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THE IMPACT OF FUEL SCARCITY ON THE STANDARD OF LIVING OF CIVIL SERVANT (A STUDY OF ORUMBA NORTH LOCAL GOVERNMENT AREA OF ANAMBRA STATE)

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Abstract

The major purpose of this study was the impact of fuel scarcity on the standard of living of civil servants. It was also focused on determining the possible solution to the prevailing high prices of the essential goods and services. It was also directed towards eradicating the stigmatizing of fuel scarcity in Nigeria. The population of the study was appropriately estimated 1000 civil servants in the six departments in Orumba north local rernment area. The sample size for the study was 286 civil servants. This is selected using the Yaro Yamini Formula for sample selection. The instrument for data collection was structured questionnaire. Survey research design was adopted for the work to investigate the effect of fuel scarcity in Nigeria. The major findings of the study were that civil servants find it difficult to save some money after purchasing all their needs at a higher rate. Civil servants now look for cheaper goods in the market and this reduced heir feeding habit since their inc

 1.1      Background to the Study

The Impact of fuel scarcity on the standard of living of civil servant has led to some effect on the economy; non availability of fuel station has been having a greater effect on the operation of every civil servant.

According to the former senate president Chief Adolphus Nwagbara disassociated the senate from moves by the federal government to increase prices of petroleum products. He stressed that the current fuel scarcity in the country was traceable to hoarding by fuel dealers who are out to create artificial scarcity.

Before the years 1970, the Nigeria economy was heavily dependent on agriculture which constituted a very substantial part of its export earning for instance, in 1969 is 42%.

But in 1970’s witnessed the transformation of the Nigeria economy from one dependence on agriculture to one heavily dependent on oil. For example, the share of agriculture in Gross Domestic Product (GNP) declined steadily from 40% in early 70’s to about 20% in. 1980. By the later years oil accounted for 22% of GNP, 31% of the revenue productive areas and this

marked the beginning of instability in the economy of Nigeria. This is because agriculture and manufacturing firms which are the major factor of export oriented were paid scarcity attention.

In 1970 to 1974, development plans was being implemented and this necessitated huge importation of capital and non-capital goods. Nigeria, because of the oil boom indulged in self delusion of financial solvency economy power. The heavy dependence of the country on the oil and imported inputs rendered the economy heavily. To implement this situation, the administration government started to introduce structural adjustment programme (SAP) Second Tier Foreign Exchange Market (STFEM) and so many other policies by different administration. Also, these instead of correcting the situation they moved Nigeria economy from bad to worst.

Although before 1992, Nigeria was witnessing rise in the price of essential commodities and services. Then, the recently called the fuel scarcity which stated in 1992 added salt to the injury and this exacerbate the situation. This placed a worst limits to all the citizens of Nigeria especially; he civil servants. It is evidence that the civil servant can only cope with the living if their income is increased in the same or more proportion that the

consumer prices. However, unfortunately, this has not been so rather there is neither a reversed situation.

In addition, exchange rate depreciated which is the major source of direct and indirect upward pressure on prices. To cope with this Enugu Electricity Distribution Company (EEDC) increased its tariffs at whatever rate that pleased them and Nigeria airways was not left out. All these created a problem to the civil servants because their income can no longer afford their necessary needs since who managed to rent house because of EEDC bills will prefer using candle to electricity. Using telephone becomes hard.

Another cause of concern with respect to price rise in Nigerian is the fact that when the price of essential goods and services rise, they hardly fell back to their initial level even after the cause of the rise had disappeared. The generalized nature of the increase in price under fuel scarcity was that instead of some prices to rise while others falls; all prices rise, and almost to the same degree and this creates a direct impact in Nigeria as a whole and civil servants in particular.

 

1.2 Statement of the Problem

It is imperative that Nigeria as a nation blessed with natural resources, hence Nigeria that stands on the 6

th 

 position of the most oil producing country in whole world has been facing severe oil scarcity as a result of high handedness, corruption, vandalization which has been culminating to vaning socio-political cum economical impurities (problems) in various forms, since 1992 the problems of increase in the price of fuel has been essential commodities devaluation of currency, low life expectancy.

