The basic aim of deregulation is to ensure that economic decisions are determined by

Step 1: Analyze the question The question asks what deregulation is meant to achieve, specifically who or what should determine economic decisions once deregulation takes place.

Step 2: Explain the concept Deregulation is the removal or reduction of government control, rules, and restrictions in an industry or sector of the economy. In Nigeria, we have seen it in the downstream oil sector, telecommunications, and aviation. The government steps back from fixing prices and controlling who can operate. Prices, supply, and demand are then decided by the free interaction of buyers and sellers, which is what we call market forces.

Step 3: Evaluate the options

• A. Regulatory agencies: These are the bodies that enforce government rules. Deregulation reduces their control, so this is the opposite of the aim.
• B. Financial establishments: Banks and similar institutions may take part in the market, but they are not the main decision-makers that deregulation targets.
• C. Market forces: Correct. Deregulation aims to let supply and demand determine prices, output, and competition.
• D. The organized private sector: The private sector benefits from deregulation, but the aim is not to hand decisions to a particular group. The aim is to let the market work freely.

Step 4: Answer The basic aim of deregulation is to ensure that economic decisions are determined by market forces.

Exam tip: Link the words together: Deregulation = less government control = more market forces = more competition. Similar terms to remember are liberalization and privatization, which also move the economy towards the market. If you see "deregulation" in a question, think "let the market decide."