Economic Effect Of Fuel Scarcity In Nigeria (A Case Study Of Enugu Metropolis)

ABSTRACT

This research is based on the economic effects of fuel scarcity ithe n Nigeria.  The research was carried out to find out the extent to which the entire population in Enugu metropolis has suffered due to fuel scar, city. The population used for this study is the workers of NNPPC, car owners, businessmen and women and the entire population of questionnaireslis. The researcher used primary and secondary data which comprised of interviews and questionnaire to get information.From the data analysis, the researcher came up with the following findings:

1.                  The middlemen contribute to fuel scarcity

2.                  Transportation became high because of fuel scarcity

3.                  Fuel scarcity has led to a rise in the price of products in the market.

Based on the findings, the researcher recommends that:

i.          The government should hurry up with the maintenance of the leaden-down refineries to ease the problem of fuel scarcity.

ii.         Pipelines that led to the various depots should be checked regularly for any possibility of leakage.

iii. To avoid fuel scarcity, escorts should be assigned to each tanker driver to avoid diverting fuel occurring in approved areas.

iv. They should provide storage facilities so that even if brake down occurs there will still be available fuel to distribute to their various consumers.

v.         If fuel is being supplied to filling station owners, they should be checked to make sure that the fuel is sold to the consumers to avoid hoards

vi. The consumers are checked by the government to the seller of fuel to make sure that fuel is being sold to the consumer at a government pump price.

            TABLE OF CONTENT

CHAPTER ONE

1.0              introduction

1.1       An Overview of the study

1.2              statement of problem

1.3              Objectives of study

1.4              Statement of Hypotheses

1.5              Significant of the study

1.6              Scope of study

1.7              Limitation of study

1.8              Definition of other f terms

References

CHAPTER TWO

2.0              Review of related literature

2.1       History of oil industry in Nigeria (NNPC)

2.2              Nigerian’s Development and Oil Industry

2.3 Effects of the petroleum industry on Nigeria’s economic development (positive and Negative effect).

2.4              Function/Role of Nigerian National Petroleum Corporations (NNPC)

2.5              NNPC and distribution of fuel in Nigeria

2.6              Problems of Fuel Distribution in Nigeria

2.7 Economic Effect of Fuel Scarcity in Nigeria

2.8              The Role of task-force on the Management of Fuel Scarcity

2.9              Scarcity of other essential commodities and its effect.

Reference

 

CHAPTER THREE

3.0       Research design and methodology

3.1       Source of data collection

–                      Primary source

–                      Secondary source

3.2       Area of study

3.3       Population of study

3.4       Sample size determination

3.5       Instrument of data collection

3.6       Distribution of Data Collection Instrument

3.7       Method of Analyses of Data

Reference

CHAPTER FOUR

4.0       Data Presentation and Analyses

4.1              Presentation and analyses

4.2              Data analyses

4.3              Test of Hypotheses

4.4              Questionnaires

CHAPTER FIVE

5.0              Summary of findings, conclusion and recommendation

5.1       findings’

Conclusion

Recommendation

Reference

Bibliography

Appendix (Questionnaires)

LIST OF TABLES

1.                  Number of questions regarding distribution and several responses received.

2.                  Responses received with regards to whether the middlemen have been contributing to fuel scarcity.

CHAPTER ONE

1.0  INTRODUCTION

1.1   AN OVERVIEW OF THE STUDY

In the past Nigerians solely depended on the exportation of agricultural products as their source of income,  This continued until the discovery of the presences of the presence of oil in our country, especially in part of Harcourt. This made them (Nigerians) divert from Agriculture to the exportation of oil to other countries, which was fetching them much money even till the present time.

There are many subsidiary oil companies scattered all over the country but the biggest among them is in port-Harcourt and it is called the Nigerian National Petroleum Company (NNPC). It is from here that crude oil is extracted from the ground and refined to get those components like fuel, kerosene, and gas.

