The impact fuel scarcity on nigeria economy

Thesis Overview

<p> </p><p><strong>1.0 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; </strong><strong>INTRODUCTION</strong></p><p><strong>1.1 &nbsp;BACKGROUND OF THE STUDY</strong></p><p>This is to say that in the past Nigerians solely depended on the exportation of agricultural product for their source of income. &nbsp;This continued until the discovery of the presence of oil in our country, especially in part Harcourt. This made them (Nigerians) to divert from Agriculture to the exportation of oil to other countries, which was actually fetching them much money even till this present time.</p><p>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 refined to get those components like fuel, kerosene and gas.</p><p>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. &nbsp;Tanker drivers and other dealers will load from the depot and distribute to filling stations, then the consumers will buy from the filling stations.</p><p>Fuel supply has 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. &nbsp;This has made it difficult for the government to accomplish that, which it proposed to do the budget.</p><p><strong>1.2 &nbsp; &nbsp; </strong><strong>STATEMENT OF THE PROBLEM</strong></p><p>The word “Scarcity” means when there is insufficiency of something. &nbsp;Since there is insufficiency of fuel it is termed as fuel scarcity.</p><p>In the past, there has not been any services fuel scarcity, everything was moving smoothly, the industrialist both public and privates, does not have any problem. &nbsp;Economically the price of goods and services, were affordable by the people. Car owners can just go to filling station and buy fuel at a normal price of N22.00 per liter and with much ease.</p><p>Things were moving smoothly in the country and in this part of Enugu metropolis until 1994 when we had one case of fuel scarcity till this moment of this study.</p><p>Because of fuel scarcity, people are so desperate to by fuel for their business. For this reasons, whenever any information was passes concerning the presence of fuel in any filling station, car owners will go there and queue -up. Some of them will have to sleep in the filling stations a day or more than two days while waiting for their turn. &nbsp;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. &nbsp;Some people use big gallons to buy fuel that will serve them for some days.</p><p>For the reason that there is insufficient fuel in the filling station, makes people sell fuel in ration so that everybody present will buy. &nbsp;The car owners who think the fuel will not reach them will start jumping the queue, thereby causing fights among themselves. &nbsp;Because of this reason, the filling station owners invite soldiers so that there will be peace 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 in order to sell at a high price.</p><p><strong>1.3 &nbsp; &nbsp; </strong><strong>OBJECTIVES OF THE STUDY</strong></p><p>This study has the following objectives:</p><p>– &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; To find out the causes of fuel scarcity</p><p>– &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; To recommend what can be done to solve the problem of fuel scarcity.</p><p>– &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; To find out how the fuel scarcity has affected the business men and women civil servant etc. (the total population of Enugu metropolis).</p><p><strong>1.4 &nbsp; &nbsp; </strong><strong>RESEARCH QUESTIONS</strong></p><p>The following research questions were formulated by the researcher:</p><p>– &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; What are the economic effect of fuel scarcity in Nigeria?</p><p>– &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; What are the causes of fuel scarcity?</p><p>– &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; To what extent has fuel scarcity has affected the business men and women civil servants in Enugu metropolis?</p><p>– &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; What are the possible solutions to the problems of fuel scarcity in Nigeria?</p> <br><p></p>