Supply Chain and Ict

UNIVERSITY OF PORT HARCOURT

FACULTY OF MANAGEMENT SCIENCES

TOPIC: THE IMPACT OF FUEL SUBSIDY REDUCTION ON THE NIGERIAN ECONOMY AND THE PERFORMANCE OF ENTERPRISE MANAGERS TO BE SPECIFIC BY

OBY OKOYE

COURSE TITLE: BUSINESS AND ENVIRONMENT

TABLE OF CONTENTS

INTRODUCTION

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CHAPTER ONE:

WHAT IS FUEL SUBSIDY…...........………………. 5

CHAPTER TWO:

THE IMPACTS OF FUEL SUBSIDY ON THE.......... 9 PERFORMANCE OF ENTERPRISE MANAGERS

CONCLUSION

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REFERENCES

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INTRODUCTION

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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No consideration was given to the impact the removal of fuel subsidy will have on the performance of enterprise managers.

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