ABSTRACT
This research study
focuses on the impact of scarcity of petroleum products in Enugu State a vivid
study on Enugu and its environs. The study tries to look in the
researcher point of views on what should be done for continuous flow of
petroleum products in Nigeria, Enugu State in particular.
The research consulted some literatures related work, like Tijani Alawe (2002)
African Journal of Business and Economic Research vol. 2 Awowele Francis B.
(2003) Prof. Jerry Gana government spokesman blamed the shortage on sabotage
daily Champion, March 20.
And this work was design purposely to find the root cause of fuel scarcity to
analyze critically the impact of oil scarcity in Enugu State and entire economy
to offer meaningful suggestions as to find a lasting solution.
Method used in the collection of data are primary and secondary method in the
primary data collection method, personal interview, questionnaire personal
observations were adopted within the study area of Enugu State.
Also secondary data
collection was used as an additional source of data, the use of literatures
related textbooks, newspaper, journals and other forms were adopted.
One may conclude
therefore that the practice of strategic management in the corporation is not
yet total or fully adhered to professional to be able to create a very wide
margin of performance safety.
Furthermore, government
should review the margins of the oil marketers close to the recent levels that
existed prior to the recent changes in the price of products. This
pricing strategy would terminate all the gully developments and ensure that
product reach the filling stations.
The following solutions
are recommended to put an end to petroleum products scarcity in Nigeria, Enugu
state in particular.
NNPC should try to
increase the volume of crude oil produced, and also try to increased the actual
amount of crude oil reserve for strategic reasons.
It is not too much to
has new refineries, rehabilitate the old existing ones at home.
They should be
continuous training and training of experts and staff to improve individual and
corporate competence.
The research findings
were given possible solutions which when applied effectively would stop this
ugly phenomenon of petroleum scarcity in Enugu State.
TABLE OF CONTENTS
CHAPTER ONE:
Introduction
1.1
Background of the
study
1.2
Statement of the
problem
1.3
Purpose of the study
1.4
Scope of the
study
1.5
Research
questions
1.6
Significant of the study
References
CHAPTER
TWO:
Review of related
literature
2.1
Literature
review
2.2
Origin of petroleum product
scarcity
2.3
Causes of petroleum product
scarcity
2.4
Smuggling of petroleum
products
2.5
State of Nigerian
refineries
2.6
Roles of petroleum
products
References
CHAPTER
THREE:
Research design and
methodology
3.1
Research
design
3.2
Area of the
study
3.3
Population of the
study
3.4
Sample size and sampling procedure
technique
3.5
Instrument for data
collection
3.6
Method of data
collection
3.7
Method of data
analysis
References
CHAPTER
FOUR:
Data presentation and
analysis
4.1
Presentation of
data
4.2
Analysis of
data
4.3
Summary of
results
CHAPTER
FIVE:
Discussions,
recommendation and
conclusions
5.1
Discussion of result
findings
5.2
Conclusions
5.3
Implications of the research findings
5.4
Recommendations
5.5
Suggestions for further
research
Bibliography
Appendix/appendixes
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
The Nigerian Economy can
largely be described as one with a strong petroleum industry super imposed over
an undeveloped industrial base. Presently Nigeria is growing into a
mono-economic country by depending majorly on oil revenue. The dominance
of oil production at the end of the civil war (1967 – 1970). It usually
became predominant after the fuel price increase of 1973/74. Most
recently is the one about to struck the nation now, taken from Daily Champion
Newspaper. Monday March 17, 2003, “fuel price like NLC threatens showdown
with FG” was the caption. Which the NLC and TUC later embarked on,
started from June 30 and suspended it July 8, 2003. I wonder were we are
heading to, I doubt if the federal government understands, that the comfort of
her citizens is the pride of a government. Fuel supplies the federal
government revenue of about 90% of the countries foreign exchange and supply
over 75% of federal government revenue.
Fuel scarcity which
struck the nation in recent times appears to be continuing without end.
Disturbing as the picture might be, the situation on the ground leads to
massive suffering of our people including oil producing states, Delta State in
particular, it also shows that a petroleum endowed nation which is one of the
world, major producers and a member of the organization of petroleum.
Exporting of 1.865 million barrels and one whose four refineries have combined
production of 445,000 barrels per day is in the threes of domestic oil
shortage. The shortage has a great impact towards the life of the Enugu,
it makes majority of kerosene consumer who cannot afford to buy it at black
market prices, to adopt the habit of using firewoods, which is unusual to an
oil producing state Enugu State. It also characterized by the long queue
of vehicles in filling stations. Some of these vehicles, queue for about
four or more days to obtain fuel at exorbitant prices. Taking a critical
view of this problem, one would discover that “there is a long list of players
from the supply of petroleum products through the depo to the end users.
Some of the participants in this chain of distribution have acquired the role
of middlemen admits Mr. Ekeh K. E. the then managing director of the Nigerian
National Petroleum Corporation (NNPC).
These middlemen operated
from a seeming lack of control. The cause of petroleum scarcity could be
traced to a complex process; these many people and actions contribute from
crude oil through refining the PPM (Pipeline and Product Market Company) the
tanker drivers and owners independent marketers, retailers and consumers will
collectively contribute knowingly or unknowingly to petroleum scarcity by their
acts of omission or commission.
