PREFACE
The purpose of the research work is
to identify the problems confronting the distribution of petroleum product in Enugu State
and its possible solution for effective distribution.
PROCEDURES –
In order to tackle the task involved with the research of the magnitude, the
work has been arranged in chapters, each naturally linking the other.
CHAPTER ONE –
Introduces the topics and goes to state the statement of the problems.
Objectives of the study and significant of the study.
CHAPTER TWO –
Review essential literacy words, of origin of Petroleum product.
CHAPTER THREE
– outline the research design used in gathering data necessary for the work.
Finally rolls out necessary recommendations for effective and efficient
distribution of petroleum product.
The entire work is presented in a
coherent, easy to understand manner that makes for an interesting reading.
TABLE OF CONTENT
Title page i
Approval page ii
Dedication iii
Acknowledgement iv
Preface v
Table of contents vii
CHAPTER ONE
Introduction 1
1.1
Background
of the study 1
1.2
Statement
of problems 4
1.3
Purpose
of the study 6
1.4
Significance
of the study 7
1.5
Research
Question 8
1.6
Scope
and Limitations of the study 9
CHAPTER TWO
Literature Review 11
Economic benefits of petroleum
product 11
CHAPTER THREE
Research finding and discussion of
the findings related to
problems of distributing petroleum
products in Enugu
state 21
3.1
Discussion
of findings 21
3.2
Summary
of findings 27
3.3
Recommendations 28
3.4
Conclusion 29
References 30
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
It is evident that whenever more than
person is involved in an activity or organization, there is bound to be
friction. Since it has been established that occurrence of most rational
activities involve people there is therefore need fro guidance in order to
achieve the aims, goals and objectives.
Fuel shortage and their attendant
distribution problems started in the later part of 1993 and were attributed to
labour and political crisis of that year. Black market for petrol has come the
order of the day. The market which thieves in the suburbs and the surrounding
states does not require filling stations or fuel pumps. Petrol was sold in any
type of container and as a free market prices. Against this background, the businessmen seeing that
it is a brisk way of sharing money, no longer had to wait for the NNPC Depot to
negotiate for supply of fuel and to bribe way through for supply. This is why
many Nigerian experts in petroleum scarcity is the result of the crushing
problem at the NNPC. The NNPC, inside sources confirm is not disposed towards
refurbishing the refineries.
Another reason why local demand for
petrol is easily dashed is the high incidence of smuggling of the products
across the borders. Most NNPC officials agreed that Nigeria looses up to 600,000 liters
of petrol through smuggling.
The curb smuggling, the pipeline and
product marketing company, PPMC a subsidiary of the NNPC declare the volume of
allocations to every state ahead of supply. The measure was to enable the
government to monitor distribution of petrol in their states. At the end of the
day, the governors administrator and the marketers will account for any
diversion of petrol in their states. Indeed NNPC;s investigations has revealed
that up to 30 percent of all fuel meant for local consumption is lost through
smuggling. Today various state government including Enugu State have set up
task forces at stem this destructive practice but
even the soldier do not seem able to arrest the situation since whole tanker
loads of fuel still disappear. As government seeks to correct the smuggling of
petrol, the smugglers are ingenious in discovering new ways of circumventing
the law. For instance, petrol is sold to these smugglers at odd times and the
jerry cans of petrol are stacked in bags and covered with cloths or garri to evade
task force officials. The story of
problem of petroleum distribution cannot be complete mentioning the industrial
action (strike) embarked by National Union of Petroleum and National Gas
Workers, NUPENG and the Petroleum and Natural Gas Senior Staff Association of
Nigerian, PENGASSON while led to their proscriptions. This strike action by
NUPENG and PENGASSON served as a stepping stone for illegal dealer to rise to
the top and scarcity of petroleum products nationwide. The network of the trade
is so well coordinated and vast failed.
It was generally alleged that
military helped many tankers loaded with the commodity often tries to be
divested to other places other than the official destinations. The military
personnel exhibit corrupt kills selling to their officers and collecting money
from people. The military personnels involvement is also established, down the
trade chain as most of them get their consignment in drums regularly from
filling stations who sell at night father than during the day. The activities
of black marketers have remotely affected the suppliers of fuel to many filling
station in Enugu
and across the country, long gueues are common right with motorists leaving
their vehicles on queue for days an end. In view of these chronic problems and
solution to that, out interest to the study in emanates.
1.2 STATEMENT OF THE PROBLEM
1. Diversion of petroleum product by the
tankers drivers and smugglers.
