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THE EFFECT OF FUEL SCARCITY ON NIGERIAN ECONOMY

Format: MS WORD  |  Chapter: 1-5  |  Pages: 62  |  1680 Users found this project useful  |  Price NGN5,000

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ABSTRACT

This study examines the effect of fuel scarcity on Nigeria’s economy. Specifically, the study determines whether hoarding and smuggling if stopped or curtailed especially in Enugu, can prevent fuel scarcity equally, determines whether none payment of salaries to the distributors of fuel can lead to fuel scarcity and finds out whether government’s reduction of fuel prices, will affect fuel scarcity. The study employed the survey descriptive research design. A total of 141 responses were validated from the survey. The study adopted the frustration–aggression hypothesis. From the responses obtained and analysed, the findings reveals that hoarding and smuggling if stopped or curtailed especially in Enugu, can prevent fuel scarcity equally, presidential involvement can help to stop fuel scarcity in Enugu State. The study also found out that none payment of salaries to the distributors of fuel leads to fuel scarcity. The study recommends Management of NNPC and associated agencies should work against the found causative factors of petrol scarcity by applying an appropriate strategic management.

 

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Until the early 70’s, the mainstay of Nigeria economy was agriculture. Then the country was famed for her proficiency in the production of groundnuts hence the Kano groundnut pyramids, oil palm and the faster part of cocoa in the western part of the country. The discovery of oil in the country in commercial quantities brought about radical changes in the economy of the nation. All other sectors seemed to have gone into oblivion and indeed were abandoned thereby making the country to be totally dependent on oil for her foreign exchange earnings; not agriculture any more. All effort made since then to diversify the economy of the country have come to naught (Ovaga, 2012). As expected, the narrowing of the economy to a monolithic export commodity has its attendant drawback as oil by virtue of its importance to the economics of nations has inevitably become a subject of political manipulation. But the greater danger for Nigeria is that as a sole commodity of the nation and the inherent total dependency on oil has made the

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THE EFFECT OF FUEL SCARCITY ON NIGERIAN ECONOMY

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