The ugly development in
which roadside peddlers have abundance of petrol while the filling stations are
empty also cries for critical attention.
1.2 STATEMENT
OF PROBLEM
This research work is
motivated by an interest in finding a solution to the unending fuel scarcity in
our filling stations. This fear of petroleum scarcity ought not to exist
in our oil-producing country with massive investments in our four petroleum
refineries (Warri, Port Harcourt, Kaduna and Elema). It is puzzling and
tragic that the country’s major source of income has become the harbinger of
inconvenience to the citizens and in particular Deltans that has the major
petroleum resources of this nation.
However, the problem, is
to find out the extent to which fuel shortage has affected the entire economy,
what are the options left for the government in solving the problems
left? How has it affected the common man in the street?
In view of these
complexities government needs to consider with utmost urgency, other
arrangement for managing its oil sector efficiently as a catalyst for national
development rather than a source for easy money and personal interest. It
is quite obvious from what we seen day to day about the random rise of fuel
price. If I may say the problem is highly affecting the masses in their
economic lives.
The essence of good
governance is the interest of the masses which fuel scarcity has turned up side
down.
1.3 PURPOSE
OF THE STUDY
The purpose of this
study is to
(a) Find
the root cause of fuel scarcity
(b) To
analyze critically the impact of oil scarcity in Enugu state and entire economy
(c) To
offer meaningful suggestions as to find a lasting solution
The need for this study
emanated as a result of a persistent fuel scarcity in the nation. This
work will no doubt cover the smuggling of petroleum products, problems of our
four major refineries, why these refineries do not produce up to full
capacity. It will indeed look effects on the growth of the economy.
Finally this work will
create the awareness and give insight of the actual picture of fuel scarcity
and the associated danger it will create if not checked.
1.4 SCOPE
OF THE STUDY
These are some
indispensable constraints that affects research works most importantly is the
non availability of financial resources to be used in traveling to the
headquarters of major oil companies like Cherton, Shell BP and Golf oil, all
situated in Lagos. Much as the study is not aimed at discrediting any
individual or group or any constituted authority. Most people in
possession of relevant information. Find of difficult to release them
suspecting that to do so would lead to their being relieved of their posts.
To enquire information
from NNPC is like chasing a white Elephant. It was made clear that facts
and figures about oil will guard secret. The study is limited to
Newspapers, past literatures, textbooks and questionnaire from commercial and
private users, where I get practical facts.
1.5 RESEARCH
QUESTIONS
(1) What
are the causes of petroleum shortage in Enugu State?
(2) Does
in adequate manpower has an impact in the scarcity of petroleum products?
(3) Does
the scarcity of the petroleum products affect the overall economy of the state?
(4) Are
the refineries in order?
(5) Is
there any measure to combat the hording of petroleum products?
1.6
SIGNIFICANCE OF THE STUDY
This study will check:
(a) The
impact of fuel scarcity in transportations
(b) Unemployment
(c) Agriculture
(d) Oil
revenue
Recently the (NLC)
National Labour Congress threatens showdown fuel price hike (Daily Champion
March 17, 2003) which later commenced on June 30 and dissolved on July 8,
2003. The fuel scarcity has gone a long way affecting every aspect of our
economy.
Talk about
transportation a part of economic sector has increased that many people could
not afford to go to their various working places as usually, some resort to
walking to their offices which will take a long time and will affect their
ability to work. The problem of petroleum scarcity is practical.
Petroleum scarcity has a
well-created unemployment when there is scarcity, most energy source industries
would close down these by throwing a lot of workers to the unemployment
market. This will also affects the road transport workers and their
drives, which eventually led to serious disorder. Demand for oil is a
derived demand. Motor spirit for instance is demanded chiefly for the
services it renders in the engine, because of the vital importance of oil in our
economic life, its shortage has brought untold hardship and powerful effect on
labour force.
An economy in crisis of
low capacity utilization mighty lay off workers and in the long run increase
unemployment.
Agriculture, which is
one of the most important requirements for existence of man, was adversely
affected by the scarcity of petroleum products. Production is not
complete until it gets to the consumers. During the period of scarcity
farmers found it difficult to convey their farm product to market which
resulted to a large loss as most of the perishable products get spoilt due to
lack of adequate preservative method and lack of warehouse. This
development was not unconnected with the exorbitant cost of transportation
which emanated from the scarcity of fuel.
Oil revenue, the federal
government lost about 150 million dollars (about N3.3 billion) from oil export
during the NUPENG/PENGASSON strike in July and August 1994 and also billions of
naira at this present NLC and TUC strike embarked on June 30 to July 8,
2003. This shows that petroleum scarcity has really done much damage to
our economy. This industrial action happens almost every time there is
petroleum shortage in the nation. It is no gain saying that oil is the
main stay of Nigerian Economy hence an acute shortage is bound to ground the
economy. As a result there has been a considerable fall on the accruing
to Nigerian which will definitely lead to budget deficit. Project stated
for completion many not get government would be battling its balance of payment
deficit.
Department | Business Administration and Management |
Project ID Code | BAM0135 |
Chapters | 5 Chapters |
No of Pages | 60 pages |
Methodology | Chi Square |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2347043069458 |