“FUEL CRISIS” A COG IN THE WHEEL OF ECONOMIC PROGRESS OF NIGERIA (A CASE STUDY OF N.N.P.C)
1.1 BACKGROUND OF THE STUDY 3
2.1 THE DISCOVERY OF BLACK GOLD 12
3.1 RESEARCH DESIGN 46
INSTRUMENT 49
INSTRUMENT 47
4.1 TESTING OF HYPOTHESIS 53
RESPONSES 57
5.1 DISCUSSION OF RESULT 72
REFERENCES 79
APPENDICES. 81
The content of this work is a kind of revelation to the readers on why the very gift of nature has showered on us, has been mismanaged thereby throwing this nation into a deep pit that will not be easy to come out hence the title “Fuel Crisis; a Cog in the Wheel of Economic Progress of Nigeria”. Therefore the need arises to find out the causes of this problem and the necessary solutions.
This piece goes into detail on the historical development of oil and how it boosts our economy in relation to financial growth and otherwise.
Today, there are so many problems emanating as a result of the mismanagement of crude oil nature has given us. Unlike before there is now scarcity of fuel in the country which is hazardously affecting every other sectors of the economy thereby reducing national income and inflating cost of living.
Therefore the purpose of this study is to find out the solutions to various problems in our oil sector and how to revive it.
CHAPTER ONE
INTRODUCTION
Petroleum in Nigeria is the major contributor to the gross domestic product. Before the discovery and exploitation of oil in commercial quantity, Agricultural products were the main stay of the economy. This was abandoned as a result of the exploitation and disposal of crude oil. Billions of dollars from petrol have no doubt moved Nigeria into a major player in the international market. It was contributed that if Nigeria had effectively employed about half of its windfall and earnings from oil, its success would have been close to the economics of the “Asian Tigers”, the emergent developing countries of Asia.
Despite the mismanagement, the nation still massively depends on oil as a key foreign exchange earner. Presently between 75% and, 80% of the revenue of the foreign exchange earner. Presently between 75% and 80% of the revenue of the federal government are accrued from the oil sector.
The Nigerian economy was supplied with petroleum products through imports by multinationals like Shell, BP, and Shell among others, prior to the commissioning of the oil Port Harcourt refinery in 1966.
As the economy expanded in the seventies, the production from this 35,000 Barrel Distribution refinery became grossly inadequate to meet the demand. Serious nationwide shortages resulted. As a result of this, some of the major sectors of our economy were affected even up till today. Government, as a result appointed the Oputa Panel of inquiring in 1975 to examine the root cause of the shortage. Based on their findings, government through the N.N.P.C took over the importation of petroleum products into Nigeria and started the construction of refinery and storage facilities and pipelines to link these storage centers. This culminated in the construction and commissioning of Warri Refinery in 1978 and Kaduna refinery in 1980. Government’s pursuit of self sufficiency in refined petroleum products led to additional investment in the expansion of the oil Port Harcourt Refinery, pipelines and depots interline and so many other constructions being held. The decision by government to construct products distribution pipelines over a wide expanse of the territory of Nigeria brought the nation into the modern era in this vital sector of the energy industry. Despite all these efforts by the government to supply petroleum products both internally and externally, the nation is still being strike by fuel crisis.
On 8th to 11th June 2000, about the whole sectors in the Federation went on strike as a result of fuel scarcity and its price increment. It was on the verge of the strike that the federal government was compelled to bring down the price of fuel to N22 per litre. It was later increased to N26 per litre, which was the current price until recently on early December 202 another fuel shortage were being smelt. On middle of February 203 another fuel crisis was seen striking this nation. This time around, the one more severe than what we had been experiencing before.
So many cars and vehicles were seen queuing up in the filling stations; motorcycles were not excluded. There was transportation problem because of high cost of transportation fare. There was transportation problem because of high cost of transportation fare. There were even vehicle shortages, as some drivers could not afford to buy at the high price. On the road, there were so many pedestrians as both commercial and private transporters could not be found and if by chance anyone comes around it will be both survival of the fittest and the richest as people will pressurize themselves just to enter. Not just entering but can one afford to pay. Then, the driver will apply one of the laws of demand and supply which says:
“If supply decrease with the demand, constant price will increase while those who could not would disappointedly get down.
Workers were not unaffected as some get to officer one hour or more lately.
Traders were not left out, even farmers, as their goods and products could not be easily conveyed.
There were traffic congestions due to long queue on the road as drivers could not drive with ease. A litre of fuel was being sold for N75 to N85 or even N100 in a country where crude oil is the major source of revenue.
