Audience Perception of Federal Government Removal of Fuel Subsidy in January 2012
CHAPTER ONE
Objectives of the Study
The objectives of this study are:
- To examine the audience perception of fuel subsidy removal
- To examine the cause of the fuel subsidy removal
- To ascertain the effects of fuel subsidy removal on the citizens of Nigeria
CHAPTER TWO
LITERATURE REVIEW
Introduction
This chapter does an extensive review of audience perception on federal government removal of fuel subsidy in Nigeria under the following captions: conceptual framework describing the concept of perception and subsidy, the origin of fuel subsidy in Nigeria, the history of fuel subsidy removal in Nigeria and the possible causes/reasons for removal, impact of fuel subsidy removal on the populace of Nigeria. Finally, the researcher reviews theoretical frameworks pertinent to the topic of study.
Review of concepts
Concept of Perception
Like most concepts within the social science disciplines, perception has been defined in a variety of ways since its first usage. From the lay man‟s perspective, perception is defined as an act of being aware of “one‟s environment through physical sensation, which denotes an individual‟s ability to understand”. However, many social psychologists have tended to develop the concept around one of its most essential characteristics that the world around us is not psychologically uniform to all individuals. This is the fact, in all probability, that accounts for the difference in the opinions and actions of individuals/groups that are exposed to the same social phenomenon. At this point, it is important to take a look at some of these definitions in order to better appreciate the point being made (Durojaye, O. B., Hammed, T. A and Godwin, O. U., 2009).
According to Nelson and Quick (1997) perception is the process of interpreting information about another person. What this definition has clearly stressed is that the opinion an individual forms about another person depends on the amount of information available to the individual and the extent to which an individual is able to correctly interpret the information you have acquired. In other words, you may be in possession of the same set of information that other people have on a particular situation, person or group but still arrive at different conclusions due to individual differences in the capacity to interpret the information that you all have.
Rao and Narayan (1998) obviously share the main characteristics of the above definition. However, they emphasise that perception ranks among the “important cognitive factors of human behaviour” or psychological mechanism that enable people to understand their environment. In their own words, “perception is the process whereby people select, organise, and interpret sensory stimulations into meaningful information about their work environment.” They argue that perception is the single most important determinant of human behaviour, stating further that “there can be no behaviour without perception.” Though focussing on managers in work settings, Rao and Narayan draw attention to the fact that since there are no specific strategies for understanding the perception of others, everyone appears to be “left with his own inventiveness, innovative ability, sensitiveness and introspective skills to deal with perception.
In respect to this, Asemah cited in GistArea (2013) sees audience perception as the views, expressions and feelings held by the general members of the society about issues, events, happenings and occurrences in the society. These happenings may be at the local, national or international level. The media be it electronic or print are always available to reflect and regulate interests in our society. When they raise such an issue, it is either one is affected directly or indirectly by the issues raised by the media.
Concept of Fuel Subsidy Removal
Subsidy by definition is any measure that keeps prices consumers pay for good or product below market levels for consumers or for producers above market. Subsidy means benefit given by the government to individuals or businesses whether in form of cash, tax reduction or by reducing the cost of goods and services. The purpose of subsidy is to help individuals and businesses purchase/acquire essential goods and services that they may not be able to afford, under normal circumstances. Subsidies take different forms. Some subsidies have a direct impact on price. These include grants, tax reductions and exemptions or price controls. Others affect prices or costs indirectly such as regulations that skew the market in favour of a particular fuel, government sponsored technology or research and development (Adebiyi, 2011).
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
Based on the nature of the study, the following interdependent tools were used to validate the contents of the research:
- Research
- Population of the Study
- Sample Technique/Sampling
- Description of Research
- Validity of Data gathering
- Method of Data
- Method of Data Analysis
Research Design
Research Design refers to the overall strategy that was used to integrate the different components of the study in a coherent and logical way, thereby, ensuring the effective address of the research problem; it constitutes the blueprint for the collection, measurement, and analysis of data. Based on the nature of the study the researcher employs survey method, using structured questionnaire to proffer answers to the research questions.
Population of the Study
Enugu metropolis which comprises Enugu North, Enugu East and Enugu South with a population of 242,140, 277,119 and 198,032 respectively (National Population Census, 2006), bringing the population of the study to 717,291. This was the population of Enugu metropolis as at 2006 national population census.
Sampling Size /Sampling Technique
A sample is taken to mean is any scientific and empirical study a small group of element or subjects drawn through a definite procedure, which must be verifiable, from specified population. (Obasi 2013). It is also a section or part of an entire population of people or things which are studied to obtain information about the research variables (Madueme, 2010). Using purposive sampling technique, the researcher purposively selected a sample size of 200 respondents. Although the researcher‟s focus was on residents of Enugu metropolis yet the researcher decided to use the purposive sampling technique. Why the researcher had to use purposive sampling was because she had certain characteristics in mind and such characteristics had to do with the targeted population as reflected in the content of the questionnaire and of the audience can only provide answers to.
