Project – Deregulation of fuel price effects on employee in Nigeria. A study of Nigerian National Petroleum Corporation Limited (NNPCL), Ikoyi Lagos.
ABSTRACT
The study examines the deregulation of fuel price effects on employee in Nigeria. A study of Nigerian National Petroleum Corporation Limited (NNPCL), Ikoyi Lagos. Four research objectives were used in the study, namely: to examine the impact of fuel price deregulation on the living standards of employees in Nigeria; to investigate how fuel price deregulation affects the commuting costs of employees in Nigeria; to analyze the correlation between fuel price deregulation and the disposable income of employees in Nigeria; to assess the coping strategies adopted by employees in Nigeria in response to fuel price deregulation. To select the needed samples for this study, the researcher used a total number of one hundred (100) workers of Nigerian National Petroleum Corporation Limited (NNPCL), Ikoyi Lagos. Chi square was in the data analysis. The study recommended that the government should consider implementing a gradual approach to fuel price deregulation to minimize the immediate impact on the living standards of employees. The study concluded that Fuel price deregulation has significant impact on the living standards of employees in Nigeria
CHAPTER ONE
INTRODUCTION
- Background to the Study
The deregulation of fuel prices in Nigeria has been a topic of significant interest and debate, with various studies examining its effects on different sectors of the economy. One area that has received considerable attention is the impact on employees. According to a study by Iwayemi (2008), the deregulation of fuel prices has led to increased costs of living, which has negatively affected employees, particularly those in low-income brackets.
In a similar vein, a study by Adenikinju (2003) found that the deregulation of fuel prices has led to increased transportation costs. This has had a direct impact on employees, as they have had to bear the brunt of these increased costs. This has resulted in decreased disposable income and increased financial stress for many employees.
Paragraph 3: However, not all studies have found negative effects. A study by Onakoya et al. (2012) found that the deregulation of fuel prices has led to increased efficiency and competitiveness in the oil sector. This has resulted in increased job opportunities and higher wages for some employees.
Despite these potential benefits, many employees have expressed dissatisfaction with the deregulation of fuel prices. According to a survey conducted by the Nigeria Labour Congress (2014), a majority of employees believe that the deregulation of fuel prices has led to increased economic hardship.
The impact of the deregulation of fuel prices on employees is a complex issue, with various factors at play. According to a study by Ogbuabor and Egwuchukwu (2017), factors such as the level of education, the sector of employment, and the geographical location of the employee can influence the impact of fuel price deregulation.
The deregulation of fuel prices in Nigeria has had mixed effects on employees. While some studies have found negative effects, others have found potential benefits. Further research is needed to fully understand the impact of fuel price deregulation on employees in Nigeria.
- Statement of the Problem
The deregulation of fuel prices in Nigeria has been a contentious issue, with significant implications for employees across various sectors. According to Akinlo (2012), the deregulation policy has led to an increase in fuel prices, which has, in turn, resulted in higher transportation costs. This has had a direct impact on employees, particularly those who rely on public transportation to commute to work.
The problem is further exacerbated by the fact that the increase in transportation costs has not been accompanied by a commensurate increase in wages. As Olayiwola and Okodua (2010) point out, this has led to a decrease in the real income of employees, thereby affecting their standard of living.
Furthermore, the deregulation of fuel prices has also led to an increase in the cost of goods and services. According to a study by Adenikinju (2003), this has resulted in inflationary pressures, which have further eroded the purchasing power of employees.
The deregulation policy has also had indirect effects on employees. As noted by Iwayemi (2008), the increase in fuel prices has led to a decrease in the profitability of businesses, particularly those that rely heavily on fuel for their operations. This has resulted in job losses, thereby increasing the unemployment rate in the country.
Despite these challenges, the Nigerian government has maintained that the deregulation of fuel prices is necessary to ensure the sustainability of the oil sector. However, as Ogbeidi (2012) argues, the government has not put in place adequate measures to mitigate the adverse effects of the policy on employees.
