THE IMPACT OF FUEL SCARCITY ON NIGERIAN ECONOMY (A SPECIAL REFERENCE TO ENUGU METROPOLIS AREA)

CHAPTER ONE

1.0            INTRODUCTION

1.1     GENERAL BACKGROUND TO THE SUBJECT MATTER

Just like water and air is important to the living human being for daily duties and a hitch – free survival, the importance of fuel to automobile cannot be over looked.  A typical situation is in the cases halts because of the fact that there is shortage of fuel.  The importance of fuels in this our developing and technically inclined economy is fast like the mixture of oil and salt as far as the economy forgets growth as one of its goals.  Fuel is used in a variety of activities ranging from production, mobility, cooking, electricity, supply, sources of foreign exchange, to mention but few, to this extend, one would accept that fuel plays a tremendous role in the live of every citizen of the country and the country as a whole.

However, in recent times, there has been a rampant shortage in the availability of the commodity.  It is on this basis that the researcher intends to evaluate the causes and effects of fuel scarcity in the Nigeria economy, but shall concentrate on Enugu urban as a case study due to time and financial constraints.

EFFECTS OF FUEL SCARCITY

According to Longman English Dictionary, fuel is a form of energy, fuel is a form of energy used for the energizing of the machine used for production.  In that case, its scarcity will affect the living standard of the people in various ways:

a.                 It increase the cost of transportation

b.                 Social unrest

c.                  Electricity faults

d.                 The cost of food item and living

e.                  Adulteration of fuel and so on

The effects of fuel scarcity in Enugu metropolis cannot be over emphasize for its is one of the very prayer for the entire economic attribute to more about.

During 1998 February 12, business activities in Enugu state was brought to a light because there was no fuel.  In the state vehicles were seen in long queue in the filling stations even when there is fuel at the filling station or not.  Commuter were stranded in the various bus stop with no hope of motor coming to take them to their various destinations.