CHAPTER ONE

• BACKGROUND OF THE STUDY

Nigeria is blessed with rich Human and Natural resources; one of which is Crude Oil. The different regions of Nigeria has its own specific Natural resources. Crude Oil is mainly found in the South-South part of Nigeria but recently, some south- western states have discovered oil in their regions.

Since the time Nigeria discovered Crude Oil on its soil, it has channeled its generation to it. The nation neglected and forgot other resources like the Coal, Salt, Cocoa, Timber, Oil Palm etc. and even Agriculture which any nation must not forget since it is a means of survival.

Oil distribution has been a great challenge in Nigeria. Since it is not evenly distributed, it means a larger percentage of the country’s revenue comes from the states in the south-south region. Even though the country’s revenue is mainly from here and it is expected that the indigenes of the region should automatically have a good standard of living, the opposite is the case. They are faced with Oil Theft and Illegal Oil Bunkering, Corruption at both federal, state and local levels, incapacitation to cultivate their own food due to oil spillage on their soil and generally lack of social amenities. All these challenges is as a result of direct or indirect effect of the tapping of the resource, legally and illegally (Pauline, myproject.ng, 2018).

Even though the federal government and Oil companies try as much as possible to augment these challenges for the indigenes of the oil-producing states by educating, empowering, employing and allocating enough funds for them, Corruption at state and local levels has made the effort fruitless.

Also, other regions of the country without the Crude oil are somewhat neglected to generate their own revenue because the Federal government budget is not always enough.  The will to concentrate on the effective use of the resources they have has died.

A profound solution to the challenges of oil distribution has to be promptly gotten because even the crude oil is not totally reliable.

1.2     STATEMENT OF THE PROBLEM

Crude Oil has been a blessing to Nigeria as a whole, likewise there has been challenges in the nation because of it. Since the distribution of crude oil is not even in all the regions, both the regions with crude oil and those without it have their challenges. A solution has to be procured to manage the effect of uneven distribution of Oil in Nigeria.

1.3     OBJECTIVES OF THE STUDY

The aim of this studies is to examine the challenges and possible solutions to oil distribution in Nigeria. The objectives are:

1. To determine if the Oil producing states have any challenges.
2. To find out if the non-producing states also have challenges.
3. To procure possible solutions to the challenges of oil distribution in Nigeria.

1.4     RESEARCH QUESTIONS

1. Do the Oil producing states in Nigeria have any challenge?
2. Are the non-producing states facing any challenge?
3. What are the possible solutions to the challenge of oil distribution in Nigeria?

1.5     SIGNIFICANCE OF THE STUDY        

This research will look critically into the challenges and procure possible solutions to the distribution of oil in Nigeria. It shall enlighten the Nigerian government and its citizens on the advantages and disadvantages oil has brought to the Nigerian economy. It shall also suggest other ways in which the nation can generate its revenue.

1.6     SCOPE OF THE STUDY

The idea of the research work is to search for possible solutions to the challenges of oil distribution in Nigeria. It shall cover a range of the history about oil discovery and distribution in Nigeria. It shall also cover a range of respondents from regions that produce crude oil and those that do not produce crude oil.

1.7     LIMITATION OF THE STUDY  

Finance for the general research work will be a challenge during the course of study. Correspondents also might not be able to complete or willing to submit the questionnaires given to them.

However, it is believed that these constraints will be worked on by making the best use of the available materials and spending more than the necessary time in the research work. Therefore, it is strongly believed that despite these constraint, its effect on this research report will be minimal, thus, making the objective and significance of the study achievable.

1.8     DEFINITION OF TERMS

Human Resources: these are the people who make up the workforce of an organization, business sector or economy.

Crude Oil: this is a naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials.

Revenue: this is the income that a business has from its normal business activities, usually from the sale of goods and services to customers.

Corruption: this is a dishonest or fraudulent conduct done by a person entrusted with a position of authority, often to acquire personal benefit.

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