The removal of government direct control and monopoly in manufacturing and service sectors is called __________

Step 1: Analyze the question The question asks for the term describing the removal of government direct control and monopoly in the manufacturing and service sectors. The key ideas are "removal of government control" and "monopoly."

Step 2: Explain the concepts

• Privatization: The transfer of ownership or control of government-owned enterprises to private individuals or companies. This ends the government's monopoly and direct control. Nigeria's Bureau of Public Enterprises (BPE) handles this, for example in the sale of NITEL and the power distribution companies (DISCOs).
• Specialization: Focusing on one particular task or product (division of labour). It has nothing to do with ownership.
• Commercialization: The government keeps ownership but runs the enterprise on business principles, charging economic prices to make a profit. The government still has control, so it is not "removal" of control.
• Decentralization: The spreading of power and authority from the central government to lower levels, such as states and local governments. It is about administration, not ownership of businesses.

Step 3: Solve by elimination

• B is out, because it concerns the division of labour.
• D is out, because it concerns the distribution of governmental power, not the economy.
• C is out, because under commercialization the government still owns and controls the enterprise.
• A fits: it removes direct government control and monopoly and opens the sectors to private participation.

Step 4: Answer The correct option is A. privatization.

Exam tip: Link the words to their meanings:

• Privatization = Private ownership (government lets go)
• Commercialization = Commercial methods (government still owns)

If the question mentions "removal of control" or "transfer of ownership," think privatization.