...FUEL SUBSIDY REMOVAL AND THE NIGERIAN ECONOMY (A CASE STUDY OF ABAKILIKI LOCAL GOVERNMENT AREA, EBONYI STATE) BY NKWAGU OLUCHI WINIFRED PA/2008/182 DEPARTMENT OF PUBLIC ADMINISTRATION FACULTY OF MANAGEMENT AND SOCIAL SCIENCES CARITAS UNIVERSITY, AMORJI-NIKE, ENUGU. ENUGU STATE AUGUST 2012 1 TITLE PAGE FUEL SUBSIDY REMOVAL AND THE NIGERIAN ECONOMY (A CASE STUDY OF ABAKALIKI LOCAL GOVERNMENT AREA, EBONYI STATE) BY NKWAGU OLUCHI WINIFRED PA/2008/182 A RESEARCH PROJECT PRESENTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF BACHELOR OF SCIENCE (B.SC.) DEGREE IN PUBLIC ADMINISTRATION DEPARTMENT OF PUBLIC ADMINISTRATION, FACULTY OF MANAGEMENT AND SOCIAL SCIENCES, CARITAS UNIVERSITY, AMORJI-NIKE, ENUGU, ENUGU STATE. AUGUST 2012 2 CERTIFICATION This is to certify that Nkwagu Oluchi Winifired with Registratoin Number PA/2008/182 has successfully carried out a research work on “Fuel Subsidy Removal and the Nigerian Economy (A case Study of Abakaliki Local government Area, Ebonyi State.) in partial fulfillment of the requirement for the award of Bachelor of science (B.Sc.) degree in Public Administration ---------------------------------Mr. M. O. Ugada (Project Supervisor) -------------------------Date --------------------------------Mr. M. O. Ugada (HOD Public Adminstration) ---------------------------Date -------------------------------External Examiner ---------------------------Date ...
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...Function Application: Enlightment to the Impact of Fuel Subsidy Removal in Nigeria Abang I. S.*, Elufisan T.O., Okwubunne A. C. National Centre for Technology Management, an Agency of the Federal Ministry of Science & Technology, Obafemi Awolowo University, Ile-Ife, Nigeria Abstract This paper adopts a linear function approach to analyse the effect of fuel subsidy removal on the value of Nigerian Naira and local production in the country. Data for about eight different periods where fuel hike occurred in Nigeria was used, and a mathematical model with the aid of a graph, was also developed to aid estimated calculation of Naira’s value. We also deduced from this study that increase in fuel pump price has an adverse effect on the standard of living of the people, since fuel is essential for the transportation of major Nigerian commodities, such as Agricultural produce and other market product. The significant impact of the upsurge of petroleum pump price on the price of goods transport initiates this study; with the aim of checking its effect on the purchase value of naira. Though this study is totally neutral about the subsidy removal, its just to enlighten us on the topic and let viewers decide. Keywords GDP, Subsidy, Data, Scarcity calls for a quick intervention. In a bid to averting the continual occurrence of this problem, Nigeria government have decided to intervene by deregulating the petroleum sector in the form of subsidy removal. The aim of the government for doing this is...
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...system. (Pictorial techniques may be used which are appropriate to illustrate and justify the evaluation, e.g. Graphs, charts, economic curve diagrams, etc.) (700 – 1,000 words) Question 2 * Critical evaluation of measures used by governments and central banks to manage the economies of their countries. * By critically evaluating, using convincing arguments in support of the measures used to reduce, minimise or alleviate economic difficulties many countries face. (Examples should be used in the submission to illustrate the justified view) (1,100 – 1,500 words) 1. BUSINESS includes all doings linked with production, trade, banking, coverage, finance, energy, advertising, packaging etc. ENVIRONMENT refers to all external forces, which have comportment on the functioning of business. The environment includes factors outside the firm which can lead to opportunities for or threats to the firm. There is close relationship between business and its economic environment. Business obtains all its needed inputs from the economic environment and it absorbs the output of business units. ECONOMIC POLICY is the term used to describe administration actions that are intended to influence the economy of a city, state or nation. When there is a modification / variation in the government policies, the...
