CAUSES OF FREQUENT SCARCITY OF PETROLEUM PRODUCTS IN NIGERIA AND MEASURES TO IMPROVE IT

Products such as petrol, kerosene, paraffin and diesel oil are obtained by processing petroleum. In Nigeria, these products serves as a major source of foreign exchange and fuel. Owing to certain problems, the frequent supply of these petroleum products are greatly ridiculed.

The major cause of this bad trend is the shortage of drilling facilities. Petroleum is a mineral resource that forms underground, so it needs to be drilled out before it is to be processed. Due to the unavailability of drilling facilities and equipments like the offshore oil rig, driving rigs, it becomes difficult to get sufficient quantity of petroleum products.

Another cause of this problem is inefficiency of the available refineries. In refinery, there is fractionating column, which is dived into several compartments. At a certain temperature, a product like petrol is obtained. These refineries are inefficient in their activities. This leads to insufficient production, which cases scarcity of petroleum products in Nigeria.

Lack of incentives from the government is not left out. Incentives serves as encouragement to the workers in the refinery. If they do not receive their payments on time, they would likely embark on strike actions. These actions would automatically bring to a halt the processing activities of the already mined petroleum and thereby resulting to their scarcity, for a hungry man is an angry man.

Inadequate transporting facilities are also barriers in the supply of petroleum products. Most of these finished products have no means through which they would have conveyed to areas where they are needed, such transporting facilities include big tankers and long vehicles, which carry petroleum products in storage banks.

These problems are not only limited to the aforementioned. The hoarding activities of retailers are also included. Petroleum products reach the final consumers through them. These retailers hoard petroleum products, thereby causing scarcity. Such retailers include private, government owned filling station and private dealers.

As there is problem, there must be a solution. These problems can be improved upon if not eradicated by taking the following measures. More refineries should be built and the already existing ones rehabilitated so as to enhance their efficiency. Government should give incentives to refinery workers so as to encourage them to work better. More transporting means should be provided in order to ensure uniform distributing of petroleum products. Petroleum products should also be given to accredited dealers so as to cancel the idea of hoarding.

In conclusion, the problem of frequent scarcity of petroleum products will be a thing of the past if my suggestions are well looked into and honestly implemented.

Updated: May 7, 2020 — 10:01 am

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