Management Problems Of Petroleum Products In Nigeria (A
Case Study Of Pipeline And Product Marketing Company
Enugu)
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LIST OF TABLE
Sex distribution
Marital status
Age distribution
Educational level
The vandalization of pipeline affects distribution of petroleum products.
Deregulation products Partial computerization affects the pipeline and product
marketing company.
Bureaucratic delay in marketing level affect the pipeline and product marketing
company.
Lack of management skill hinder the efficient distribution of petroleum
products Small profit margin affect the sales of petroleum products Petroleum
products marketers indulge in adulteration Poor condition of road network
cause accident for petroleum tankers
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TABLE OF CONTENT
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of content
List of figure
CHAPTER ONE
1.0
Introduction
1.1
Background
1.2
Statement of problem
1.3
Purpose of study
1.4
Research Question
1.5
Significant of study
1.6
Scope of study
3
CHAPTER TWO
2.0
History of petroleum in Nigeria
2.1
Historical background of pipelines and products marketing company.
2.2
Allocation of petroleum products.
2.3
Accountability payment
2.4
Petroleum products Ex – Depot price
2.5
Loading process
2.6
Mode of distribution
2.7
Pipeline system
2.8
Road system
2.9
By Rail
2.10 Sales / marketing operation
2.11 Customer’s services
2.12 Participant in the oil industry
2.13 The Nigeria National Petroleum Co operation (NNPC)
2.14 Pipeline and product marketing company (PPMC)
2.15 Marketers
2.16 Transporters
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2.17 The retailer
2.18 Department of petroleum resource (DPR)
2.19 Department of weight and measure
2.20 Task force one petroleum products
2.21 Summary of related literature.
CHAPTER THREE
3.0
Research methodology
3.1
Research Design
3.2
Area of study
3.3
Population of study
3.4
Population sample technique
3.5
Instrument for data collection
3.6
Validity and reliability of instrument
3.7
Method of data collection
3.8
Method of data analysis
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CHAPTER FOUR
4.0
Data presentation and analysis
4.1
Data presentation and analysis
CHAPTER FIVE
5.0
Discussion, summary and conclusion
5.1
Discussion of findings
5.2
Recommendation
5.3
Suggestion for further study
Conclusion
Limitation of the study
Reference
Appendix
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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
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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
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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
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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.
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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
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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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