ABSTRACT
This report on the problems of inadequate fuel Distribution in Nigeria is a
critical analysis of the causes of incessant fuel scarcity in Nigeria in recent
times.
The report exposes the negative parts being played and is still playing by some
Government Officials, special Task force on Petroleum products Distribution and
Black marketers. The recommendations go a long way to redirect the
government or anybody involved in the distribution of fuel in Nigeria.
TABLE OF CONTENTS
CHAPTER ONE:
INTRODUCTION
1.1 General
Background to the Study
1.2 Problems
Associated with the Study
1.3 Problems
that the Study will be Concern with.
1.4 The
importance of Studying the Area
1.5 Reference
CHAPTER TWO:
LITERATURE REVIEW
2.1 The
origin of the Subject Area
2.2 Schools
of Thought Within the Subject Area
2.3 The
school of Thought Relevant to the Problem
2.4 Different
Methods of Studying the Problem
2.5 Summary
2.6 References
CHAPTER
THREE:
CONCLUSION
3.1 Data
Presentation and Analysis of the Data (Highlight of the Study)
3.2 Recommendation
3.3 Conclusions
3.4 Reference
3.5 References
CHAPTER ONE
INTRODUCTION
Crude oil, which when
processed fuel is produced. It is one of the natural resources Nigeria is
endowed with; Infact, Nigeria is the World’s Sixth Largest producer of crude
oil. Before 1990, fuel distribution and management has been smooth and
effective before Nigeria started witnessing inadequate fuel distribution.
In 1996, Crude oil allocation for Local consumption was reduced from 3000,000
to 250,000 barrels per day. The Nigeria National Petroleum Corporation had been
supping crude oil for finished products, which was not in the interest of
Nigerians.
By this arrangement between October, 1994 and August, 1996, according to the
former Finance minister Mr. Anthony Ani, cost between eight and ten million
barrels of crude oil
1.1 GENERAL
BACKGROUND TO THE PROBLEM OF INADEQUATE FUEL DISTRIBTION:
The problem of
inadequate distribution of fuel in Nigeria and Enugu State in particular can be
attributed to so many reasons ranging from corruption by government
officials, bunkering, smuggling bureaucracy and insensitivity of government to
the plight of the masses.
The multi-facet problems
of fuel shortage in Enugu State became acute daring the petroleum and National
Gas senior Staff of Nigeria and National Union of Petroleum and National Union
of petroleum and Gas workers. There were cases of unrest due to the fuel
crises. The fuel shortage in Enugu then was so serious that the government had
to announce from time to time on media houses each petrol station that received
allocation from Nigeria National Corporation Depot in an effort to avoid
diversion. In the wake of the crises, motorist passed nights queering for the
purchase of fuel which are hard to come by.
1.2 PROBLEMS ASSOCIATED WITH
INADEQUATE FUEL DISTRIBUTION ON THE SOCIETY.
The problem associated
with inadequate fuel distribution are; during fuel scarcity, a lot of hardship
is meted to the generality of Nigerians both in the rural and urban areas.
People do a long distance
Trekking before getting
to their destination which motor vehicles could have done.
A lot of foodstuffs are
wasted due to lack of transportation to take them to markets. Motorist as well
as cyclists are put of the roads when they can not got fuel and subsequently,
loose their jobs. Sometimes, they can run out of patience and decide to take
laws into their hands and cause more economic havoc. For instance, recently,
members of the Sokoto State chapter of the Nigeria Motorcycle Transports
Association went on strike.
The action which almost
paralysed the economy of the State was to protest the non- availability of
petrol for members of the association to carry out their business.
Inadequate distribution
of fuel gives room for hoarding during fuel scarcity; another adverse
consequence of illegal sales of fuel is adulteration. Black market fuel sellers
have reputation for adulterine their illegal wares with kerosene and Diesel and
sell to unsuspecting motorists. The adulterated fuel ends up damaging vehicle
engines, even causes accidents and possibly loss of lives.
Another adverse effect
of hoarding and smuggling of petroleum products is that many people have become
rich through the illicit trade. These people do not contribute anything to the
economy and yet live- like kings in the society. Government also loose huge revenue
through the activities of these people.
High fuel prices indeed
deteriorate economy which are already in the throes of recession and help to
increase inflation and unemployment. No matter how short- live fuel scarcity
last, the economy generally are certain worse off for example. Transportation
fair are doubled and prices of goods and services will thread along the same
path. This is already telling on the state of Affairs in Enugu State as long
buses popularly called “Merry- Go- Round” that normally charged N10.00
now charged N20.00 (100%) increase and about to make a mess of the
economic gains the populace have enjoyed during this few months of Democratic
Rule.
