THE EFFECTS OF FUEL CRISIS IN NIGERIA ECONOMY
ABSTRACT
Crude oil is the world’s most important mineral. It is the heart of modern technology. Almost every modern technological advancement depends on the by-products of crude oil. And fuel is one of such by product without fuel modern life vis-a vis Nigeria economy with all its convenience would be impossible. Just thinking of Nigeria without petroleum products gives us goods pimples the size of peanut. No movements in socio-economy almost nothing. The economy will be in shambles, hence there will be chaos and anarchy in every nook and cranny In the Nigeria economy crude oil holds the key to her modern life. Nigeria’s economy fortunes and misfortunes are in the hands of crude oil. The country earns more than 90 percent at its foreign exchange (forex) revenue form crude oil (fuel) This research is aimed the finding out the causes effect and solution or remedy to fuel scarcity in our country’s economy Nigeria if properly understood and implemented. The work is divided into three parts the first part deal with the introduction of the subject matter, the second part deals with the origin of the study whole the third part deal with data presentation analysis recommendation and conclusion.
CHAPTER ONE
INTRODUCITON
1.1 BACKGROUND TO 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 in the faster part of cocoa in the western part of the country. The discovery of oil the country in commercial quantities brought about radical changes in the economy of the nation. All other sectors seemed to have gone into oblivion 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
Expectedly the narrowing of the economy to a monolithic export commodity has its attendant drawback as oil by virtue of its importance to the economic of nations has inevitably become a subject of political manipulation. But the greater danger for Nigeria is that as the sole commodity of the nation and he inherent total dependency on oil has made the country’s economy revolve around it. Virtually all essential service rendered in the country revolve it. Almost all other sectors of he economy depend on oil transportation electricity factories etc all depends on oil Any contemplation therefore of a possible scarcity r unavailability of the product will no doubt spell doom for the economy of the country. This is therefore going to be the subject of this research.
FULLSCARCITY; that has plagued the nation recently appeared to be worse at the beginning of this years it caused a lot pain anguish and dislocation of economic and sundry activities. There was hardly any individual industries institutions and organization in Nigeria today that was not severely affected. It id widely believed in government circles what perennial fuel crisis is largely caused bottlenecks in the distribution system. But a survey show that the bottlenecks and other associated problem are caused by conflicting activities of multifarious government agencies.
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