Efforts have been made many years ago how to put a stop on fuel crisis that has been hovering in this nation as a result of high price in fuel and general shortage. All these efforts have been proved futile, as the nation has continuously been experiencing fuel problem. These are general economic set back – high transportation cost, increase in cost of production and high cost in the sale of home made goods.
Why is Nigeria so richly blessed with crude oil suffering from fuel crisis?
Why is the fuel crisis so severe to the extent that it even affects economic activities of the nation?
What are the causes of this fuel crisis?
Is the fuel crisis as a result of poor management and maintenance of the refinery; or is it as a result of inadequate supply or distribution of the products?
Why the fuel being use in this country should be imported despite the war against importation? Why is fuel price so high that only few Nigerians can afford to buy, what are the causes of fuel shortage?
Today, there is general high cost of goods and services. Agricultural products (food items) are expensive as the crisis is even affecting their total cost. What shall we do to curb the instability as a result of fuel crisis?
As a result of these problems beating our nation, the study is designed to measure and clarify the following:
The following hypotheses form the framework for carrying out the study.
HI: Fuel crisis brings about general inflation in the country.
H0: Fuel crisis does not bring about general inflation in the country.
HI: Fuel scarcity and price increase cause fuel crisis
HO: Fuel scarcity and price; increase does not cause, fuel crisis.
To solve research problem, the researcher has asked the following research questions.
The study is very timely especially this time the country is handling over from Civilian rule the findings will be of great important and will serve as a guide to the current and would be management of the oil sector. It will help in curbing inflation and devaluation of our currency as there will be increase in production as there will be massive supply of fuel which will curb delays or lateness to work as well as over spending in fuel purchases, thereby using the money in other items of production.
The application of the findings could be useful at the practical level as it will go a long way to bring back the price of oil in this country to stability increasing our foreign earnings and enhancing oil trade with other countries and general economic growth and development in the country.
This research is concerned with fuel in N.N.P.C Enugu and its effect to the various sectors of our economy as a whole. The focus is not suggestive of a disintegration policy in the management policy of the
OPEC: Organization of Petroleum Exporting Companies. This is n organization of countries that produce oil in commercial quantities.
OIL GLUT: This is a period of oil boom, great discovery and achievement in oil.
COMMERCIAL QUANTITY: The petroleum Act 1969 defines it as daily production of 10,000 barrels of crude oil.
N.N.P.C: The Nigeria National Petroleum Corporation. It is the only indigenous oil company in Nigeria.
COG: Anything that prevent, obstruct or block an easy movement of anything.
VANDALIZATION: This is an inflicting damage on properties. It is an illegal tampering of properties for selfish purposes.
PPPRA: Petroleum Products Pricing Regulatory Agency that determine the pricing policy of products.
PUMP PRICE: This is the amount per litre of the petroleum products sold to consumers in filling stations.
DEPOT: This is a place where petroleum products are deposited from where they are distributed to the various petrol filling stations for sale to the consumers.
REFINING: This is a process of distilling crude oil into light or heavy fractions or cracking heavy products into lighter ones, thereby converting them into usable products or feedstock.
SMUGGLING: An act of illegal importation or exportation without paying duty.
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COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
CHAPTER ONE
- INTRODUCTION 1
1.1 BACKGROUND OF THE STUDY 3
- STATEMENT OF PROBLEM 5
- OBJECTIVE OF STUDY 7
- STATEMENT OF HYPOTHESIS 7
- RESEARCH QUESTION 8
- SIGNIFICANT OF THE STUDY 8
- SCOPE OF THE STUDY 9
- DEFINITION OF TERMS
CHAPTER TWO
- LITERATURE REVIEW 12
2.1 THE DISCOVERY OF BLACK GOLD 12
- OIL GLUT AND SLOW DOWN IN ECONOMY 15
- INADEQUATE TURN GROUND MAINTENANCE 19
- MASSIVE FRAUD IN OIL INDUSTRY 22
- SCRAMBLING AND SMUGGLERS ACTS 25
- FUEL SCARCITY 26
- PRICE EFFECT 31
- VANDALIZATION OF OIL PIPELINE 39
- SUMMARY OF THE LITERATURE REVIEW 42
CHAPTER THREE
- RESEARCH METHODOLOGY 46
3.1 RESEARCH DESIGN 46
- AREA OF THE STUDY 47
- SAMPLING PROCEDURE 48
- POPULATION OF THE STUDY 48
- INSTRUMENT OF DATA COLLECTION 49
- VALIDITY AND RELIABILITY OF THE
INSTRUMENT 49
- METHOD OF ADMINISTRATION OF
INSTRUMENT 47
- METHOD OF DATA ANALYSIS 50
CHAPTER FOUR
- DATA PRESENTATION 53
4.1 TESTING OF HYPOTHESIS 53
- ANALYSIS AND INTERPRETATION OF
RESPONSES 57
CHAPTER FIVE
- DISCUSSION OF IMPLICATIONS 71
5.1 DISCUSSION OF RESULT 72
- RECOMMENDATION 73
- CONCLUSION 78
REFERENCES 79
APPENDICES. 81
ABSTRACT
The content of this work is a kind of revelation to the readers on why the very gift of nature has showered on us, has been mismanaged thereby throwing this nation into a deep pit that will not be easy to come out hence the title “Fuel Crisis; a Cog in the Wheel of Economic Progress of Nigeria”. Therefore the need arises to find out the causes of this problem and the necessary solutions.
