Key Features:
- No of Pages: 108
- No of Chapters: 05
Introduction:
Abstract
Almost every home and business is powered by generator fired by subsidized petrol. It is very obvious that subsidy removal will worsen the country’s situation and worsen inflation. It is in the light of the above removal on the effective marketing of petrol in Nigeria using Enugu as the case study. In the course of carrying this research, the research used primary and secondary data, the primary data deals with personal observations, interview etc while secondary data contained the use of textbook, internet, journals, magazines, etc. The population comprises marketer, consumers and distributor of petrol products. Which is made of 150 respondents. The sample size was determined using Taro Yaamni’s formular in which the hypothesis was tested using chi-square. It was concluded and recommended that fuel subsidy affect marketers and therefore private investors and entrepreneurs should be allowed full participation in the sector be allowed full participation in the sector, a situation that will lead to effectiveness in the distribution of the product.
Table of Content
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Significance of the Study
1.7 Scope of the study
1.8 Limitations of the Study
1.9 Definition of the Terms
CHAPTER TWO
LITERATURE REVIEW
2.1 Theory of Fuel Subsidy
2.2 Meaning of Subsidy
2.3 History of Fuel Subsidy Remove in Nigeria
2.4 The Roles or functions of Fuel Subsidy
2.5 Problems Association with of Fuel Subsidy Removal
2.6 Disclose Indent Among NNPC and Oil Marketers
2.7 Problems of Fuel Subsidy Removal Oil Marketers
CHAPTER THREE
RESEARCH DESIGN METHODOLOGY
3.1 Research Design
3.2 Are of the Study
3.3 Sources of data
3.4 Population of the Study
3.5 Sample Size Determination
3.6 Method of Data Collection
3.7 Reliability of the Instrument
3.8 Validity of the Instrument
CHAPTER FOUR
DATA PRESENTATION AND RESULTS
4.1 Data Analysis
4.2 Test of Hypothesis
CHAPTER FIVE
DISCUSSION OF RESULTS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of Findings
5.2 Conclusions
5.3 Recommendation
Bibliography
Appendix (The questionnaire)
Introduction
1.1 BACKGROUND OF THE STUDY
The issue of subsidizing and subsidy removal has been on the public domain since the transition from military rule to civilian rule in 1999. But the one that seems to have generated a lot of controversy is the issue of subsidy removal. And one major sector that has always affected is the oil or fuel subsidy. Two reasons can be adduced for this. One is the fact that oil remains the backbone of the Nigerian economy. And secondly, large chunk of government money go into oil subsidizing.
However, the removal of fuel subsidy over the years has been a gradual one, until recently early this January, 2012 when the government embarked on a drastic removal of the subsidy – though it was claimed to be a partial one (N85 to N120 and later reduced to N97). Whether the removal was partial or not, the issue raised was that the timing was wrong i.e. January, there was no ‘safety net’ put in place before its removal, those responsible for the diversion of the subsidy money should be brought to book instead of the removal amongst other issues. Again, the government that the removal was to allow the free hands of demand and supply to determine market prices so as to restore efficiency in the production, refining, distribution and ultimately force price of fuel down just like in telecommunication industry.
On the other hand, as the debate continued little attention was paid to the impact of such removal would have on the balance of payment of Nigeria which is the long run effect.
In a government circular of 13th November, 1980 from petroleum inspectorate Lagos to the Chief Engineer NNPC Port-Harcourt. It was started you may recall that government indicated about two (2) years ago to encourage Nigerians to participate in the distribution and marketing of petroleum products.
To this effect about 260 two hundred and sixty Nigerians have been given approval by the commercial division of NNPC as independent marketers. He then confirmed on investigation that the total number of the people given approval (provision) to operate as independent marketers in Nigerian is (491).
1.2 STATEMENT OF PROBLEM
The Nigerian economy over the years has been programmed to revolve around the supply of „cheap‟ petroleum product. An average household in Nigeria depends on subsidized by-products of crude oil such as petrol and kerosene for domestic and commercial use. This dependence is not helped either as public electricity supply from PHCN is epileptic. Almost every home and business is powered by generators fired by subsidized petrol. The few small scale businesses such as Hotels, Barbers, Welders, Hair dressers, Pepper sellers, Cool-room owners, Food sellers, Private and Government hospitals etc all rely on subsidized fuel. Transportation costs for instance have gone up and this will result in spiral effect on other sectors- all other businesses in fact revolve around the transport sector. It is very obvious that subsidy removal will worsen the country’s already inflation rate. In fact it w ill result in hyper inflation as prices of goods and services are bound to skyrocket beyond the reach of many. Even the Naira will not be spared, because it will further depreciate in value as much money will be chasing fewer goods. Creditors also lose during inflation because if they lend out money when there is no inflation and the prices are moderate or stable, the moment inflation sets in the value of that money to the creditor is lost.
For oil marketers, who are paid the difference between international product prices and the subsidized price of domestic fuel (N 65/litre), there is an incentive to import even more product when prices are high. In recent years, balance-of-payments and fiscal strains have been evident
Also on the parts of marketers marketing of petroleum products in the country appeared not to have profound its function very satisfactorily. Too much shortages of profit by the independent marketers and like in the oil prices as was stated by the federal government before now. Inappropriate refining and distribution costs of the petroleum products and reduction in the crude oil allocation.
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