This chapter contributes further to explaining the context within which the interface between NIENew Institutional Economics (NIE) and NI happens—characterised by a multifaceted but complimentary regulatory domains. Such an understanding is necessary to also explain the rationale for regulation from an institutional point of view. This is also necessary in an environment where state monopolies have generally struggled to perform and deliver efficient outcomes. Various reasons have been advanced to explain the rationale for regulation. These include regulation as a mechanism to achieve developmental outcomes and a response to market failures which distorts incentives and increase transaction costs within the business environment and the economy as a whole.