Price Deregulation and Comsumers’ Welfare in the Globalised Economy: The Nigerian Experience.

Abstract

Price deregulation is viewed in most economies of the world as the effective way of securing and sustaining consumer^’s welfare. This is because with a given amount of consumers^’ income and budget constraint, the consumers are able to maximize their satisfaction from available varieties of products they need and use. This paper therefore examines the likely economic conditions that could cause a distortion in price deregulation and the associated impact on consumers’ welfare. Factors affecting price deregulation in Nigeria are presented and discussed and recommendations such as the issues of traders/sellers association characterized in many Nigerian markets have to be abolished to enable free flow of goods and services to be determined by the interaction of demand and supply. This means that any seller is free to enter the market to dispose his/her goods without interception by any agent. If this is followed, it will help to restore the dignity of consumers in the market and others in conformity to global economic practices.