There are depots scattered all over the country like Shell Port-Harcourt, NNPC Enugu, Eif Oil Company, Warri Pipeline are directed towards these oil companies to facilitate distribution.  Tanker drivers and other dealers will load from the depot and distribute to filling stations, then the consumers will buy from the filling stations.

Fuel supply had been moving smoothly in the country before the announcement of the budget by the head of state in January last four years 1999. It was in February 1999 that the whole issue of fuel scarcity started.  This has made it difficult for the government to accomplish that which it prop something is insufficient        STATEMENT OF THE PROBLEM

The word “Scarcity” means when there is insufficiency of something.  Since fuel is insufficient it is termed as fuel scarcity.

In the past, there had not been any services or fuel scarcity, everything was moving smoothly, and the industrialist public and private did not have any problems.  Econothe the price of goods and services, were affordable by the people. Car owners can just go to filing station and buy fuel at a normal price of N22.00 per liter and with much ease.

Things were moving smoothly in the country and this part of Enugu metropolis until 1994 when we had one case of fuel scarcity not until on up till this movement of this study.

Because of fuel scarcity, people are so desperate to buy fuel for their businesses. For this reason, whenever any information passed concerning the presence of fuel in any filling station, car owners would go there and queue -up. Some of them will have to sleep in the filling stations for a day or more than two days while waiting for their turn.  People or car owners when they cannot buy fuel in any filling station, are forced to buy from the black market at an exorbitant price.  Some people use big gallons to buy fuel that will serve them for some days.

For the reason that there is insufficient fuel in the filling station, people sell fuel in ration so that everybody present will buy.  The car owners who think the fuel will not reach them will start jumping the queue, thereby causing fights among themselves.  Because of this reason, the filling station owners list soldiers so that there will be a peaceful and orderly queue in the filling stations. Fuel scarcity are sometimes artificial in the sense that during the Christmas period. Filling station owners will just hoard their fuel to sell at a high price.

1.3              OBJECTIVES OF THE STUDY

This study has the following objectives:

–                      To find out the causes of fuel scarcity

–                      To recommend what can be done to solve the problem of fuel scarcity.

–                      To find out how the fuel scarcity has affected businessmen and women civil servants etc. (the total population of the Enugu metropolis).

1.4                   STATEMENT OF HYPOTHESES

Ho:      The middlemen have not been contributing to fuel scarcity.

Hi: The middlemen have been contributing to fuel scarcity

Ho:      Fuelthe  scarcity is not the cause of high cost of transportation

Hi:       Fuel scarcity is the cause of high cost of transportation

1.5       SIGNIFICANCE TO THE STUDY

This study will be of great benefit to the Nigeria National Petroleum Company (NNPC) who is not the sole cause of fuel scarcity.  This study will help to find out those people or those things that contribute to fuel scarcity and take drastic measure to combat them.

This study or research will be of immense benefit to the government because if there is fuel scarcity, it then means that crude oil is also insufficient by this; the government will not have enough oil to transport to get foreign exchange.

This study will also be of great benefit to car owners and businesses because if the fuel scarcity is rectified and resolved all business will start improving and progressing.

From this study, the rural drivers will find it easy to transport their farm products from the rural area to urban zones because the cost of fuel will be on the lower side.

Also, the research work will be a kind of encouragement.  When the cost of commoditiesobeinghe cost of transportation is low, this can lead to the low prices of commodities being transported.

1.6              SCOPE OF THE STUDY

This study is carried out in Enugu metropolis to study the operation of the Nigerian National Petroleum Company (NNPC) and the middlemen.  The study is only based on petrol alone and not on kerosene or gas- generally.

1.8                   DEF   –           Punishment of another country by reducing or stopping trade with it.

Effect –           Change produced by an action o requirements resources that provide nuclear or internal energy requ        Something not been enough, that is difficult to obtain and is being stored mu           A place where fuel or oil is being stored. Or A warehouse of anything.

Middlemen      –           Trader who passes goods from the producers or from the place where they are produced to the final consumer or final buyer.

THE ECONOMIC EFFECT OF FUEL SCARCITY IN NIGERIA CASE STUDY OF ENUGU METROPOLIS)

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