- The Complete Research Material is averagely 64 pages long and it is in Ms Word Format, it has 1-5 Chapters.
- Major Attributes are Abstract, All Chapters, Figures, Appendix, References.
- Study Level: BTech, BSc, BEng, BA, HND, ND or NCE.
- Full Access Fee: ₦6,000
Get the complete project »
CHAPTER ONE
INTRODUCTION
1.1BACKGROUND OF STUDY
Subsidyis any measure that keeps the prices consumers pay for a good or produce
below market level for consumer or for producers. Subsidies take different
forms,these include grants, tax reductions and exemptions or price controls.
Others affect prices or cost indirectly such as regulations that skew the
market price in favour of a particular fuel, government. Sponsored technology,
or research and development. (R & O) Alozie (2009).
According to Eyiuche (2012) the federal government operated fuel subsidy with
the aim of making petroleum products available to cushion the effect of actual
market prices of the product on the general populace. The federal government
during the military era was of the opinion that the cost of production,
transportation of fuel will be so much a heavy burden for the poor masses of
Nigerians to bear alone and therefore decided to pay part of the total amount
of fuel cost for every Nigerian in order to make the product available and
affordable. This is actually what is referred to as fuel subsidy that is the
government paying part of the total amount of fuel cost. His intention of
cushioning the effect of actual market price of fuel product actually worked
for a period of time, say from 1973-1983. On March 31st 1986. Gen. Ibrahim
Babangida increased the pump price of petrol form 20k to #39.5k. This was about
97.5% increment.
Sources have it that issues worsened with the advent to democracy. On June 1st,
2000 Chief OlusegunObasanjo increased the pump price of petrol from #20 to #30
(50% increment). Gradually, the aim of the military government that introduced
fuel subsidy was subdued and defeated.
The benefits of fuel subsidy to the average Nigerian was short lived. The
federal government claim to have spent over #1.4 trillion on fuel subsidy in
the past five years. It also claimed to be paying heavily to subsidize kerosene
which is imported into the country through the Nigerian National Petroleum
corporation (NNPC), the fuel subsidy policy has also bred several unintended
consequences and practices such as smuggling of petroleum products out of the
country, the federal government also claimed that the fuel subsidy policy has
made them unable to tackle problems of our collective infrastructure which are
the roads, power, agriculture, fixing the refineries etc.Omoniji (2012).
Given the antecedents that most Nigerians have not benefited from fuel subsidy,
several economists view subsidies as highly corrupt, wasteful and bled money
from the treasury into the private pockets of rich fuel importers. As a result
of this obvious reality, the federal government on January 1st 2012
dramatically announced the end of fuel subsidy. With the intention of using the
money accrued from fuel subsidy to develop other sectors of the economy, and
also to ensure sustainable develop and wealth generation for the nation.
Onanuga (2012).
The removal of fuel subsidy by the Nigerian government raises lot of dust. It can
be said to be the most talked about issue since the inception of democracy
inNigeria. It can also be said that the subsidy will go down in history as one
of the most unpopular policies ever imposed on Nigerians. The protest and war
of words that the policy generated pointed out glaringly the mistrust
Nigerians, most especially the youths have for the government due to years upon
years of failed promises and unaccomplished government polices/programmes.
Nigerians got a shocking New Year gift from the federal government on January
1st 2012. They found long queues at the filling stations where petrol was sold
above #65 per litre. Fuel subsidy removal which the federal government under
the leadership of President GoodluckEbele Jonathan has canvassed and lobbied
for since he was sworn in last May 29, 2011 appeared to have finally got to the
blast off stage. It was on Monday, December 12, 2011, that the National
Economic Council headed by the Vice President NnmadiSambo decided that
government should finally remove the subsidy come January 2012. The body
consists of the vice president, governors, strategic ministers and central bank
of Nigeria (CBN) claimed that subsidy removal had become inevitable to avert
the collapse of Nigerian economy. Daily sun (2012:18).
The withdrawal of fuel subsidy by the federal government generated heated
debates by Nigerian Labour Congress (NLC) owing to its socio-economic
implications on the nation’s economy. The prices of goods and services rose,
the cost of transportation also rose drastically even commercial motorcycle instantly
adjusted their fares as soon as the subsidy removal was announced. Many artisan
like welders, aluminum window filters, tailors, who cannot afford power generators
are today out of work, many Nigerian youths have taken to riding commercial
motorcycle and tricycle while others went into street hawking just to keep body
and soul together. The NLC and government workers went on strike which resulted
the nation (Nigeria) to loose chose to $617 million daily, translating into
about #100 billion, this removal also brought about mass poverty to Nigerians as
the prices of goods and services increased while their income still remain
constant, and also violent demonstration which distorted peace and tranquility
in the country. Following the pronouncement, motorist who were traveling back
to their various destinations after the New Year and Christmas celebrations
were hit by sudden likes on petrol prices. Prices rose dramatically ranging
between #140 and #150 per litre and at between #170 to #200 on the black market.
