Table of Contents
ABSTRACT.. 2
CHAPTER ONE.. 5
INTRODUCTION.. 5
1.1 Background to the Study. 5
1.2 Statement of the Problem... 6
1.3 Objectives of the Study. 7
1.4 Research Questions. 7
1.5 Research Hypothesis. 8
1.6 Significance of the Study. 8
1.7 Scope of the Study. 9
1.8 Limitations of the Study. 9
1.9 Organization of the Study. 9
CHAPTER TWO.. 11
REVIEW OF RELATED LITERATURE.. 11
2.1 Introduction.. 11
2.2 Theoretical Review.. 12
2.3 Conceptual Review.. 14
2.3.1 Overview of Key Concepts. 14
2.3.2 Subsidy Policies. 14
2.3.3 Fuel Smuggling Dynamics. 14
2.3.4 Economic Implications. 15
2.3.5 Environmental and Health Concerns. 15
2.3.6 Security Risks. 15
2.3.7 Policy Responses. 16
2.3.8 Role of Technology. 16
2.3.9 Regional Cooperation.. 16
2.3.10 Community Engagement. 16
2.4 Empirical Review.. 17
2.5 Summary of Literature Review.. 19
CHAPTER THREE.. 19
RESEARCH METHODOLOGY.. 19
INTRODUCTION.. 19
RESEARCH DESIGN.. 20
DATA COLLECTION TECHNIQUES.. 20
SAMPLING STRATEGY.. 21
ANALYTICAL FRAMEWORK.. 21
CONCLUSION.. 22
CHAPTER FOUR.. 22
DATA ANALYSIS AND INTERPRETATION.. 22
4.1 Preamble. 22
4.2 Socio-Demographic Characteristics of Respondents. 23
TABLES BASED ON RESEARCH QUESTIONS.. 26
4.3 Analysis of the Respondents’ Views on Research Question one:. 26
4.4 Testing Hypothesis. 36
4.5 Discussion of Findings. 37
CHAPTER FIVE.. 40
SUMMARY CONCLUSION AND RECOMMENDATIONS 5.1 Summary of Findings. 40
5.2 Conclusion.. 40
5.3 Recommendations. 41
REFERENCES.. 43
Research Questionnaire: Subsidy and Fuel Smuggling Across West Africa (The Nigeria Experience). 45
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
For a very long period of time, subsidy programs and fuel smuggling have plagued the governments, economies, and regional stability of West Africa. The purpose of a subsidy is to lower the cost of basic goods and services to citizens well below the market price. In most of West Africa, these subsidies are grossly abused, leading to widespread inefficiencies, corruption, and fuel smuggling. Azevedo, J. (2018). Smuggling has become a lucrative illicit trade across the region, normally facilitated by disparities in fuel prices between neighboring countries. Since the main drivers are large differentials in fuel prices caused by differences in subsidy policies and market forces among West African nations, price disparities between neighboring countries usually facilitate this. These differentials, in turn, provide an incentive for smugglers to transport subsidized fuel, across borders, from such low-price countries into high-price countries illicitly, making huge profits in the process. Diarra, L., & Mihoubi, A. (2019). Fuel smuggling and subsidy mismanagement goes beyond economic issues into areas of social unrest, environmental degradation, and hindering development toward sustainable goals within the region. In addition to that, the government cannot manage to allocate the scarce resources properly because some of the revenues are lost through fuel smuggling and subsidy fraud. To resolve these issues, there must be regional cooperation between West African countries to change the subsidy policy, improve border security measures, and reduce corruption in regulatory bodies. ILO. (2020).
1.2 Statement of the Problem
Subsidy mismanagement and fuel smuggling in West Africa involve complexly deep-rooted issues that are a serious headache for regional stability, economic development, and governance. Subsidy programs, though intended to relieve citizens from heavy prices of basic goods and services, are in general hampered by corruption, inefficiency, and lack of transparency. This mismanagement not only leads to huge revenue losses for governments but also creates opportunities for fuel smuggling, since price differences between neighbours act as an incentive for cross-border trade. Fuel smuggling exacerbates the problem because resources are drained from national budgets, fueling organized crime and undermining regulatory efforts; hence, environmental degradation and social unrest are caused. Azevedo, J. (2018). Beyond subsidy mismanagement and fuel smuggling, there is also the wider context of poor governance, porous borders, and weakened institutional capacity across West Africa. These call for a harmonized collaboration between governments, international organizations, and civil society for reforms to the subsidy regime that require firmer regulatory mechanisms, higher levels of border enforcement, and calls on regional cooperation in fighting corruption and illicit trade networks. Insufficient policies and programs for addressing these issues retard not only economic development and social progress, but also the initiatives aimed at constructing resilient and inclusive societies in the West Africa region. Diarra, L., & Mihoubi, A. (2019).
1.3 Objectives of the Study
The main objective of the study is to examine Subsidy and Fuel Smuggling accross West Africa. Specific objectives of the study are:
- To quantify the impact of fuel subsidy removal in Nigeria on the prevalence of fuel smuggling across West Africa.
- 2. To identify the key factors contributing to the persistence of fuel smuggling in the region, even in the absence of significant price disparities.
- To evaluate the effectiveness of current strategies used by West African governments to combat fuel smuggling.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- 1. To what extent has the removal of fuel subsidies in Nigeria reduced the volume of fuel smuggled to neighboring West African countries, compared to the pre-removal period?
- 2. Beyond price differentials, what factors play a significant role in perpetuating fuel smuggling networks in West Africa?
- How effective are current border security measures, legal frameworks, and regional cooperation efforts in deterring and dismantling fuel smuggling operations in the region?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no statistical significant relationship between Fuel Subsidy and Fuel Smuggling across West Africa.
1.6 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the Commerce and Trade sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.7 Scope of the Study
The study is delimited to Nnpc. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.8 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.9 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.