Hence, fuel scarcity has brought insufficient supply of oil from depots and filling stations leading to non availability of fuel ,as a result of hoarding and smuggling, vandalization of our pipes by thieves also affect the greater demand by the users such as vehicle owners, generator owners, power supply, domestic users and other industrial users which invariably affects in the living standard of the Nigeria civil servants as a result of increase in the prices of goods and services, increase in transportation fare, decrease in income, increase in social vices.

 

1.3 Research Questions

For the effectiveness of this study the following research questions

were formulated;

1. Does fuel scarcity contribute to the drastic high increase of the price

of essential goods and services in Nigeria?

1. To what extent does adequate supply of fuel, gas and kerosene positively affect the living standard of the Nigeria civil servants?
2. Does fuel scarcity has direct effects on the standard of living of the civil servants?

 

1.4      Purpose of the Study

The main purpose of this is to evaluate the effect of fuel scarcity and its implications on the standard of living of civil servants, however it is \focused on finding out the cause of fuel scarcity in Nigeria despite that Nigeria is a blessed oil producing country in the world. It will also critically analyze the causes of fuel subsidy in Nigeria since it will sort out possible solutions to fuel scarcity and its effects on the lives of the Nigerian civil

servants.

Therefore, the study was undertaken with these specific purposes.

1. To determine how fuel scarcity contribute to the drastic high increase

of the price of essential, goods and services in Nigeria.

1. To ascertain whether adequate supply of fuel, gas and kerosene can

positively affect the living standard of the Nigeria civil servants.

• To determine whether fuel scarcity has directly effect on the standard

of living of the civil servants.

 

1.5      Significance of the Study

This research study will be of great importance to the civil servants as it will enable them understand the full implication of the fuel scarcity following the researcher’s recommendations. These civil servants will find out new ways of managing and alleviating problems associated with fuel scarcity.

Secondly, it is hoped that the government will find the project very useful as   it   will   assist   in   re-examining   the   policies   and   strategic   of implementing fuel scarcity with regards to how it affects the civil servants.

Others that will benefit from the study are the academic and other researchers who may be interested in the area of the study.

 

1.6      Scope of the Study

The scope of this work covers the causes of fuel scarcity, the militating effect of fuel theft as one of the causes, the implications of perpetual fuel scarcity on the lives & living standard of Nigerian civil servants.

 

1.7      Limitations of the Study

The researcher was constrained by time as the researcher was combining the work and classroom work at the same time as a result, he was unable to cover other branches within and outside the local government of the same state.

There are also limited finance, which also prevented the researcher from traveling to the local government areas or to meet with appointment time schedule earlier. While some head of department (HOD’s) and staff were on leave and some refused to give useful information then referring the researcher to other local government

 

1.8      Operationalization/Definition of Terms

 Impact-: The effect something has on another thing.

Fuel Scarcity-: A situation where there is insufficient supply of fuel from depot to filling station, or non-availability of fuel due to smuggling or greater demand.

Civil  Servants-:  They are those paid employees working in the  core ministries of government like those who work in the educational sector like Polytechnic or Universities.

Economy-: The state of country or area in terms of the production and consumption of goods and services and the supply of money or it is the control   and   management of many   goods   and   other resources   of the commodity, society or house hold.

Fuel-: it is a material such as coal, gas or oil that is burned to produce heat or power.

Refinery: A place where crude oil is refined into more useful products such as, fuel.

Smuggling: The act of looking from one country to another unlawfully especially without paying tax.

Deport: A place where fuel is being store.

Hoarding: This is the act of storing fuel scarcity, more than is allowed.

 

1.9      Organization of the Study

This study will be made up of five chapters’ in all. Chapter one contain;

Background of the  Study,  State of the Problems,  Research  Questions, Purpose  of the  Study,   Significant  of the  Study,   Scope  of the  Study, Operationalization/Definition of Terms and Organization of the Study. Chapter two contains; Literature review and Theoretical Framework. Chapter Three contains; Area of the Study, Population of the Study, Sample and Sampling Techniques, Method of Data Collection, Instrument for data Collection, Reliability of the Instrument, Validity of Instrument, Distribution and Retrieval of Instruments and Method of Data Analysis. Chapter Four contain; Data presentation, Analysis of research question and Interpretation of Result. Chapter Five contains; Summary, Conclusion and Recommendations.