NAVIGATING NIGERIA'S FUEL CRISIS: BUSINESS CONTINUITY INSIGHTS FROM SELECTED INDUSTRIES IN NIGERIA

Abstract

Nigeria, Africa's most prominent fuel-exporting nation, frequently experiences fuel crises that disrupt the seamless operation of regular economic activity. The nation possesses sufficient crude oil reserves but has limited refining capacity, exacerbated by unpredictable policies, outdated infrastructure, and economic challenges. This has culminated in a fuel crisis that hounds business undertakings that rely on fuel for transportation, machinery, and power in their production line. This paper assessed how the Nigerian fuel situation affects business operations using the transportation, manufacturing, and agricultural sectors as a case study in Lagos State. A self-developed structured questionnaire was administered to a sample of 1152 respondents from a balanced selection of businesses in these sectors, selected from a population of 3000 persons. With reference to Leslie Kish's formula, the sample size was established, and the respondents were selected using a random technique to enhance the generalizability of the study findings. The study's findings, derived from data analysis, provide insight into the overall effects of the crisis on operational vulnerability, indicating that fuel crisis, characterized by fuel price fluctuations, substandard fuel, and scarcity, adversely affects business continuity, with some businesses shutting down. Consequently, the findings offer significant advice for government, policymakers, and business experts seeking to mitigate the impact of the fuel crisis on business continuity. Therefore, the Nigerian government must establish a long-term fuel stock pipeline with reasonable and affordable pricing to ensure fuel reserve so businesses are not overstretched during scarcity or any other hardship due to fuel subsidy removal. Also, to eliminate the widespread use of subpar fuel—which has a negative impact on machinery, production prices, operations, and other corporate matters—the government should likewise guarantee high-quality delivery.

Keywords: fuel crisis, fuel price fluctuations, substandard fuel, fuel scarcity, business continuity