SUBSIDY REINVESTMENT AND EMPOWERMENT PROGRAMME (SURE–P). THE AKWA IBOM STATE EXAMPLE
ABSTRACTThe purpose of this research work was to examine the impact of sure – programme with Akwa Ibom State as the case study or example. To achieve this purpose, ten research questions were formulated to guide the study. Each of the questions were analyzed using simple percentage scoring method. The population of the study was three thousand and thirteen (3013). The research method adopted for this study was sampling survey method. The instrument used for the data collection was questionnaire. Simple percentage scoring method was employed in analyzing the data collected for the study. The result of the analysis revealed that sure-p programme create employment for the Nigerian masses, especially the youth in Akwa Ibom and it should be encouraged and continue with. Based on this findings, it was recommended that government should continue with the programme as this will help to stop the government ends up subsidizing consumption of petroleum products in neighbouring countries. It was also recommended that government should set in motion monitoring team to go round all the states and local governments to see if the rationale for establishing programmes are fully implemented. TABLE OF CONTENTSTitle Page - - - - - - - - iCertification - - - - - - - - iiDeclaration - - - - - - - - iiiDedication - - - - - - - - ivAcknowledgement - - - - - - - vTable of Contents - - - - - - - viAbstract - - - - - - - - - viiiSECTION ONE: INTRODUCTION 1.1 Background of the Study - - - - - 11.2 Statement of the Problem - - - - - 41.3 Research Questions / Hypothesis - - - - 51.4 Objectives of the Study - - - - - 71.5 Significance of the Study - - - - - 71.6 Scope / Limitation of the Study - - - - 81.7 Organization of the Study - - - - - 91.8 Definition of Terms - - - - - 10
SECTION TWO: LITERATURE REVIEW AND THEORETICAL FRAMEWORK 2.1 Literature Review - - - - - - 112.2 Theoretical Framework - - - - - 32SECTION THREE: METHODOLOGY OF THE STUDY 3.1 Research Method - - - - - - 393.2 Description of the Study Area / Phenomena - - 393.3 Population of the Study - - - - - 463.4 Sample of the Study - - - - - - 463.5 Research Instrument Description and Usage - - 473.6 Method of Data Collection - - - - - 483.7 Method of Data Analysis - - - - - 48SECTION FOUR: SUMMARY, CONCLUSION AND RECOMMENDATION 4.1 Summary - - - - - - - - 594.2 Conclusion - - - - - - - 614.3 Recommendation - - - - - - 63Bibliography Appendix
SECTION ONE INTRODUCTION1.1 BACKGROUND OF SURE – PThe reduction of fuel subsidy by the federal government on January 2012, as a deliberate policy aimed at conserving and maximizing the oil wealth of Nigeria, generated caries of discontent, fear and worry amongst Nigerians which led to a national strike. In response to the cries of Nigerian’s, the president announced the subsidy reinvestment and empowerment programme (Sure – P) to reinvest the federal government’s share of the savings arising from the reduction of subsidies on petroleum products into programmes and initiatives that would go a long way to ease the pain of subsidy removal and create a better life for Nigerians.Sure – P programme therefore ensures that the federal government’s part of the savings from the fuel subsidy removal or reduction is applied on critical infrastructure projects and social safety-net programmes that will directly ameliorate the sufferings of Nigerians and mitigate the impact of subsidy removal; with the following as the official strategic rationale for discontinuing subsidies on petroleum products. The current subsidy regime in which fixed price is maintain irrespective of market realities has resulted in a huge unsustainable subsidy burden. Fuel subsidies so not reach the intended beneficiaries. Subsidy level directly correlated with household income as richer household consume larger quantities of petroleum products. Consequently, the subsidy benefits the rich mostly. Subsidy administration is beset with in efficiencies, leakages and corruption. Subsidy has resulted in the diversion of scarce public resources away from investment in critical infrastructure, while putting pressure on government resources. Subsidy has discouraged competition and stifled private investment in the downstream sector. Due to lack of deregulation, investors have shied away from investment in the development of refineries, petro-chemical, fertilizer plant etc. It is important to note, since the year 2000, the government has issued 20 licenses for new refineries, none of which have resulted in construction of new refineries. The deregulation of the downstream sector of the petroleum industry will lead to rapid private sector investment in refineries and petrochemicals, which will generate millions of jobs and lead to increased prosperity for our people. Huge price disparity has encouraged smuggling of petroleum products across the borders to neighboring countries, where prices are much higher. Nigeria therefore ends up subsidizing consumption of petroleum products in neighboring countries.1.2 STATEMENT OF THE PROBLEMFrom Nigeria’s fuel subsidy to SURE-P replacing one failed system with another Nigeria’s subsidy Reinvestment and Empowerment Programme look to have become yet another source mismanagement and inefficiency.At the start of 2012, mass protests-tagged “Occupy Nigeria” broke-out across the country as thousands took to the streets to demonstrate against the government’s sudden removal of fuel subsidies. Overnight, the cost of following days, Nigeria began witnessing its biggest act of civil disobedience since the return to multiparty election in 1999.The government claimed that the subsidy removal was necessary to end the vast corruption that is taking place under the subsidy regime and promised to reinvest the saved money into infrastructure, health and education.But with the cost of living abruptly surging and many Nigerians seeing changes fuel as the only benefit that trickled down to them from the country’s enormous oil wealth, protests continued and the government had to soften its stance.The government reintroduced a partial subsidy and set-up a fund into which the saved money from the partial subsidy removed would be funneled. This fund was called the subsidy Reinvestment and Empowerment Programme (SURE-P) and it was charged with using the subsidy savings to invest in infrastructural projects and social empowerment initiatives that, in theory would benefit all Nigerians.1.3 RESEARCH QUESTIONS/HYPOTHESISRESEARCH QUESTIONSA. Is the Federal Government neutral in the disbursement of SURE-P funds?B. Is the SURE-P fully implemented accordingly to specification?C. Is there any positive impact of SURE-P on the lives of Akwa Ibom State Citizens?D. Is there any reduction of infant and maternal mortality rate in Akwa Ibom State, through the introduction of maternal and child health (MCH) program?E. Does SURE-P encourage competition in the petroleum downstream sector?F. Is the reduction of fuel subsidy by the Federal government a deliberate policy aimed at conserving and maximizing the oil wealth of Nigeria?G. Is there any problem of irregular payment of monthly stipends to the beneficiaries?HYPOTHESISHi: Sure-p has positive impact on the lives of Akwa Ibomite. Hi: Sure-p lay a foundation for a successful social safety-net program in Akwa Ibom State. Hi: Sure-p creates employment opportunities to Nigerian youths and women. 1.4 OBJECTIVES OF THE STUDY The objectives of this study is to;A. To ascertain if SURE-P is working in Akwa Ibom State.B. To assertain best measures that can be adopted in the use of the implementation strategies of the SURE-P to ameliorate unemployment malaise is Akwa Ibom State. C. To assertain how neutral the Federal Government is, in the disbursement of SURE-P funds.D. To assertain if monthly payment to participants is paid as at when due E. To assertain if the SURE-P programme is fully implemented according to specification.1.5 SIGNIFICANCE OF THE STUDYA. This research will help the federal government of Nigeria, Akwa Ibom government, organizations as well as individuals in assessing the impact of SURE-P programme in human capital development in Akwa Ibom State.B. The research findings would also help policy makers and management consultants to adopt adequate strategies in human capital development.C. It will help Akwa Ibom State government and local government commission in particular to appreciate the importance of SURE-P programme.D. Finally, this study will guide the Akwa Ibom State government in appreciating the good work of SURE-P programme in the state.1.6 SCOPE/LIMITATION OF THE STUDY The researcher is aware of the existence of other agencies that train human resources in Nigeria. It is outside the focus of this study to research other agencies. The main focus of this study is to assess SURE-P in Akwa Ibom State.The geographical coverage of the study is Akwa Ibom State. Akwa Ibom State is one of the 36 states in Nigeria and has 31 local governments. It is located south-south of the country.Every human activity has its inherent weakness and strengths. As a result this study has its own boundary of limitations. Finance, time, lack of adequate co-operation from the respondents and logistics where some of the problem the researcher faced in the study.Consequently, it is obvious that the researcher has some problems limitations during this research work which none is considered as serious as to affect its validity. 1.7 ORGANIZATION OF THE STUDYSection one revolves around introduction, background of the study. Statement of the problem, Research Questions/Hypothesis, Objectives of the study, Significance of the study, Scope/Limitation of the study, Organization of the study and Definition of terms.Section two deals with Literature Review and Theoretical Framework.Section three revolves around Methodology of the study, Research Method, Description of the study, Area/Phenomena, Population of the study, Sample of the study, research Instrument, Description and usage, Method of Data Collection and Method of data Analysis.Finally, Section four revolves around Summary, Conclusion and Recommendations.1.8 DEFINITION OF TERMSIt has become necessary to define certain concepts, term and acronyms used in this project in order to gained ear audience on what I use these terms for in this project.A. SURE-P: Subsidy re-investment and Empowerment Programme.D. FUNNELLED: Is a channel by which money or resources is send to somewhere..