CHAPTER FOUR
DATE PRESENTATION AND ANALYSIS
This chapter presents the analysis, interpretation and discussion of findings of collected data. Section 4.1 focused on data analyses and interpretation, section 4.2 focused on test of hypothesis, while section 4.3 focused on the discussion of findings. Collected data were analysed and presented using, tables, frequencies, percentages and Chi-square statistical analysis.
Data Analyses and Interpretation
A total of 200 copies of questionnaires were distributed amongst residents of Enugu Metropolis. The number retrieved was 195, representing 97.5% response rate. The study answered the following research questions.
- What is your perception of the fuel subsidy removal?
- What would you consider to be the cause of fuel subsidy removal?
- What do you considered to be the effects of fuel subsidy removal on the citizens of Nigeria?
Analysis of Demographic Information of Respondents
Items 1-4 in the questionnaire answered questions on the background information of the respondents.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
Introduction
The overall objective of this study was to investigate Audience Perception of Federal Government removal of Fuel Subsidy in Enugu Metropolis. The researcher also called attention to the effects of fuel subsidy removal amongst the citizen of Nigeria. This survey adopted questionnaire as a data collection tool towards proffering answers to the research questions. Having analysed the data collected, this chapter focused on the summary of findings, conclusion and recommendations of the study.
Summary
The findings among others revealed that:
- Audience perceived the removal of oil subsidy as an act of selfishness and wickedness by the federal government. That is federal government’s means of promoting its selfish interest.
- The study also revealed that two major causes/reasons for fuel subsidy removal was because of corruption in the oil sector and gross mismanagement. Also due to few corrupt individuals that are united to promote their private
- Finally the study revealed that the removal of oil subsidy will lead to increase in the cost/standard of living, increase the prices of transportation, food commodities and thus compound poverty and increase in operating costs of micro and small enterprises
Conclusion
This study provides information relating to perceptions, causes and effects of federal government fuel subsidy removal as it affects the residents of Enugu metropolis. It demonstrates that audience perceptions of federal government fuel subsidy removal are detrimental to the general populace of Enugu metropolis. Instead of improving standard of living it brings more harm to the citizenry. The researcher found that fuel subsidy removal is mainly due to corruption and gross mismanagement in the oil sector. These has culminated into increase in prices of fuel pump and oil products, increase in prices of food commodities and transportation and increase in operating costs of micro and small enterprises to mention but a few. The study finally revealed that there is a significant relationship between fuel subsidy removal and cost/standard of living of the general populace
Recommendations
Based on the findings and conclusions of this study, the following recommendations were made:
- The government should adjust and reprioritize the proposed spending in the yearly budget to fund fuel subsidy in a way that addresses basic needs and improve the wellbeing of its citizens and also checking the so called
- If the fuel subsidy must be removed, modalities should be put in place before removing subsidy on fuel in other to help cushion the adverse effect of the subsidy
- Deregulation would work if the various law enforcement agencies such as the ICPC and EFCC and stakeholders are empowered and well-funded to perform effectively and also bringing to book the cabals that constitute the beneficiaries of the fuel subsidy
- The federal government should look in the direction of rebuilding our refineries in other to reduce operational cost and cost of producing fuel
- The federal government should look into other sector of the economy such as agriculture, tourism etc. in other to boost the economy.
- This study should also be extended to other metropolis possibly across the geopolitical zone of the country in other to have an insight into what is obtainable in other
References
- Adebiyi, O. (2011). Fuel Subsidy: The True Story. Retrieved from: Http://234 Next.com Balogun, J. B. (2012). Removal of Subsidy: a Question of Trust Retrieved from htt://www.iiste.org
- Best Research Projects. (2012). Fuel Subsidy Removal in Nigeria: Problems, Prospects and a Way Forward. Retrieved from http://www. bestresearchprojects.blogspot.com.
- Durojaye, O. B., Hammed, T. A and Godwin, O. U., (2009). Perception and Conflict. Course Guide PCR 276. National Open University of Nigeria School of Arts and Social Sciences.
- Ering, S. O. and Akpan, F.U. (2012). The Politics of Fuel Subsidy, Populist Resistance and its Socio-Economic Implications for Nigeria. Global Journal of Human Social Science 12 (7), P.1
- Gist Area (2013). Fuel Subsidy in Nigeria–Public Perception on Newspaper Reportage. Retrieved from http://www.gistarea.com.
- Lagos Chamber of Commerce and industry (2012). Lists adverse effects of subsidy removal. Retrieved from http://sweetcrudereports.com
- Madueme, I. S. (2010). Fundamental Rules in Social Science Research Methodology. Nsukka: Jolyn Publishers.
- McCombs, L.E. and Shaw, D. L. (1972). The Agenda-Setting Function of Mass Media The Public Opinion Quarterly. 36, (2), 176-187
