THE END TO FUEL SCARCITY IN NIGERIA IS NOT IN SIGHT THE WAY FORWARD

Hanafi Dele Ibrahim, Akintunde Patrick Adeniran & Lasabi Moses

Department Of Economics, Oduduwa University, Ipetumodu, Ile-Ife, Osun State,

Department of Banking and Finance, Oduduwa University, Ipetumodu, Ile-Ife,Osun State, Nigeria

Email: bamidelehanafl@yahoo.com

Abstract

The focus of this paper is to critically look at the causes of fuel scarcity in Nigeria with a view to addressing them. Most of the fundamental causes of fuel scarcity in the country including the following: present refineries are not adequately enough to meet the local demand for fuel. The local production of fuel is not sufficient for local consumption, excessive government intervention in the business of oil, problem of crude oil theft in Nigeria, frequent crude oil pipe lines vandalization, lack of modular refinery, and lack of private interest in the business of oil in Nigeria. Series of boardroom politics in the management of oil business in Nigeria. High level of corruption in the NNPC, turnaround maintenance that did not improve the level of production of oil, diversion of fuel into the neighbouring West Africa Countries, Oil subsidy claims that did not translate to high level of fuel importation into the country, fluctuation in the world market price, OPEC decision that may not favor crude oil production is another factor, Using of wrong template to determine the price of PMS is also another serious factor. In view of these aforementioned problems, suggestions are thereby recommended. All the refineries should be privatized, total deregulation of downstream sector of oil and gas should be put in place, more refineries should be built, alternative sources to PMS should be introduced, licenses should be given to expertise who are ready to build refineries in Nigeria, NNPC account should be audited on daily basis, oil subsidy for genuine oil marketers, outstanding balances for oil marketers should be considered for payment with immediate effect. Modular refineries should be built across the country, crude oil smugglers should be arrested and jailed for economic sabotage, modern and computerized refineries should be introduced into Nigeria, and fraudulent oil subsidy claims should be arrested and prosecuted

Keyword: Crude oil, Premium Motor Spirit (PMS), Vandalization, Corruption, Modular Refinery, Refinery, Waver, Concession, Scarcity.