EMPIRICAL ANALYSIS OF PROBLEMS OF PETROLEUM PRODUCTS DISTRIBUTION IN NIGERIA (A CASE STUDY OF KADUNA REFINING AND PETROCHEMICAL COMPANY)

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.
TABLE OF CONTENTS Title Page  Declaration  Certification  Dedication  Acknowledgment  Table of Contents  Abstract 
CHAPTER ONE: INTRODUCTION 1.1 Background to the Study  1.2 Statement of the Problem  1.3 Research Questions  1.4 Objectives of the Study  1.5 Statement of Hypotheses  1.6 Significance of the Study  1.7 Scope of the Study 
CHAPTER TWO: LITERATURE REVIEW 2.1 Introduction 2.2 Conceptual Framework  2.3 Overview of the Conditions of Nigeria Refineries  2.4  The Actual Total Capacities of the Refineries and the Depots  2.5 Factors Militating against Petroleum Distribution in Nigeria  2.6 Theoretical Framework  2.7 Review of Empirical Literatures   CHAPTER THREE: RESEARCH METHODOLOGY 3.1 Introduction  3.2 Research Design  3.3 Area of Study  3.4 Population and Sampling Technique   3.5 Methods of Data Collection  3.6 Methods of Data Analysis  3.7 Summary
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS 4.1 Introduction  4.2 Respondent Characteristics  4.3 Data Presentation and Analysis  4.4 Test of Hypothesis  4.5 Summary of Findings 
CHAPTER FIVE: SUMMARY CONCLUSION AND RECOMMENDATION 5.1 Summary 5.2 Conclusion 5.3 Recommendations  Bibliography  Appendix I  Appendix II