The Effect Of Fuel Scarcity On Nigerian Economy: A Special Reference To Enugu Urban:

1.2 Problems of Subject Matter

Problems associated with the effect of fuel scarcity in Nigerian are as follows: 

Lack of Qualified Personnel

Poor Management and Maintenance

Hoarding of Fuel

Inconsistent and Poor Government Responses

All these draw a set back on the smooth running of fueling supply. Hoarding fuel is a big problem because it makes some drivers to pack their cars at home and break to where they are going or enter transport. It is also a problem to students because sometimes student don’t go to school simply because there is no fuel in the filling stations because vehicles cannot move without fuel.

1.3 Objective of this Study

The objective of this study is to provide solutions to the above problems the following hypothesis will be looked into.

Good management and maintenance

Consistent and good government response

Government should enact embark on policies that will facilitate easy flow Government should try and reduce the price of fuel to be affordable by everybody.

1.4The Importance of this Study

Fuel scarcity is a big problem now in Nigeria and it has caused so many things in our country Nigerian. The importance of studying the area is:

To know how to organize things in other to achieve the set down goals or objectives.

The fuel industry is not a place to exhibit favoritism.

There was a case of a young daughter of a    Minister, a graduate of English in one of the Nigerian Universities. She was employed in the fuel industry to head a department tagged with the allocation of fuel to different parts of the country. Is she supposed to be there? No is the answer. She messed up the economy by not allocating purely on the basis but on a system no one can explain. “Tell on 24 Nov. 17, 1996”.

Moreover, the important is to know how to handle the facilities used for production of fuel;

to avoid the increasing breakdown of facilities and consequently going up in flames like Kaduna refinery. The fuel is very important product to the country’s economy and for its economic attributes to work out well, it must be readily available anytime it is needed.

Another importance of studying the areas is to know knowledge of does and don’t of the fuel industry not to be interested on how to make our own quick money by all available means.

To stop hoarding of fuel so that there will be easy flow of fuel, because this hoarding of fuel contributes in punishing the innocent citizens by creating artificial scarcity.

To stop struggling of fuel because it is now a common thing in the society. The news is not new to the people.

In 1992 Nigerian lost about N54.8 million out of N22.1 million due to smuggling of fuel.

1.5 Research Question

This study will be guided with some basic research question which will be administered to the respondents.

1. If hoarding and smuggling of fuel should stop especially in Enugu, can fuel scarcity stop equally.

2. Can any of our President’s contribution in Nigerian especially in Enugu help to stop fuel scarcity?

3. Can none payment of salaries to the distributors of fuel lead to fuel scarcity?

4. If the government should reduce prices of fuel, will fuel scarcity continue?

1.6 Significance of 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 them 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 in order 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 product from the rural area to urban zones because the cost fuel will be on a lower side.

Also from those research work, it will be kind of encouragement. In that when the cost fuel is low, the cost of transportation will be also low, and these can lead also to low price of commodity been transported.

1.7 Limitation of Study

The research work is limited to fuel scarcity in Nigeria with a case study of Enugu metropolis. This study was carried out purely as an academic exercise and therefore could neither receive any financial support form the government or any private enterprise. The limited financial resources of the researcher is thus a major handicap and thereby resulted in limiting the study only to Enugu metropolis. Time factor also proved a major constraint.

1.8 Definition of Terms 

 It is a person who makes a regular journey of some distance between home and work especially by trains.

Rocketed

 It is the rising quickly and suddenly of the price.

Consignment

 It is the act of sending something to person or place for sale

Economic 

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

Effect 

Change produced by a action or cause

Fuel 

Mineral resources that provide nuclear or internal energy requirement.

Scarcity

Something not been enough, that is difficult to obtain and much less then is needed.

Depot 

A place where fuel or oil is being store. Or A warehouse of anything.

Middlemen 

Trader who passes goods form the producers or form place where they are produce to the final consumer or final buyer.

Metropolis

 It is a chief city or the capital city to a country

Rampant

 Widespread and impossible to control.

Constraints

 It is the threat or use of force to direct the action of others.

Hitch

 It is to fasten by looking a rope or metal part over another object.

Mobility

 It is the state or quality of being movable or able to move quickly and easily. Not fixed on one position.

Smuggling

 It is the act of taking from one country to another unlawfully especially goods without paying the necessary tax.

Hoarding

 It is the act of storing secretly especially more than is allowed.