is fixed by the

Analyze the question: It asks which body fixes the price and quantity of crude oil (and petrol) that Nigeria sells to other countries. Think about which organisation sets oil production quotas and guides pricing among oil-exporting countries.

Explain the concept:

• ECOWAS is the Economic Community of West African States. It promotes regional trade and integration, not oil pricing or quotas.
• IMF is the International Monetary Fund. It deals with balance of payments support and global monetary stability.
• OPEC is the Organization of the Petroleum Exporting Countries. Nigeria has been a member since 1971. OPEC sets production quotas for members, which limits the quantity each country sells, and it influences the world price of crude oil.
• NNPC is the Nigerian National Petroleum Corporation. It manages Nigeria's oil industry, but it does not fix the price and quantity sold to other countries. It works within OPEC's quotas and world market prices.

Solution:

1. The question is about oil sold to other countries, which means the international market.
2. Quantity is controlled through OPEC production quotas, and price is shaped by OPEC's decisions and the world market.
3. So the body that fixes both is OPEC.

Answer: C. OPEC

Exam tip: Remember that OPEC = Quotas + Price for oil exporters. NNPC is the Nigerian company that handles the oil locally. When a question mentions international oil price or quantity, think OPEC.