Secondly, inadequate
fuel distribution have an effect on investment climate eg. Ade Holdings
Nigeria Limited is one of the business enterprises operating in Enugu
metropolis. This company produces Adesheen Hair Relaxer, Hair cream, setting
Hair lotion, Body jelly and lotion etc. This oranisation has hundreds of
workers (both indigenes and Non indigenes) on their pay roll and uses diesel
and electricity as source of power. It is pertinent to consider the fate of
these workers and their dependants during these incessant petroleum scarcity
experiences in the country. When a manufacturing firm like this organization
stops production retrenchment and stood off follows, thereby exposing the laid
off workers to temptation and frustration.
The frequent fuel
scarcity in the country put us at a disadvantage against foreign business
investors, as they may find the business environment very unconducive to
operate, thereby making Nigeria loose jobs and better living conditions.
National Electric power
authority is one of the indigenous parastals that uses diesel without doubt
anytime N.E.P. Sneezes 90% of Nigerians cough. Therefore, anytime there is
scarcity of diesel, electricity supply will not be constant and offices like
Water Corporation, Hospitals, Television and Radio stations will start to
render skeletal services. For sure water borne diseases will rear their ugly
heads.
1.3 PROBLEMS
THAT THE STUDY WILL BE CONCERNED WITH
The study will be
concerned through so many means like smuggling/oil bunkering:-
This is the earliest
danger to adequate fuel distribution in Nigeria, but was not given appropriate
attention. The menace of illegal bunkers and barrens were made known in 1989.
They operate in a mafia style like drug barrons. Their mission leads Nigeria
oil illegal to Neighboring countries thereby causing fuel scarcity. In Nigeria,
fuel smuggling is a thriving business in all boarder states of the federation.
Many dubious Nigerian businessmen smuggle fuel to Niger Republic.
A litre of kerosene
which should normally sell for N17 at the filling stations is sold
at N32 at some filling stations and black marketers sold it
at N40.
Furthermore, corruption
contributed more on the scarcity of fuel. In Nigeria, corruption have soiled
the hands of many business men and government officials. We read from the
dailies how Abacha’s reign. The importation of fuel was introduced as a
panacea, but instead it aggravated the problem as adulterated fuel was imported
which causes a lot of damages to cars. The said full rendered many vehicles
useless.
A petrol attendant in
Enugu conferred to the researcher, that imported fuel contained toxic which
sent some unlucky fuel attendants to the hospital. This act was perpetrated by
General Abada while his administration said that it was waving war against
indiscipline and corruption (WAI-C) making the abbreviation to look like war
Against indiscipline minus corruption. Fuel importation waste hard currency which
would have been of course saved or invested in more viable projects.
Vandalisation of
pipelines also concerned in inadequate fuel distribution . On Sunday, march 19,
2000, youths in Osisoma Ngwa Local Government of Abia State in their desire to
make quick money vandalized Nigeria National Petroleum Corporation oil pipeline
to scoop fuel, which later exploded and killed more than 50 persons. The biting
fuel scarcity presently particularly. In Eastern part of the country made
the ill fated mission so attractive that any amount of fuel taken to the black
market fetches good money for the owner with a liter selling between N50
and N30 instead of the official price of N22.
For years now, the oil
pipelines laid by Nigerian National Petroleum Corporation across the country
have been targets of vandalization especially in oil-producing areas. In most
cases, such tampering with oil pipeline had ended in disasters. The most
significant incident occurred at Jesse in Delta State in 1998 and up to 1ooo
persons were burnt to death.
In October 1999, the
Ijaw Youths in an effort to get their own Republic and has control over the oil
in their land, engaged in vanadalisation of NNPC pipelines and destruction of
lives and properties which culminate in killing 12 policemen at Odi in
Kolokuma/Opekuma Local Government Area of Bayelsa State.
The level of poverty in
the society is the factor that proper ordinary villagers to got involved in oil
bunkering. Moreover, the craze for wealth is also responsible. We are in a
society where everybody is ostentatious vandalisation of pipelines by illegal
bunkers in Jesse effects pumping of petroleum from Warri refinery to Enugu
Depot.
1.4 THE
IMPORTANCE OF STUDYING THE AREA
This report on the
problem of inadequate fuel distribution in Nigeria is important to study, since
it helps us to know the loopholes behind the problem of the subject matter.
Secondly, it analysis
the causes of inassant fuel scarcity in Nigeria in recent times.
Finally, it exposes the
negative part being played and is still playing by some government officials
especially task force on petroleum products distribution and black marketers.
And how government closes their eyes and encourages the booming trade at the
time Nigeria economy needed all the foreign exchange it could master to
survive.
Department | Banking and Finance |
Project ID Code | BFN0309 |
Chapters | 3 Chapters |
No of Pages | 55 pages |
Methodology | Null |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2349067372103 |
Contact Us On | +2349094562208 |
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