THE EFFECTS OF SUBSIDY REMOVAL ON EFFECTIVE MARKETING OF PETROL IN NIGERIA (A CASE STUDY OF ENUGU STATE). A RESEARCH PROJECT MATERIAL ON MARKETING
ABSTRACT
Almost every home and business is powered by generator fired by subsidized petrol. It is very obvious that subsidy removal will worsen the country’s situation and worsen inflation. It is in the light of the above removal on the effective marketing of petrol in Nigeria using Enugu as the case study. In the course of carrying this research, the research used primary and secondary data, the primary data deals with personal observations, interview etc while secondary data contained the use of textbook, internet, journals, magazines, etc. The population comprises marketer, consumers and distributor of petrol products. Which is made of 150 respondents. The sample size was determined using Taro Yaamni’s formular in which the hypothesis was tested using chi-square. It was concluded and recommended that fuel subsidy affect marketers and therefore private investors and entrepreneurs should be allowed full participation in the sector be allowed full participation in the sector, a situation that will lead to effectiveness in the distribution of the product.
CAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The issue of subsidizing and subsidy removal has been on the public domain since the transition from military rule to civilian rule in 1999. But the one that seems to have generated a lot of controversy is the issue of subsidy removal. And one major sector that has always affected is the oil or fuel subsidy. Two reasons can be adduced for this. One is the fact that oil remains the backbone of the Nigerian economy. And secondly, large chunk of government money go into oil subsidizing.
However, the removal of fuel subsidy over the years has been a gradual one, until recently early this January, 2012 when the government embarked on a drastic removal of the subsidy – though it was claimed to be a partial one (N85 to N120 and later reduced to N97). Whether the removal was partial or not, the issue raised was that the timing was wrong i.e. January, there was no ‘safety net’ put in place before its removal, those responsible for the diversion of the subsidy money should be brought to book instead of the removal amongst other issues. Again, the government that the removal was to allow the free hands of demand and supply to determine market prices so as to restore efficiency in the production, refining, distribution and ultimately force price of fuel down just like in telecommunication industry.
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