Omoniji (2012: 4).
In the words of Kauffmann (2010: 128) subsidy removal as a programme enjoyed
relative success with limited social stress, in others cases the exercise was
deemed a failure. Elimination of subsidies on essential commodities like fuel
has been known to precipitate social dislocation and in the extreme led to
street riots and civil strike. Fuel subsidy removal programmes are sensitive to
economy structure, level of development of the country, political system and
the state of the economy. There is evidence that the more successful countries
have taken a phase or gradual approach, have engage in conscientious research
prior to implementation and followed a rigorous approach to policy making. The
effective communication and fair level of trust between citizens and government
may be the other critical success factors in such an exercise. We examine Nigeria’s
proposal for subsidy removal against this back drop.
The stake holders, unions and people made snide comments about the removal of
fuel subsidy, they say that the policy is unconstitutional because the policy
does not favour the poor masses, and they did not seek the consent of the
people and their full support before implementing such policy. They also stated
their view saying that subsidy removal is not the only means that the government
can accrue or save money to develop other sectors of the economy.
1.2 STATEMENT OF THE PROBLEM
Nigerians did not embrace the new policy of fuel subsidy removal by the
federal government. On 1st of January 2012 when PresidentEbeleGoodluck Jonathan
announced the fuel subsidy removal. Nigerians reacted negatively towards such
policy. The Nigerian labour congress and government workers went on strike
which made the nation (Nigeria) to lose a huge amount of money close to #100
billion naira. Emeh (2012).
The removal of fuel subsidy by the federal government also generated inflation
in the country which bought about a high cost of fuel and other items in the
market, not only did it bring about inflation, it was also accompanied with
mass poverty because the price of goods and services increased while the income
of people still remained constant. Nigerians were also traumatized by the new
of the new policy and it also brought about violent demonstrations which distorted
thepeace and tranquility of the country. It was these problems that prompted
the researcher to carry a thorough research on the impact of fuel subsidy
removal on the Nigerian economy.
1.3 OBJECTIVES OF THE STUDY
The objective of this study is to look into fuel subsidy removal and the Nigerian economy, to achieve this, the researcher wishes
i) To assess the rational for the removal of fuel subsidy by the federal government.
ii) To assess what petrol subsidy removal portend for the Nigerian economy.
iii) To assess the failure or success of the oil subsidy regime.
1.4
RESEARCH QUESTIONS
The
following shall constitute a question for this research
1. Was the fuel subsidy regime useful to a majority of Nigerians?
2. Was the federal government reasonable in removing the subsidy on fuel?
3. Is there
a significant relationship between the subsidy and the Nigerian economy?
1.5 SIGNIFICANCE OF THE STUDY
The following are the significance of this study:
1. The findings from this study will educate the Nigerian general public on the effect of fuel subsidy on the Nigerian economy. It will also enlighten the public on the pros and cons of fuel subsidy.
2. This research will be a contribution to the body of literature in the area of the effect of personality trait on student’s academic performance, thereby constituting the empirical literature for future research in the subject area.
3. The findings of this study will further serve as a research material to scholars who intent to embark on the subject of fuel subsidy in future.
1.6 SCOPE ANDLIMITATION OF THE STUDY
Because
of the vast nature of Nigeria, the researcher limited its study to Abakaliki
local government area and its environs.
In this research work like every other purposeful act, it was met with many
obstacles in the gathering of information the major problem encountered by the
researcher is the limited time given within which to gather and analyse data
because this topic is based on current issues in our society. Also the
researcher was faced with the problem of finance as well as the negative
attitude and non-cooperation of the respondents to give information to the
researcher. Also, there is the problem of transportation from one place to
another. Other problems include physical problems such as energy used in
carrying out this work and it was carried out when normal school activities
were on, the researcher devoted more time in order to meet up with the time
limit for the submission of this work. Another problem the researcher
encountered was lack of textbooks because this research work is a current issue
in Nigeria, people have not written any text books on it, the researcher had to
reach on journal, magazines, newspaper and the internet.
1.7 DEFINITION OF TERMS
Fuel: A fuel is any material that can be made to react with other substances so that it releases chemical or nuclear energy as heat or to be used for work. The concept was originally applied solely to those materials capable of releasing chemical energy but has since also been applied to other sources of heat energy such as nuclear energy (via nuclear fission and nuclear fusion).
Fuel subsidy: Fuel subsidy is the money paid by the Federal Government of Nigeria to reduce the cost of refining petroleum products, especially fuel. The Federal Government has for some time now been selling the idea of fuel subsidy removal to Nigerians; making them to understand how immensely beneficial the removal be to all.