This piece goes into detail on the historical development of oil and how it boosts our economy in relation to financial growth and otherwise.
Today, there are so many problems emanating as a result of the mismanagement of crude oil nature has given us. Unlike before there is now scarcity of fuel in the country which is hazardously affecting every other sectors of the economy thereby reducing national income and inflating cost of living.
Therefore the purpose of this study is to find out the solutions to various problems in our oil sector and how to revive it.
CHAPTER ONE
INTRODUCTION
Petroleum in Nigeria is the major contributor to the gross domestic product. Before the discovery and exploitation of oil in commercial quantity, Agricultural products were the main stay of the economy. This was abandoned as a result of the exploitation and disposal of crude oil. Billions of dollars from petrol have no doubt moved Nigeria into a major player in the international market. It was contributed that if Nigeria had effectively employed about half of its windfall and earnings from oil, its success would have been close to the economics of the “Asian Tigers”, the emergent developing countries of Asia.
Despite the mismanagement, the nation still massively depends on oil as a key foreign exchange earner. Presently between 75% and, 80% of the revenue of the foreign exchange earner. Presently between 75% and 80% of the revenue of the federal government are accrued from the oil sector.
The Nigerian economy was supplied with petroleum products through imports by multinationals like Shell, BP, and Shell among others, prior to the commissioning of the oil Port Harcourt refinery in 1966.
As the economy expanded in the seventies, the production from this 35,000 Barrel Distribution refinery became grossly inadequate to meet the demand. Serious nationwide shortages resulted. As a result of this, some of the major sectors of our economy were affected even up till today. Government, as a result appointed the Oputa Panel of inquiring in 1975 to examine the root cause of the shortage. Based on their findings, government through the N.N.P.C took over the importation of petroleum products into Nigeria and started the construction of refinery and storage facilities and pipelines to link these storage centers. This culminated in the construction and commissioning of Warri Refinery in 1978 and Kaduna refinery in 1980. Government’s pursuit of self sufficiency in refined petroleum products led to additional investment in the expansion of the oil Port Harcourt Refinery, pipelines and depots interline and so many other constructions being held. The decision by government to construct products distribution pipelines over a wide expanse of the territory of Nigeria brought the nation into the modern era in this vital sector of the energy industry. Despite all these efforts by the government to supply petroleum products both internally and externally, the nation is still being strike by fuel crisis.
- BACKGROUND OF THE STUDY
On 8th to 11th June 2000, about the whole sectors in the Federation went on strike as a result of fuel scarcity and its price increment. It was on the verge of the strike that the federal government was compelled to bring down the price of fuel to N22 per litre. It was later increased to N26 per litre, which was the current price until recently on early December 202 another fuel shortage were being smelt. On middle of February 203 another fuel crisis was seen striking this nation. This time around, the one more severe than what we had been experiencing before.
So many cars and vehicles were seen queuing up in the filling stations; motorcycles were not excluded. There was transportation problem because of high cost of transportation fare. There was transportation problem because of high cost of transportation fare. There were even vehicle shortages, as some drivers could not afford to buy at the high price. On the road, there were so many pedestrians as both commercial and private transporters could not be found and if by chance anyone comes around it will be both survival of the fittest and the richest as people will pressurize themselves just to enter. Not just entering but can one afford to pay. Then, the driver will apply one of the laws of demand and supply which says:
“If supply decrease with the demand, constant price will increase while those who could not would disappointedly get down.
