PROBLEMS OF INADEQUATE FUEL DISTRIBUTION IN NIGERIA (A CASE STUDY OF ENUGU STATE)

PROBLEMS OF INADEQUATE FUEL DISTRIBUTION IN NIGERIA (A CASE STUDY OF ENUGU STATE)

ABSTRACT

This report on the problems of inadequate fuel Distribution in Nigeria is a critical analysis of the causes of incessant fuel scarcity in Nigeria in recent times.

The report exposes the negative parts being played and is still playing by some Government Officials, special Task force on Petroleum products Distribution and Black marketers.   The recommendations go a long way to redirect the government or anybody involved in the distribution of fuel in Nigeria.

CHAPTER ONE

INTRODUCTION

Crude oil, which when processed fuel is produced. It is one of the natural resources Nigeria is endowed with; Infact, Nigeria is the World’s Sixth Largest producer of crude oil. Before 1990, fuel distribution and management has been smooth and effective before Nigeria started witnessing inadequate fuel distribution.

In 1996, Crude oil allocation for Local consumption was reduced from 3000,000 to 250,000 barrels per day. The Nigeria National Petroleum Corporation had been supping crude oil for finished products, which was not in the interest of Nigerians.

By this arrangement between October, 1994 and August, 1996, according to the former Finance minister Mr. Anthony Ani, cost between eight and ten million barrels of crude oil

1.1       GENERAL BACKGROUND TO THE PROBLEM OF INADEQUATE FUEL DISTRIBUTION:

The problem of inadequate distribution of fuel in Nigeria and Enugu State in particular can be attributed to so  many reasons ranging from corruption by government officials, bunkering, smuggling bureaucracy and insensitivity of government to the plight of the masses.

The multi-facet problems of fuel shortage in Enugu State became acute daring the petroleum and National Gas senior Staff of Nigeria and National Union of Petroleum and National Union of petroleum and Gas workers. There were cases of unrest due to the fuel crises. The fuel shortage in Enugu then was so serious that the government had to announce from time to time on media houses each petrol station that received allocation from Nigeria National Corporation Depot in an effort to avoid diversion. In the wake of the crises, motorist passed nights queering for the purchase of fuel which are hard to come by.

1.2    PROBLEMS ASSOCIATED WITH INADEQUATE FUEL DISTRIBUTION ON THE SOCIETY.

The problem associated with inadequate fuel distribution are; during fuel scarcity, a lot of hardship is meted to the generality of Nigerians both in the rural and urban areas. People do a long distance

Trekking before getting to their destination which motor vehicles could have done.

A lot of foodstuffs are wasted due to lack of transportation to take them to markets. Motorist as well as cyclists are put of the roads when they can not got fuel and subsequently, loose their jobs. Sometimes, they can run out of patience and decide to take laws into their hands and cause more economic havoc. For instance, recently, members of the Sokoto State chapter of the Nigeria Motorcycle Transports Association went on strike.

The action which almost paralysed the economy of the State was to protest the non- availability of petrol for members of the association to carry out their business.

Inadequate distribution of fuel gives room for hoarding during fuel scarcity; another adverse consequence of illegal sales of fuel is adulteration. Black market fuel sellers have reputation for adulterine their illegal wares with kerosene and Diesel and sell to unsuspecting motorists. The adulterated fuel ends up damaging vehicle engines, even causes accidents and possibly loss of lives.

Another adverse effect of hoarding and smuggling of petroleum products is that many people have become rich through the illicit trade. These people do not contribute anything to the economy and yet live- like kings in the society. Government also loose huge revenue through the activities of these people.

PROBLEMS OF INADEQUATE FUEL DISTRIBUTION IN NIGERIA (A CASE STUDY OF ENUGU STATE)