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PROJECT AIM
FEASIBILITY ANALYSIS OF FUEL:The objective of the project is to give a detailed analysis regarding the investment opportunity for starting a fuel dispenser business in Nigeria.
INTRODUCTION
Petroleum products are the most valuable natural resources that are abundantly available in Nigeria. The citizens of Nigeria excessively use automobiles, generators and have industrial setups that require tons of petroleum. Further, it is used for processing and manufacturing of other petrol products. Nigeria is an oil-producing country, however, it imports heavy amounts of petroleum. Products of petroleum include Petrol, Diesel, Kerosene and other essential products that are required for daily use.
Critical success factors
- The project location plays a pivotal role in its success and daily turnover.
- The selection and use of proper equipment in running fueling operations.
Opportunities
The fuel dispensing project will increase the use of fuel, fulfil customer’s demands of fuel, solve scarcity, and minimize the cost. Secondly, Asaba will be chosen as a commercial location, which is near to the hub of Nigeria thus provides good location and high amount of heavy vehicular movement.
Economic & Political Factors Affecting the Business
Despite Nigeria is known as the fifth-largest oil producer in the world, still, it imports most of the fuel and faces a severe shortage.
Production of fuel is not enough; a country needs to meet consumer demand. As estimated 50% of the fuel is imported by national oil companies and the rest by the private fuel distributors. The companies tried to cut down on oil imports, which led to fuel shortages in the country. The BBC reported that the majority there are three reasons for such crises.
The Nigerian government is tremendously making efforts to reduce their debts. They tried to pay for the fuel subsidies, which is highly expensive due to the inflated prices of oil. The last government left Nigeria in a severe debt situation, which led companies to import the extensive amount of fuel……………………………………..
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