MPIRICAL ANALYSIS OF PROBLEMS OF PETROLEUM PRODUCTS DISTRIBUTION IN NIGERIA (A CASE STUDY OF KADUNA REFINNING AND PETROCHEMICAL COMPANY)
ATTENTION:
BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW,
PLEASE READ THE INFORMATION BELOW.THANK YOU!
INFORMATION:
YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL
PROJECT COSTS N5,000 ONLY. THE FULL INFORMATION ON HOW TO PAY AND GET THE
COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN CALL: 08068231953,
08168759420
EMPIRICAL ANALYSIS OF PROBLEMS OF PETROLEUM PRODUCTS DISTRIBUTION IN
NIGERIA
(A CASE STUDY OF KADUNA REFINNING AND PETROCHEMICAL COMPANY)
TABLE OF CONTENTS
Title Page - - - - - - - - - - i
Declaration - - - - - - - - - - ii
Certification - - - - - - - - - - iii
Dedication - - - - - - - - - - iv
Acknowledgment - - - - - - - - - v
Table of Contents - - - - - - - - -
vi
Abstract - - - - - - - - - - vii
CHAPTER
ONE: INTRODUCTION
1.1
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
ABSTRACT
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.
CHAPTER
ONE
INTRODUCTION
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 petrochemicals plants in Nigeria
and the institutionalised corruption of government officials and independent
marketers in charge of Petroleum product distribution.
1.3 Research
Questions
i) What
are the constraint militating against Nigeria’s
state-owned refineries and petrochemicals plants as well as affiliated regulatory
agencies in Petroleum product distribution?
ii) What are the problems associated with the distribution of Petroleum
product in the downstream sector?
1.4 Objectives of the Study
The central objective of the studies is to examine the problem of petroleum
distribution in Nigeria. The specific objective are:
i.
To
identify the factors militating against Nigeria’s
state-owned refineries and
petrochemicals plants in
Petroleum product distribution.
ii.
To find out the problems associated with
the distribution of Petroleum product in
the downstream sector.
1.5 Statement of Hypotheses
To give this work a sense of direction, the following pairs of hypotheses
have been considered:
1.
H0:
Petroleum product distribution in Nigeria’s state-owned
refineries and petrochemicals plants is not hampered by pipeline sabotage and illegal
bunkering as well as institutionalised corruption of government officials.
H1: Petroleum product distribution in Nigeria’s state-owned refineries and petrochemicals plants is hampered by pipeline sabotage and illegal
bunkering as well as institutionalised corruption of government officials.
2.
H0: Petroleum
product distribution in the downstream sector is not associated with hoarding
and diversion of Petroleum products by major and independent
marketers.
H1: Petroleum product distribution in
the down stream sector is constraint with the problem of hoarding and diversion
of Petroleum products by major and
independent marketers
1.6 Significance of the Study
This study is of great relevance to the Pipeline and Product Marketing
Company (PPMC), petroleum marketers and consumer. This relevance applies to
researchers and scholars of Petroleum products and its distribution process.
The Federal Government is likewise a beneficiary of this study as they will be
aware of the cancer eating up the distribution process and a better approach to
tackling it.
Finally, this study is of great relevance to the general public as they
are enlightened on the process of distribution and also the dangers associated
with the disruptions of the smooth flow of these products pipelines.
1.7 Scope of the Study
The study covers the Country's Pipelines and Product Marketing Company's
network nationwide. The period covered is from 2006 – 2011.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you
will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#5,000) into our bank Account
below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are
good online businesses in Nigeria.
But on this site, we have provided “table of content and chapter
one” of all our project topics and materials in order to convince you that we
have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank
Account contains all information about the owner of this website. For your own
security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment,
because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website
WORD-TO-WORD. These materials are to assist, direct you during your
project. Study the materials carefully and use the information in them to
develop your own new copy. Copying these materials word-to-word is CHEATING/
ILLEGAL because it affects Educational standard, and we will not be held
responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy
word-to-word.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
AFFILIATE LINKS:
myeasyproject.com.ng
easyprojectmaterials.com
easyprojectmaterials.net.ng
easyprojectsmaterials.net.ng
easyprojectsmaterial.net.ng
easyprojectmaterial.net.ng
projectmaterials.com.ng
googleprojectsng.blogspot.com
myprojectsng.blogspot.com.ng
https://projectmaterialsng.blogspot.com.ng/
Comments
Post a Comment