EMPIRICAL ANALYSIS OF PROBLEMS OF PETROLEUM PRODUCTS DISTRIBUTION IN NIGERIA
(A CASE STUDY OF KADUNA REFINNING AND PETROCHEMICAL COMPANY)
COMPLETE PROJECT MATERIAL COST 3000 NAIRA
Account Name : Chi E-Concept Int’l
ACCOUNT NUMBER: 0115939447
Account Name: Chi E-Concept Int’l
Account Name: 3059320631
We also accept : ATM transfer , online money transfer
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
Call Help Desk Line : 08074466939,08063386834.
After Payment Send Your Payment Details To
08074466939 Or 08063386834, The Project Title You Selected On Our Website , Amount Paid, Depositor Name, Your Email Address, Payment Date. You Will Receive Your Material In Less Than 1 Hour Once We Confirm Your Payment.
WE HAVE SECURITY IN OUR BUSINESS.
MONEY BACK GUARANTEE
You may also need: web design company in Nigeria
CHAPTER ONE: INTRODUCTION
- Background to the Study – – – – – – – 1
1.2 Statement of the Problem – – – – – – – 3
1.3 Research Questions – – – – – – – – 4
1.4 Objectives of the Study – – – – – – – 4
1.5 Statement of Hypotheses – – – – – – – 4
1.6 Significance of the Study – – – – – – – 5
1.7 Scope of the Study – – – – – – – – 5
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction – – – – – – – – – 6
2.2 Conceptual Framework – – – – – – – 6
2.3 Overview of the Conditions of Nigeria Refineries – – – – 18
2.4 The Actual Total Capacities of the Refineries and the Depots – – 23
2.5 Factors Militating against Petroleum Distribution in Nigeria – – – 26
2.6 Theoretical Framework – – – – – – – 35
2.7 Review of Empirical Literatures – – – – – – 43
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction – – – – – – – – – 48
3.2 Research Design – – – – – – – – 48
3.3 Area of Study – – – – – – – – – 48
3.4 Population and Sampling Technique – – – – – 48
3.5 Methods of Data Collection – – – – – – – 49
3.6 Methods of Data Analysis – – – – – – – 49
3.7 Summary – – – – – – – – – 50
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction – – – – – – – – – 51
4.2 Respondent Characteristics – – – – – – – 51
4.3 Data Presentation and Analysis – – – – – – 52
4.4 Test of Hypothesis – – – – – – – – 54
4.5 Summary of Findings – – – – – – – – 56
CHAPTER FIVE: SUMMARY CONCLUSION AND RECOMMENDATION
5.1 Summary – – – – – – – – – 57
5.2 Conclusion – – – – – – – – – 57
5.3 Recommendations – – – – – – – – 58
Bibliography – – – – – – – – – 60
Appendix I – – – – – – – – – 68
Appendix II – – – – – – – – – 69
The study assessed the Problem of Petroleum Product Distribution in Nigeria. As such, the research questions that guided this study are: What are the constraints militating against Nigeria’s state owned refineries and petrochemical plants as well as affiliated regulatory agencies in Petroleum product distribution? What are the problems associated with the distribution of petroleum product in the downstream sector? 120 respondents were selected using the random sampling technique to select 50 independent petroleum product marketers, 50 staff from PPMC and 20 staff from NNPC and 20 staff from NNPC. The mean (X) was used to analyze the data while chi-square was used to test the hypotheses.
The analysis shows that the frequent pipeline vandalization, poor maintenance of petroleum infrastructure, as well as Inefficiency and Corruption of government officials and under-utilization of Refineries by NNPC are the main constraint militating against Nigeria’s state-owned refineries and petrochemicals plants as well as affiliated regulatory agencies in petroleum product distribution.
Diversion of petroleum products, hoarding of petroleum products, the use of old tankers that are in a poor state of operation and poor state of road in Nigeria, sabotage, crude oil and petroleum product bunkering, petroleum product adulterations are some of the challenges militating against petroleum product distribution from the side of major and independent marketers of petroleum product.
As such, it was recommended that the Nigerian National Petroleum Corporation (NNPC) should diversify its export/output baskets through adequate downstream activities. This will enhance self-sufficient in petroleum products and economic growth. Nigeria’s fuel shortages can never be solved by importing more fuel. Importing fuel is a temporary (short term) solution. Building more refineries in Nigeria to meet our domestic consumption and possibly export to neighboring countries; undoubtedly is a sure solution to Nigeria’s perennial fuel shortages.