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...“It’s a terrible place to be in, it’s not habitable, but people live there because they have no choice,” says Iheanyi Ohiaeri, a citizen of Nigeria (Tunnicliffe 20-22). People like Iheanyi live in devastating conditions, day and night. The fact that most inhabitants don’t even get electricity for light during the night while citizens of one of the most oil rich places in the world, should blow your mind. Nigerians don’t have access to the plentiful oil surrounding them and the horrible conditions they live in because of such drillings is killing them. Their environment, economy, and daily conditions all reveal the suffering citizens endure as a result of oil. “Produced” water which comes from a well, is brought up along with oil and gas containing toxins such as: benzene, arsenic, lead, toluene, and varying amounts of radioactive pollutants (Haerens 27-32)....
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...services companies. Oil and gas companies must hire Nigerian workers, unless they can demonstrate that particular positions require expertise not found in the local workforce. Positions in finance and human resources are almost exclusively reserved for Nigerians. Nigerian port practices continue to present major obstacles to trade. Importers report erratic application of customs regulations, lengthy clearance procedures, high berthing and unloading costs, and corruption. These factors can contribute to product deterioration, which may result in significant losses for importers of perishable goods. Nigeria uses nontariff measures to achieve self-sufficiency in certain commodities under its backward integration program Consequences of Trade Restrictions A combination of tariffs, quotas, and subsidies can serve economic, and sometimes political, objectives, but they can also impose significant costs. Tariffs or quantitative restrictions protect domestic industries and workers from foreign competition by raising the prices of imported goods. In this respect, some argue that import restrictions should be viewed as a tax on domestic consumers. According to some experts, the costs of protecting the jobs of workers in vulnerable industries, which are ultimately borne by taxpayers or consumers, far exceed the potential cost of retraining and finding new jobs for those workers. A similar analysis can be applied to export subsidies. Subsidizing exports can cost governments much...
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...On OKECHUKWU DIYOKE DIOKC81 | 1 INTRODUCTION An economy refers to the full network of distributers, producers and consumers of goods and services within local, regional or national communities. Globalization refers to the process of the increase in economic, political, social and ethnic relations across international boundaries. Globalization is aimed primarily at the constant theories that shape the political and socioeconomic development of nations across the globe. It looks at the continued increase in the collapse of trade barriers and increased world trade and integration; globalization can be seen as an extension that regularly restructures the way nations interact amongst themselves by breaking down their individual barriers in areas of culture, commerce, finance, communication, and several other fields of struggle. This on-going change can be seen from its thrust of legitimate governance, liberal democracy, gender equality, environmental stability, and free market economy among other aggregate values for people of the member states. Globalization creates a compelling inclination for the systematic development in the modern world today as a result of the problems it poses to the states in the form of challenges. This essay looks at the definition of globalisation, the concept of the process of globalization, and how it affects the Nigerian economy. OKECHUKWU DIYOKE DIOKC81 | 22/08/11 2 THE CONCEPT OF GLOBALISATION Many theories have been put forward...
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...NIGERIA: CRUCIAL ISSUES A. O. O. OGUNTOYE,Pk.D Introduction Education is the fastest growing social sector of the Nigerian economy, at least, in quantitative terms. Education grew slowly but steadily during the colonial era but there was a dramatic leap forward in enrolment in the 1970s after the windfall from an oil wealth that came in form of sale of oil, oil royalties and taxes on oil. Both the wealth and the expansion in enrolment were unprecedented 'in the annals of the country. The boom, which lasted for a few years, because of its nature and the kind of people that managed it, spelt doom for education. This chapter briefly examines past trends in enrolments and educational financing with a view to assessing present predicaments and future possibilities. There has been a monolithic supplier of funds to education - the government. This source, which is now over-burdened and overwhelmed, cries out for relief, which cannot come in easy because it involves hard political choices with attendant costs, moreso, because it is easier to destroy by a stroke of the pen in the 1970s when the fever of school take-over and free education spread like wild-fires. Demand and Supply of Education in Nigeria The demand and supply of education follow a linear relationship that keeps on expanding in response to the average growth in population of more than 2.5% annually. Nigerians having tasted education become insatiable, moreso, because of the profound importance attached to education as an...