The deregulation of fuel prices in Nigeria has had significant effects on employees. While the policy may have some economic merits, it is clear that it has also resulted in numerous challenges for employees. Therefore, there is a need for further research to explore ways of mitigating these effects.
- Aim and Objectives of the Study
The aim of the study is to examine Deregulation of fuel price effects on employee in Nigeria. The specific objectives are:
- To examine the impact of fuel price deregulation on the living standards of employees in Nigeria.
- To investigate how fuel price deregulation affects the commuting costs of employees in Nigeria.
- To analyze the correlation between fuel price deregulation and the disposable income of employees in Nigeria.
- To assess the coping strategies adopted by employees in Nigeria in response to fuel price deregulation.
- Research Questions
The research questions are buttressed below:
- How does fuel price deregulation impact the living standards of employees in Nigeria?
- In what ways does fuel price deregulation affect the commuting costs of employees in Nigeria?
- Is there a correlation between fuel price deregulation and the disposable income of employees in Nigeria?
- What coping strategies are adopted by employees in Nigeria in response to fuel price deregulation?
- Research Hypothesis
The hypothetical statement of the study is buttressed below:
Ho: Fuel price deregulation has no significant impact on the living standards of employees in Nigeria.
H1: Fuel price deregulation has significant impact on the living standards of employees in Nigeria.
- Significance of the Study
The study of the effects of fuel price deregulation on employees in Nigeria is of significant importance due to the potential implications it has on the socio-economic fabric of the country. Nigeria, being a major oil-producing nation, has a significant portion of its population employed in sectors directly or indirectly linked to the oil industry. Therefore, any changes in the fuel price, such as deregulation, can have a profound impact on these employees.
The living standards of employees can be significantly affected by fuel price deregulation. This study aims to shed light on the extent of this impact. By understanding how deregulation affects living standards, policymakers can make informed decisions about whether to pursue such policies and how to mitigate any negative effects.
Another significant aspect of this study is the investigation into how fuel price deregulation affects commuting costs. For many employees, commuting costs represent a significant portion of their disposable income. An increase in fuel prices due to deregulation could therefore have a substantial impact on their financial situation.
This study also aims to analyze the correlation between fuel price deregulation and the disposable income of employees in Nigeria. Understanding this correlation can provide insights into how changes in fuel prices can affect the broader economy, as disposable income is a key driver of consumer spending and economic growth.
The coping strategies adopted by employees in response to fuel price deregulation is another area of significance. This can provide valuable insights into the resilience and adaptability of the Nigerian workforce in the face of economic changes. It can also inform strategies for supporting employees during periods of economic transition.
Lastly, the potential long-term effects of fuel price deregulation on job satisfaction and productivity is a crucial area of study. Job satisfaction and productivity are key determinants of economic growth and societal well-being. Understanding how fuel price deregulation might affect these factors can help policymakers and employers to anticipate potential challenges and opportunities.
- Scope of the Study
The study examines deregulation of fuel price effects on employee in Nigeria. A study of Nigerian National Petroleum Corporation Limited (NNPCL), Ikoyi Lagos.
- Operational Definition of Terms
- Deregulation: This is the process of removing or reducing state regulations, typically in the economic sphere. It’s the undoing or repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s.
- Fuel Price: This refers to the cost per unit of fuel. This can vary greatly depending on the type of fuel (like gasoline, diesel, or natural gas), the location, and the current market conditions. Fuel prices can significantly impact the economy and are often a major consideration in transportation and logistics planning.
- Effects: In general, effects refer to the results or consequences of an action or condition. It’s the change that is a result or consequence of an action or other cause.
- Employee: An employee is a person who is hired to provide services to a company on a regular basis in exchange for compensation and who does not provide these services as part of an independent business.
Project – Deregulation of fuel price effects on employee in Nigeria. A study of Nigerian National Petroleum Corporation Limited (NNPCL), Ikoyi Lagos.