Workers were not unaffected as some get to officer one hour or more lately.
Traders were not left out, even farmers, as their goods and products could not be easily conveyed.
There were traffic congestions due to long queue on the road as drivers could not drive with ease. A litre of fuel was being sold for N75 to N85 or even N100 in a country where crude oil is the major source of revenue.
- STATEMENT OF PROBLEM
Efforts have been made many years ago how to put a stop on fuel crisis that has been hovering in this nation as a result of high price in fuel and general shortage. All these efforts have been proved futile, as the nation has continuously been experiencing fuel problem. These are general economic set back – high transportation cost, increase in cost of production and high cost in the sale of home made goods.
Why is Nigeria so richly blessed with crude oil suffering from fuel crisis?
Why is the fuel crisis so severe to the extent that it even affects economic activities of the nation?
What are the causes of this fuel crisis?
Is the fuel crisis as a result of poor management and maintenance of the refinery; or is it as a result of inadequate supply or distribution of the products?
Why the fuel being use in this country should be imported despite the war against importation? Why is fuel price so high that only few Nigerians can afford to buy, what are the causes of fuel shortage?
Today, there is general high cost of goods and services. Agricultural products (food items) are expensive as the crisis is even affecting their total cost. What shall we do to curb the instability as a result of fuel crisis?
- OBJECTIVE OF THE STUDY
As a result of these problems beating our nation, the study is designed to measure and clarify the following:
- To know the causes of fuel shortage
- To know the causes of continuous increase in the price of fuel.
- To know the causes of importation of fuel (refined) for local consumption.
- To know the degree of efficiency N.N.P.C depot of fuel supply.
- To know the condition our refineries in relation to fuel shortage.
- To know the effect on the economic growth development and general standard of living in the country.
- To investigate, effective solutions and improvement in fuel supply in the country.
- STATEMENT OF HYPOTHESIS
The following hypotheses form the framework for carrying out the study.
HI: Fuel crisis brings about general inflation in the country.
H0: Fuel crisis does not bring about general inflation in the country.
HI: Fuel scarcity and price increase cause fuel crisis
HO: Fuel scarcity and price; increase does not cause, fuel crisis.
- RESEARCH QUESTION
To solve research problem, the researcher has asked the following research questions.
- What are the chief causes of fuel crisis?
- What are its effects on the nations economic growth and standard of living?
- What impact has it in relation to trade with other countries?
- What shall we do to increase fuel supply for both local consumption and exportation?
- SIGNIFICANT OF THE STUDY
The study is very timely especially this time the country is handling over from Civilian rule the findings will be of great important and will serve as a guide to the current and would be management of the oil sector. It will help in curbing inflation and devaluation of our currency as there will be increase in production as there will be massive supply of fuel which will curb delays or lateness to work as well as over spending in fuel purchases, thereby using the money in other items of production.
The application of the findings could be useful at the practical level as it will go a long way to bring back the price of oil in this country to stability increasing our foreign earnings and enhancing oil trade with other countries and general economic growth and development in the country.
- SCOPE OF THE STUDY
This research is concerned with fuel in N.N.P.C Enugu and its effect to the various sectors of our economy as a whole. The focus is not suggestive of a disintegration policy in the management policy of the
OPEC: Organization of Petroleum Exporting Companies. This is n organization of countries that produce oil in commercial quantities.
OIL GLUT: This is a period of oil boom, great discovery and achievement in oil.
COMMERCIAL QUANTITY: The petroleum Act 1969 defines it as daily production of 10,000 barrels of crude oil.
N.N.P.C: The Nigeria National Petroleum Corporation. It is the only indigenous oil company in Nigeria.
COG: Anything that prevent, obstruct or block an easy movement of anything.
VANDALIZATION: This is an inflicting damage on properties. It is an illegal tampering of properties for selfish purposes.
PPPRA: Petroleum Products Pricing Regulatory Agency that determine the pricing policy of products.
PUMP PRICE: This is the amount per litre of the petroleum products sold to consumers in filling stations.
DEPOT: This is a place where petroleum products are deposited from where they are distributed to the various petrol filling stations for sale to the consumers.
REFINING: This is a process of distilling crude oil into light or heavy fractions or cracking heavy products into lighter ones, thereby converting them into usable products or feedstock.
SMUGGLING: An act of illegal importation or exportation without paying duty.
Download our android mobile app for more materials
ORDER NOW
COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
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First Bank:
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Account Name: Chi E-Concept Int’l
Account Name: 3059320631
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
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