1.1 Background to the Study
The Nigerian petroleum industry has been described as the largest among all industries in the country. This is probably due to the belief that petroleum is one of the major sources of energy worldwide. The size, international characteristic, and role assumed by the petroleum industry were noted to have originated from the notion that petroleum is versatile as it currently satisfies a wide variety of energy and related needs. Petroleum is the most vital source of energy, providing over 50 percent of all commercial energy consumption in the world. The revenues obtained from crude oil in Nigeria are of absolute advantage to expenditure commitments on various projects at the local, state, and federal levels. The Nigerian economy relies heavily on the revenue derived from Petroleum products, as they provide 70 percent of government revenue and about 95 percent of foreign exchange earning. Apart from this, the contribution of petroleum to national development is many and varied; employment generation, foreign exchange earnings, income generation, industrialisation, and improvements in other economic variables.
The Nigerian economy is starkly dominated by the petroleum industry since the oil boom of the 1970s. Therefore, its economic growth and development also is dependents on the production and consumption of Petroleum product and hence, a close connection between the state and oil in Nigeria (Okunroumu, 2004; and Falegan & Okah, 1980). For instance, Wurthmann (2006) noted that oil accounts for about 40 per cent of Nigeria’s GDP, 70 per cent of federal government revenue and 92 per cent of its foreign exchange earnings. Also, daily domestic demand for Petroleum products stands at 530,000 barrels per day (bpd) which is 85,000 bpd more than the never-made 445,000 bpd installed refining capacity. As a result, Petroleum products supply remains an acid test for successive governments in Nigeria. With the inception of democracy in May 29th, 1999, the supply of Petroleum products has improved but not without a price – frequent increases in Petroleum products price yet demand of Petroleum product is still higher than supply (Sabo and Igwo, 2007:105).
As a result people clamor for deregulation of Petroleum product. In Nigeria, the 2003 deregulation of the sector is expected to give room for competition and maximize supply sources which would transform to price reduction and deflate scarcity. Prior to this moment, attempts were made to invite private firms into the sector, most of whom, including NNPC itself, sought for the importation of Petroleum products instead.
Yet still fell out due to regulated domestic prices and a whooping amount as subsidy to the consumers (Nwafor, M. et al, 2006:11). The private investors were also not willing to take over the dilapidated, disrepair, and poorly performing state owned facilities (refineries, depots and pipeline system). Thus, the sector is so plagued by, not only, low capacity utilization of the midstream sector, inadequate distribution (pipeline, rail and road) networks and storage facilities, products diversion and adulteration, black-marketing, fire incidents, smuggling as well as inefficient monopolistic/state control on prices (Oriyoosu, 2007:113-115
Hence petroleum distribution is constraint by issues arising from poor maintenance of facilities and infrastructure by government; products adulteration and pipeline vandalization; low investment opportunities; sabotage by cartels, large-scale smuggling of crude and refined oil as well as the importation of Petroleum products.); rampant black markets, e.t.c. due to inefficient market structure caused by the monopolistic control of the state on price (Oriyoosu, 2007:113-115).
As a result widespread Petroleum products shortage and unending price hikes are the daily reports bringing untold hardship to the rapid growing Nigerian populace. Therefore, the low Petroleum products from local refineries, inadequacy of Petroleum products importation at international prices, and particularly, inefficiency of domestic prices of Petroleum products set by the state and numerous constraint that have not yet being discovered by previous researches, stand out as the fore setbacks to petroleum distribution in Nigeria. It is against this background that this study is triggered.
1.2 Statement of the Problem
Many research efforts in the area of petroleum distribution in Nigeria have dealt with macro issues, as well as conduct and performance of marketing activities as they relate to performance indices such as market share, growth, efficiency and well being of consumers and clients. However there are few researches on the problems of petroleum distribution in Nigeria (Okoh,2012).
Hence the problem of this study is to analyze the problem of petroleum distribution in Nigeria by investigating factor militating against Petroleum product distribution from government refineries as well as from the side of major and independent marketers. In this regard the research is focused on issues of sabotage of petroleum infrastructures and illegal bunkering as well as problem of ineffective regulation of Petroleum product in the downstream sector and inefficient utilization and maintenance of Nigeria’s state-owned refineries and
This article highlights various college of education, polytechnics, universities website in Nigeria.
State college of education
College of Education, Ikere,
Private college of education in Nigeria
Best Legacy College of Education, Ikirun,
College of Education, Foreign Links Campus Moro,
List of Federal Universities in Nigeria
Bayero University, Kano,
University of Nigeria Nsukka,
List of State Universities in Nigeria admission list
Kwara State University, Ilorin, .
Gregory University, Uturu,
Veritas University, .
List of all the Federal Polytechnics in Nigeria
Federal Polytechnic, Ede, Osun State,
List of State Polytechnics in Nigeria
List of Private Polytechnics in Nigeria