Describe any five problems of distribution in Nigeria.

Assessment: WAEC SSCE - Economics - 1997 (Essay) Subject: Economics

Question 1 Report

Describe any five problems of distribution in Nigeria. 
 

Answer Details

Distribution is the movement of goods and services from producers to final consumers. In Nigeria this process faces several problems:

  1. Poor transport infrastructure: bad roads, inadequate railways and congested ports delay the movement of goods, raise transport costs and cause perishable produce to spoil before reaching the market.
  2. Inadequate storage facilities: shortage of warehouses, silos and cold-storage means farm produce is wasted, and goods cannot be held to smooth supply over time.
  3. Too many middlemen: a long chain of wholesalers, retailers and agents each add a margin, so the final price to the consumer becomes high while producers earn little.
  4. Insecurity: armed robbery, banditry and communal conflicts along trade routes discourage the free movement of goods and increase costs through losses and higher insurance.
  5. Shortage of capital and credit: many traders lack funds to buy in bulk, hold stock or expand, limiting the volume and efficiency of distribution.
  6. Poor communication and market information: traders often do not know where goods are scarce or plentiful, leading to gluts in some areas and shortages in others.

Any five of the above, each clearly explained, gives a complete answer.

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