The Essence of Regulation and Control: A Dissection of their Realities in Nigeria

The Essence of Regulation and Control: A Dissection of their Realities in Nigeria

1. Introduction:

The constructs of "regulation" and "control" are frequently used interchangeably in public discourse, often creating confusion in understanding their true meaning and essence. However, it is important to grasp that 'regulation' is not synonymous with 'control'. A regulated practice is not necessarily a controlled practice, and this misunderstanding forms the crux of many misconceptions. This essay aims to provide clarity to this conundrum, specifically in the context of Nigeria, by dissecting the intricate nuances that distinguish regulation from control.

2. Understanding Regulation and Control:

To comprehend these terms, one must start at their definitions. Regulation, in its simplest form, refers to the rules, guidelines, or laws designed to manage conduct or processes. In contrast, control signifies the ability to influence or direct behavior or the course of events. While they may seem similar, the fundamental difference lies in the degree of influence and authority that each implies.

3. Regulation: Framework of Balance, Not Control:

Regulations set out a framework within which activities can be carried out. These guidelines or rules ensure that activities are conducted within acceptable boundaries for the benefit of all. Consider the Nigeria Communications Commission (NCC), responsible for creating and enforcing rules that guide telecommunication operations in Nigeria. The NCC is not directly involved in how MTN, Airtel, or any other telecom company runs their business on a day-to-day basis. Yet, it sets out regulatory frameworks like customer service standards and pricing guidelines. These regulations do not imply control over these companies but rather provide a structure that ensures fairness and quality service delivery.

In contrast, the Central Bank of Nigeria (CBN) is not just a regulatory body, but it also exercises control over monetary policy. The CBN controls the country's money supply, which affects inflation rates, interest rates, and the economy's overall stability. This control goes beyond setting guidelines. The CBN directly influences the course of economic events.

4. Sectors in Focus: Healthcare, Education, and Oil & Gas:

The Nigerian health sector provides a clear illustration of this distinction. The National Agency for Food and Drug Administration and Control (NAFDAC) is a regulatory body that ensures the safety and efficacy of food, drugs, and medical devices. Their role is to set regulations, not to manufacture or distribute these products, highlighting their role as regulators, not controllers.

In education, the Nigerian Universities Commission (NUC) sets minimum standards for all universities in Nigeria but does not control how each university should be administered. The NUC can't decide who becomes the Vice-Chancellor of a university or control the number of students admitted annually. Their regulations provide a framework for maintaining academic standards and quality assurance but do not equate to control.

The oil and gas sector in Nigeria paints a more complex picture. The Department of Petroleum Resources (DPR) sets the regulations guiding oil exploration, production, and sales. However, the Nigerian National Petroleum Corporation (NNPC), a state-owned oil corporation, often directly controls oil production and sales. This control has been a controversial issue in Nigeria, blurring the lines between regulation and control, and underscoring the necessity for a clear understanding of these concepts.

5. The Dichotomy of Regulation and Control:

In all these instances, it becomes clear that while regulation lays out a structure or framework for operation, control involves direct influence or interference in daily activities or processes. Control may sometimes be necessary, such as the CBN's role in monetary policies. However, in other situations, like in the NNPC's case, such control may lead to issues of transparency, efficiency, and fair competition.

Regulation ensures balance and fairness, making certain that all players in a sector can operate on a level playing field. It promotes transparency, accountability, and the public interest. On the other hand, control has the potential to stifle innovation, discourage competition, and can sometimes lead to inefficiencies or abuse of power.

6. Conclusion:

Regulation and control, while crucial components of governance, differ fundamentally in their nature and implications. A regulated practice in Nigeria, be it in the telecommunications, healthcare, education, or oil and gas sector, does not necessarily imply a controlled practice. Grasping this dichotomy is critical to fostering an environment that encourages innovation, competition, and growth while maintaining standards, ensuring fairness, and protecting the public interest. As Nigeria continues to navigate the intricacies of governance and public policy, the difference between regulation and control is a necessary consideration to ensure the country's development trajectory aligns with the principles of democracy, transparency, and fair competition.

In the end, for a vibrant and flourishing society, we need regulations to maintain order, ensure safety, and promote fairness. However, for creativity, innovation, and progress to thrive, we must refrain from unnecessary control that could stifle these catalysts of growth and development. After all, a regulated practice is not necessarily a controlled practice.

Thank you.

Aderogba Otunla