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.