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...Can globalisation be seen as positive or negative for the Economic Development of Nigeria? A focus on Shell and the International Monetary Fund Research Issue: Globalisation in its current form is viewed in the Western world as a positive influence for the Economic Development of under developed countries. However these views on the benefits brought to developing countries have been frequently disputed. The research we are undertaking is a pilot study based on documentary research. Our source of information is secondary data such as books, articles, newspapers and journals. The study employs a qualitative approach. Even though globalisation is often viewed as positive we have discovered that this is not always the case in relation to its effects in Nigeria. Judging from our analysis, globalisation through the IMF and Shell has had an overall negative impact on Economic Development. However, Shell is attempting to act more responsible by adjusting its position in order to have a more positive impact on Economic Development. On the other hand, the IMF has not adapted to Nigeria but...
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...inclusive growth. Financial inclusion otherwise known as “inclusive growth” can be seen as the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society. Due to incessant desire to incorporate disadvantaged segment of the society into financial net, both monetary and fiscal authorities have embarked upon a robust strategy toward addressing the gap. The former (monetary authority) had set out a visible road map necessary for direct effect on savings, investment, rate of interest, pension and general form of financial services. While the later (fiscal authority) have been making a remarkable effort toward achieving sustained economic growth especially in rural areas, this would translate accelerated and friendly society necessary for effective implementation of Financial Inclusion Strategy and thus would stimulate economic development generally, more new jobs would be created, society would also be empowered to generate more wealth and making the economy competitive. Inclusive growth is thus arguably popular with most governments on the global development priorities presently, and Nigeria is not left out of the...
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...but we think that they should plan to establish a manufacturing plant in that country. Pro’s and Con’s of entering the market ➢ The two wheeler market runs on high economies of scale. So it is very essential to capture the mass target market. Else, huge loss may occur. ➢ The need for technical expertise is high. ➢ Owning a strong distribution network is important and is very costly. ➢ Suppliers of auto components are fragmented and are extremely critical for this industry since most of the component work will be outsourced. Proper supply chain management is a costly yet a critical need. ➢ The industry rivalry is extremely high with any product being matched in a few months by competitor. This instinct of the industry is primarily driven by the technical capabilities acquired over years of gestation under the technical collaboration with international players. As Bajaj, along with its competitors, such as Hero Honda, TVS, Yamaha, are active at multipoint competitions; it is likely for the competitors to enter if Bajaj is successful at Nigeria. ➢ Petrol prices are always fluctuating in Nigeria. But with the recent change in the policy to reduce the subsidy, the prices of petrol will remain constant at the current prices. This will have a positive effect on purchases of two wheelers. ➢ The second hand car prices of small cars have come down sharply in the recent past. This will shift the demand from higher-end two-wheelers to cars and...
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...European Union Nigerian Energy Support Programme (NESP) The Nigerian Energy Sector An Overview with a Special Emphasis on Renewable Energy, Energy Efficiency and Rural Electrification 2nd Edition, June 2015 Implemented by 2 Acknowledgements This report on the Nigerian energy sector was compiled as part of the Nigerian Energy Support Programme (NESP). NESP is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and funded by the European Union and the German Federal Ministry for Economic Cooperation and Development (BMZ). The authors would like to thank the GIZ Nigeria team for having entrusted this highly relevant subject to GOPA- International Energy Consultants GmbH, and for their extensive and dedicated inputs and guidance provided during implementation. The authors express their gratitude to all project partners who provided particularly valuable and interesting insights into ongoing activities during the course of the project. It was a real pleasure and a great help to exchange ideas and learn from highly experienced management and staff and committed representatives of this programme. How to Read Citations Bibliography is cited by [Author; Year]. Where no author could be identified, we used the name of the institution. The Bibliography is listed in Chapter 10. Websites (internet links) are cited with a consecutive numbering system [1], [2], etc. The Websites are listed in Chapter 11. 3 Imprint Published by: Deutsche Gesellschaft...