Economy: An economy (from Greek οίκος – "household" and νέμoμαι – "manage") is an area of the production, distribution, or trade, and consumption of goods and services by different agents. Understood in its broadest sense, 'The economy is defined as a social domain that emphasizes the practices, discourses, and material expressions associated with the production, use, and management of resources'. Economic agents can be individuals, businesses, organizations, or governments. Economic transactions occur when two parties agree to the value or price of the transacted good or service, commonly expressed in a certain currency. Monetary transactions only account for a small part of the economic domain.
Perception: Perception, for our purposes, means the ways individuals view issues, personalities, organizations, governments, etc. Although it is not usually obvious initially, perception is a powerful force in relating and dealing with others.
Credibility: credibility is a major issue in communication as it is hinged on the idea of believability. Over time, a communication source through consistent provision of believable and honest information, establishes a podium for his information to be readily acceptable.
Public Opinion: According to Best (1973) as cited by Blake Haroldson (1975 p.99) public opinion is more commonly regarded as “a mass phenomenon, as an aggregation and expression of individual opinions about a public concern, expressed in such a manner as to be perceived by public decision makers”.
1.8 ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows. Chapter one is concern with the introduction, which consist of the (background of the study), statement of the problem, objectives of the study, research questions, research hypotheses, significance of the study, scope of the study etc. Chapter two being the review of the related literature presents the theoretical framework, conceptual framework and other areas concerning the subject matter. Chapter three is a research methodology covers deals on the research design and methods adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study.
You either get what you want or your money back. T&C Apply
You can find more project topics easily, just search
-
SIMILAR ECONOMICS FINAL YEAR PROJECT RESEARCH TOPICS
-
1. Investing in High Technologies for a Sustainable and Efficient Growth in the Sub-Saharan African Countries
» AbstractThis paper discusses the benefits for the Sub Saharan African countries to invest in high technologies as a more efficient long term growth st...Continue Reading »Item Type & Format: Project Material - Ms Word | 45 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
2. CORRUPTION CHALLENGES AND ECONOMIC GROWTH IN NIGERIA
» ABSTRACT This project work examines the issue of corruption and performance of public corporations in Nigeria, with Power Holding Company of Nigeria (...Continue Reading »Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
3. DETERMINANTS OF STOCK PRICE FLUCTUATION IN NIGERIAN QUOTED FIRMS
» 1.0 INTRODUCTION 1.1 BACKGROUND OF THE STUDY In recent years, the Nigerian economy has been subjected to a series of political and social reforms, pol...Continue Reading »Item Type & Format: Project Material - Ms Word | 59 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
4. IMPACT OF MONETARY POLICY ON PRICE STABILITY IN NIGERIA (1981 - 2013)
» ABSTRACT This study examined impact of monetary policy on price stability in Nigeria within the sample period of 1981 2013. Monetary policy refers to ...Continue Reading »Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
5. THE IMPACT OF INFLATION ON COST OF LIVING IN NIGERIA (1982-2012)
» CHAPTER ONE INTRODUCTION Inflation is an inevitable property of any economy in the world. It influences every country, negatively as well as positivel...Continue Reading »Item Type & Format: Project Material - Ms Word | 71 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
6. THE DIFFICULTIES AND PROSPECT OF TAX ADMINISTRATION IN NIGERIA
» Abstract Reports have shown that despite the numerous efforts of government and its relevant agencies in the administration of tax in Nigeria, there a...Continue Reading »Item Type & Format: Project Material - Ms Word | 55 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
7. THE EFFECT OF RURAL POVERTY ON ENVIRONMENT DEGRADATION
» CHAPTER ONE INTRODUCTION 1.1 Background to the Study The poor have traditionally taken the brunt of the blame for causing society’s many problem...Continue Reading »Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
8. AN ASSESSMENT OF TOURIST ATTRACTION DEVELOPMENT AND CONSUMER BEHAVIOUR IN AKWA AKWA IBOM STATE
» CHAPTER ONE 1.0 INTRODUCTION 1.1 BACKGROUND OF STUDY In Nigeria today and the world at large, the rate of growth of tourism is proportional to the lev...Continue Reading »Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
9. THE IMPACT OF STOCK MARKET PERFORMANCE ON THE GROWTH OF NIGERIAN ECONOMY
» CHAPTER ONE 1.1 BACKGROUND TO THE STUDY Primarily, a stock market is the place where companies can raise money to make their businesses bigger and bet...Continue Reading »Item Type & Format: Project Material - Ms Word | 54 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
10. IMPACT OF FINANCIAL INTERMEDIATION BY DEPOSIT MONEY BANKS ON THE REAL SECTOR OF THE NIGERIAN ECONOMY (1980 – 2012)
» 1.1 Background to the Study The function of deposit money banks is the mobilization of savings for investment. The importance of banks in influencing ...Continue Reading »Item Type & Format: Project Material - Ms Word | 48 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT