Describe any five problems of distribution in Nigeria.

Explanation

Problems of distribution in Nigeria are:

(I) Inadequate infrastructural facilities: Facilities like electricity, telecommunication are not adequate.

(ii) Inadequate storage facilities/warehouse: This especially affects perishable products which come seasonally. During harvests, there is excess supply of these products, but there is scarcity as soon as the excess is over.

(iii) Hoarding and speculation in Nigeria:The traders can create artificial scarcity for some commodities especially during festive periods such as Christmas and Ramadan. Artificial scar-city can also occur as a result of change in government policies. This disrupts the distributive process and increases prices unnecessarily.

(iv) Packaging problems:The packaging of goods is not standardized. This may result in damage or loss in transit.

(v) Inadequate transport facilities: The poor transport system also affects commodity distribution and marketing in the country. The roads are so bad that commodities sustain great damage due to accidents.

(vi) Long chain of distribution:There are too many middlemen. The numerous links along the chain of distribution make the price of commodities to increase considerably.

(vii) Insecurity on Nigerian roads: Distribution is affected as a result of the activities of armed bandits on the road.

(viii) Administrative bottle-necks in the collection and handling of goods: Excessive delay in the supply and delivery of commodities is a common feature in the Nigerian distribution system. Processing of necessary papers at supply point or depots causes considerable loss of time.