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...DEPARTMENT OF MASS COMMUNICATION PUBLIC RELATIONS AND CONSENSUS BUILDING: An Appraisal of the Public Communication Programmes for the Nigerian Downstream Petroleum Sector Reforms – 2000 to 2010 BY YUSUF MU’AZU I.D. NO. PGA/09/06230 Being a Non-Thesis Based Seminar presented to the Department of Mass Communication in partial fulfillment of the requirements for the award of the Degree of Doctor of Philosophy (Ph.D) December, 2010. ABSTRACT This study seeks an understanding of the role of public relations in building consensus on reforms and engendering public acceptance of government policies. The study attempts to achieve this through an assessment of the public communication programmes for the Nigerian downstream petroleum sector reform being executed by the Federal Government. The study established that there is a nexus between public relations, consensus building and reform success, as demonstrated in a number of countries that have had successful reforms. In the case of Nigerian, the study revealed that absence of strategic communication in the design and implementation of reforms has occasioned poor understanding of some of the reforms leading to lack of consensus and eventual failure of the reforms. The study recommends an effective communication programming for the deregulation of the Nigerian downstream oil sector, which must be based on sound opinion research and analysis, coordinated across Ministries and relevant Agencies, and integrated...
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...financing the manufacturing sector in Nigeria. The discussion centered on the state of the Nigerian manufacturers, background, challenges and the imperatives of the capital market meeting the financial and investment challenges of the sector in the face of recent economic reforms and increasing competition posed by globalization. The study sought to determine the extent to which the Nigerian capital market contributes to the development of manufacturing industries. An attempt was made to highlight government intervention in funding the sector and the reality of the country’s manufacturing sector. The study revealed that the Nigerian manufacturing sector has been on the decline owing mainly to government reliance on the oil industry, the decaying infrastructural facilities in the country and non-access to investment fund by local manufacturers. The study concluded that the capital market, despite the problems and challenges it may faced, is a veritable tool in the growth and development drive of the country’s manufacturing sector. 1. Introduction The manufacturing sectors in any country of world rely on medium and long-term fund to carry out its productive activities. Equity capital alone is never adequate and external sources of funds are usually sought. Such needed funds are not available in the money market; The capital market is where such funds are sourced. Nigeria, like other economies of the world has her own capital market. The growth and development of the capital market...
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...Economic Benefits from Air Transport in Nigeria Nigeria country report Acknowledgements Oxford Economics gratefully acknowledge the help that we received from the International Air Transport Association (IATA) in preparation of this report. Through a survey conducted by IATA many organisations across the aviation industry supplied us with data that has formed an integral part of our analysis. In addition, the Airports Council International (ACI) very kindly provided us data on the economic activities at airports. We would like to thank all these organisations for their generosity in supplying this data, without which this report could not have been written. A note on the data reported in the report Unless otherwise stated, the numbers reported in this report relate to the calendar year 2010. Oxford Economics 2012 v1.1 2 Nigeria country report Contents Facts & figures.......................................................................................... 4 1 1.1 1.2 Consumer benefits for passengers and shippers ......................... 7 Consumer benefits ..................................................................................... 7 Estimated consumer benefits ..................................................................... 8 2 2.1 2.2 2.3 Enabling long-term economic growth............................................ 9 Connectivity and the cost of air transport services .................................... 9 How aviation...
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...Until about four years ago, precisely January 2012, Nigeria was essentially a cash based economy. Then, the banks had to contend with high volume of transactions, which resulted in long queues at banking halls. The queues alone made banking difficult, to the extent that many Nigerians decided to remain unbanked. However, with the introduction of cashless policy, which signaled the adoption of electronic banking, through Automated Teller Machine (ATM), Point of sale (POS) and others, the Central Bank of Nigeria (CBN) intended to bring banking hall and banking services close to the people, even in the comfort of their homes. With the cashless policy, there were expectations of improved security, as it was intended to discourage movement of cash, and reduce traffic at the banking halls. The policy has however not met these expectations, as queues refused to disappear. Some customers complained that the policy has limited their cash transactions, no matter the type of electronic transaction they use. But competition in Nigerian banking sector has become intense, partly due to regulatory imperatives of universal banking and also due to customers’ awareness of their rights. Bank customers have become increasingly demanding; they require high quality, low priced, immediate service delivery and improved value from their chosen banks. And in the face of all these complaints, some continue to shy away from all forms of electronic banking, like ATM, that are devoid of queue. Findings show...
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