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MANAGEMENT PROBLEMS OF PETROLEUM PRODUCTS IN NIGERIA

ABSTRACT

This project or research work as investigated the management problems of petroleum products in Nigeria ( A case study of PPMC Enugu Depot) which is located in Enugu East Local Government Area of Enugu State. The major objective of this project or research was to find out those management problems of petroleum products in Nigeria. To accomplish the above objective, therefore the work or project has to be decided into five chapters. The first chapter introduces them. It points out the background of the study and scope. While chapter two reviews, the related literature and the definitions. However chapter three constitutes the main body of the project. There, also highlighted on the methodology which comprise, area of study, population of study, sample technique, instrument for data collection, validity and reliability of the instrument. In chapter four, it deals on data presentation and analysis and how the respondents assured their question as show in the table and pie chart. Thereafter, chapter five summaries all the write – up by way of findings, recommendation, limitation of study, suggestion for further study and conclusion. Finally, is the reference as it concerns this project?

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

According to Harold Koontz and Heinz Weichuch in their book "Management" (ninth edition). They stipulated that management as the process of designing and maintaining an environment in which individuals, working together in groups accomplish efficiently selected aims. According to Kotler in his book. "The principles of marketing" a marketing distribution channel is a set of firms and individuals that take title or assist in transferring title to the particular goods and services as it moves from the producers to the consumers. Petroleum product was first introduce into the Nigeria in 1907 by Mobil. In 1957 crude oil from which petroleum products are refined was found in commercial quantities of Nigeria. Between 1908 and 1973, most of the white product i.e. Gasoline or petrol, Aviation Turbine kerosene (ATK), Household kerosene (HHK) and Gas oil commonly called Diesel were widely marketed by many multinationals like Shell, Texaco, ESSO, British petroleum etc. In 1965 British petroleum and shell established the first refinery in Nigeria. The 35,000 barrels per day refinery was located at Port Harcourt. During this period, crude oil production and petroleum product sales had became so significant to Nigerian economy in 1971, the federal government decided to actively participate in the oil business. The decree establishing the Nigeria national oil corporation (NNOC) was promulgated. The same year, Nigeria joined the organization of the petroleum exporting countries (OPEC). In 1973 the federal government also introduced the uniform price of petroleum products throughout the nation. The petroleum equalization fund brand was established to manage the fund.

However, between 1974 to 1976, Nigeria began to experience shortage for the first time. A research was made and it was discovered that the problems was that of both supply and distribution. It was also identified that tremendous growth had taken place in demand of all petroleum products. It was also identified that the cheapest and most efficient way of transporting large volume products i.e. liquids is by pipeline. Therefore government mandated the NNOC to commence the construction of a network of pipeline and two (2) refineries, one at Warri and one at Kaduna to ensure adequate supply of products throughout the nation. By 1978 after commissing of Warri refinery and the completion of the southern pipelines. The Nigeria National Petroleum Corporation (NNPC) the successor to NNOC took over the supply and distribution of all petroleum products. By 1980 Kaduna Refinery was commissioned and the Northern products pipelines and depots began to operate. The function of supply and distribution of petroleum products in bulk was performed by various department in NNPC. PPMC Enugu Depot was located at Emene Nike Enugu and commissioned in the year 1979.

STATEMENT OF PROBLEMS

Inspite of the achievements and efforts, the (PPMC) pipeline and products marketing company is constrained by a number of problems. The problems recently encountered are. Contained encroachment on pipeline right of way.
Logistic problems of LPG distribution Unscheduled shutdown of the refineries which greatly limits products availability. Partial computerization, which retards the flow of information Difficulty experienced in establishing letters of credit offshore purchase of critical spare parts. Lack of prerequisites number of personnel.

PURPOSE OF THE STUDY

The purpose of the study includes the followings:

To identify problems of continued encroachment of pipeline right of way of PPMC

To examine how PPMC is taken adequate measure to have availability of their products.

To find out the extent partial computerization affects pipelines and products marketing company in Enugu

To ascertain the impact of bureaucratic delays in marketing level of pipeline and product marketing company in Enugu.

To educate management on the need for proper checking procedures by their workers.

RESEARCH QUESTIONS

To what extent does pipeline and product marketing company control the vandalization of pipelines.

To what extent does pipeline and product marketing company ensure the availability of their products?

To what extent does the partial computerization affects pipeline and product marketing company?

To what extent dose the bureaucratic delays in marketing level affect the pipeline and product marketing company?

To what extent does poor condition of our road network affect the distribution of petroleum products.

SIGNIFICANCE OF THE STUDY

The study will serve as a source of revenue to both PPMC and the dicers and also the government. The study will help to assist the management to provide adequate security to the pipelines. This will help the management to channel their distribution of the propriety channel.This will also help the management to inform the government about the problems of vandalization in the state. This study is significant because the researcher hopes that this will serve as a stepping stone for any future researchers especially those who would wish to.

SCOPE OF THE STUDY

The scope of the study, boarder on the management problems of petroleum product on Enugu state with particular reference to pipeline and product marketing company Emene Enugu.

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