Persistent fuel scarcity, price increases, and way forward in Nigeria

Engr. Kazeem Babalola Olawale and Emmanuel Simon Yayock
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Engr. Kazeem Babalola Olawale: Department of Automobile Technology, School of Secondary Education (Technical), Federal College of Education (Technical) Bichi, Kano State, Nigeria
Emmanuel Simon Yayock: Department of Automobile Technology, School of Secondary Education (Technical), Federal College of Education (Technical) Bichi, Kano State, Nigeria

International Journal of Research and Innovation in Applied Science, 2023, vol. 8, issue 5, 72-79

Abstract: The scarcity and regular increase in the price of petroleum products in Nigeria has significant negative effects on businesses, the transportation sector, and the economy as a whole. Businesses suffer as they have to spend more on transportation and energy costs, which reduces their profit margins. This increase in costs is often passed on to consumers, leading to inflation and a decrease in consumer purchasing power. The transportation sector is also heavily affected by petroleum product scarcity and price increases, as fuel costs are a significant part of their operational expenses. This leads to higher transportation costs for goods and passengers, which ultimately affects the prices of goods and services across the economy. Furthermore, the Nigerian economy is heavily reliant on oil revenue, and any disruptions in the production and distribution of petroleum products can have severe consequences for the government’s revenue and overall economic growth. The way forward for Nigeria is to diversify its economy and reduce its dependence on oil as its primary source of revenue. This can be achieved by investing in other sectors such as agriculture, manufacturing, and technology. Additionally, the government can work towards improving the country’s infrastructure, particularly in the area of transportation, to reduce the impact of fuel scarcity and price increases on businesses and the economy. Finally, there needs to be an increased focus on developing and implementing alternative and renewable energy sources to reduce the country’s dependence on fossil fuels.

Date: 2023
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