2. The
illegal fuel peddlers and fuel hoarders
3. The industrial action embarked by
National union of petroleum and Natural Gas Workers peak of the business.
An army sergeant of Enugu was overheard saying that he makes an
average profit of N3000 daily from illegal sales of petrol. He gets fuel from
filling stations and other privileged sources of official rates an hands over
to his boys to sell at exorbitant black market price.
The army sergeant wished that this
crisis persists because his family has been able in recent times occasioned by
this windfall to meet most of its long outstanding obligations. He thanks his
God for his mercies because for over his 25 years in service, he had nothing to
show for them. Now, thanks to fuel crisis, he has bought household items
including coloured television, video recorder, fan, refrigerator etc in few
weeks. This depicts that the trafficking of petroleum products has assumed the
primary position of the most lucrative business in Nigerian where instant
profits abound, many leave their means of livelihood to joint this illicit
trade. Petrol has become liquid gold that yield dividend in leaps similar to
drug trafficking. Most parts of Enugu have been dotted
with spots (black-markets) where the business is daily transacted in broad
daylight without fear of arrest by security operatives. The black markets have
seized the opportunity offered by the industrial actions embarked upon then by
the National Union of petroleum and Natural Gas Workers and the petroleum and
Natural Gas Senior Staff Association of Nigeria (PENGASSON) which occasioned.
1.3 PURPOSE OF THE STUDY
The government provides certain
indispensable public services without which community life would be unthinkable
and which by their nature cannot be appropriately left to private enterprises
and petrol is one of such services. In view of this, this study focuses mainly
on the following objective in an attempt to arrives at an optional distribution
of petroleum in Enugu
State.
i.
To
appraise petroleum distribution in Enugu
State
ii.
To
find out whether the military then perpetuate the problems of petroleum
distribution in the state.
iii.
To
find out other problems which militate, against optional distribution of
petroleum in Enugu
State.
iv.
To
find out a suitable solution to the petroleum distribution in Enugu State.
1.4 SIGNIFICANCE OF THE STUDY
The study is very timely, especially
today that all hands are on the desk to enhance the development and growth of
Nigerians economy. This study will be of immense benefit to public organization
and the organized private sector to determine the extent of their budget
effectiveness.
In addition, the study will determine
the factors or problems limiting budget effectiveness of these organization. It
is expected that the finds will help to bridge any gap that may exist and to
make these (NUPENG) and the petroleum and Natural Gas Senior Staff Association
of Nigeria.
v.
Sub-let
of contracts by contractors to in competent unqualified engineers for turn
around maintenance (TAM).
vi.
Poor
management by the (PPMC) pipeline and product marketing company head Alhaji
Hanna Abubakar.
vii.
Damaged
pipeline and short down of Warri and Kaduna
refinery and epileptic performance of the plant in Port-Harcourt.
1.5 RESEARCH QUESTIONS
To determine the problem of petroleum distribution in Enugu State
and solutions, this research is set out to test among others the following:
i.
How
do petroleum dealers and pump attendants in Enugu State
feel about the problems of petroleum distribution?
ii.
What
are the functions of the Governor in distribution of petroleum in Enugu State?
iii.
Why are petroleum dealers and pump attendants
happy over the scarcity of petroleum in the state?
iv.
What
is the effect of petrol trafficking (black market) by illegal dealer in the
distribution of petroleum in the state.
v.
What
are the solution embarked by the government to solve the problem of petroleum
distribution in the state?
Enterprises effective or more effective in budget
planning and execution. It is necessary to investigate the budget planning and
execution of public enterprises, and to evaluate their effectiveness especially
today that we walk of privatization and commercialization.
Public enterprises must
achieve their cooperative objective, it is obvious that the federal, state and
local government would be wasting huge some of money being pumped into these
enterprises. In addition, the country’s aspiration to attain high economic
growth and development will not be realized.
Through this
investigation, therefore, both public and private enterprises will understand
their shortcomings or weak points and will subsequently adopt measures aimed at
enhancing their budget effectiveness.
The public enterprises
will equally borrow the story points of the private organizations to make for
more effective budget planning and execution.
1.6 SCOPE AND LIMITATIONS OF THE
STUDY
The
study is designed to cover the concept and structure of petroleum distribution
and to critically analyze the problems attended thereon. A research work of
this nature is one which is capable of obtaining an overall and thorough
coverage of the entire state.
This
is practically impossible as one is often constrained by a number of factors
including inadequate resources such as finance, material and time.
Nevertheless, an attempt of a logical
analysis of available data shall be made inspite of these limitations. Any
interpretation and conclusion from this report should to used, with these
limitations in mind.
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