ABSTRACT
The study on the problems and prospects of marketing
petroleum products in Nigeria seeks to find out what causes or generated
problems in the oil industry and tries to find a lasting solution to it for the
benefit of all the public or consumers. Data on this issue were collected
through survey (questionnaire schedules) and that serves as a primary source of
data to compliment the secondary materials. These data were analyzed and some
interesting revelations were made. It was discovered that frequent
vandalization of oil pipelines, hoarding of petroleum products, striking
workers and perennial power outage etc. contributed greatly to these problems.
It was also revealed that the independent marketers contributed immensely to
the marketing of petroleum products in the country considering the percentage
of Petroleum products such as PMS (super), DPK (Kero) and AGO (Diesel) that are
lifted through them to the consumers. The data revealed the important role,
they play in distributing products to areas, regarded as unattractive by
existing oil companies thereby reducing problems of artificial scarcity and
marketing of petroleum products. The study recommends that more refineries
should be built in the country to support the existing ones and locate them
well on the basis of economic consideration rather than political
considerations. Modern equipments should be installed at the refineries to
ensure optimum capacity utilisation. The NNPC should open supply depots for 24
hours daily and motivate their staff to work effectively. Loans should be
advance mate easily assessable to independent marketers to build more filling
stations at desired locations, constant power supply should be ensured in other
to facilitate a steady pumping, Loading and easy marketing of petroleum
products. Vandalization which is a menace to the government should be properly
checked and stopped by ensuring strictness and security at the oil producing
areas. The oil producing areas should be properly compensated and motivated to
ensure an end to vandalization.
TABLE OF CONTENTS
Title page……………………………………………………………………..
i
Declaration……………………………………………………………………..ii
Approval ……………………………………………………………………….iii
Dedication
...……………………………………………………………………iv
Acknowledgement…………………………………………………………… ..v
Abstract…………………………………………………………………………vi
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
………………………………………………… 1
1.2 Statement of the problems……………………………………………….. 2
1.3 Objectives of the study…………………………………………………… 2
1.4 Research Question
………………….…………………………………… 2
1.5 Research Hypothesis
…………………………………………………… 3
1.6 Significance of the study ……....………………………………………… 3
1.7 Scope of the Study
…..…………………………………………………… 5
CHAPTER TWO
LITERATURE REVIEW
2.1 Distribution of petroleum product………………………………………
8
2.2 Marketing mix………………………………………………………….. 9
2.3 Distribution system……………………………………………………..
14
2.4 Prospect and problems…………………………………………………. 15
2.5 Pricing policy of Matrix Matrix
Nigeria plc…………………………… 16
2.6Signification
of distribution in business organization…………………… 16
2.7
Historical Background of the Study (Matrix Nig Plc) …………………….17
2.8
Organizational Structure of Jigawa Matrix Nigeria Plc . …………………..19
2.9 Role of independent marketers …………………………………………..
23
2.10 Government relation with
independent marketers………………………..24
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction ………………………………………………………………25
3.2 Research design……………………………………………………………26
3.3 Population of the study
………………..………………………………….26
3.4 Sample size of the study
………………………………………………… 26
3.5 Source and Method of data collection
…………………………………… 26
3.6 Technique and data analysis
………………………………………………27
3.7 Justification of Method used
………………………………………………28
3.1 Summary ……….…………………………………………………………28
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Introduction
………………..……………………………………………... 29
4.2 Respondent bio-data
……………………………………………………… 29
4.3 Data analysis………………………………………………………………...33
4.4 Regression analysis …..
.…………………………………………………...33
4.5 Discussion of Finding
………………………………………………………37
CHAPTER FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATIONS
5.1 Summary …………………………………………………………………….
38
5.2 Conclusion ………………………………………………………………….. 39
5.3 Recommendations ……………………………………………………………39
References
Appendix
CHAPTER
ONE
1.0
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
A
research into the role of independent marketers in petroleum distribution in
Nigeria is to be associated with recent development in petroleum industry both
in terms of saving and distribution towards the economic development of the
country and increase its gross domestic product (GDP).
The
most significant event in Nigerian economy over the years has been the
development of oil products and natural gas. These two products in addition
being unimportant in foreign exchange earning has been making tremendous impact
in the economy by providing in reality available source of energy, the
refineries established in Kaduna, Warri and port-Harcourt. In addition to
supplying most of the countries requirement of refined petroleum products are
also expected to supply the export market with crude oil.
However,
in 1975/76 the federal commissioner of petroleum resources General Muhammad
Buhari who is now the current president of Nigeria introduced independent
marketers into the Nigerian petroleum
business activities into their outlet (filling station) in other to serve both
industrial and consumer markets and have indigenes of the country benefiting
and compete equally with major marketers. This effort of the government
provided employment to local human resource. Today a large number of Nigerians
are involved in the activities of petroleum product distribution and marketing
in Nigeria.
1.2 STATEMENT OF THE PETROLEUM
Despite
the pact that the independent petroleum marketing in Nigeria was conceived to
ensure that the refineries facilitate making petroleum products easily
accessible to the final consumer. Yet the activities of some refineries agent
like the middle men and existent of the so called black marketers leads to the
scarcity of commodity to meet the increased demand.
The
activities of the independent marketers some have much agency some time, due to
the government involvement through the regulatory agency. It is therefore, the
above enumerated problems affecting the activities of marketing and
distribution of petroleum as manifested through the in ability to achieve the
desired objectives and those factors clearly shows Lack of concentration in the
distribution system with a view to finding lasting solution to those problem
1.3
OBJECTIVES
OF THE STUDY
The
research work will provide independent petroleum marketers, major petroleum
marketing companies, Nigerian national petroleum company (NNPC), other stake
holders in the petroleum sector, government, students, consumers and other
Nigerians alike to have a clear, concise and through understand the nature,
problems as well as the prospects inherent in the marketing and proper
distribution of petroleum in Nigerian with a views of making some
recommendations that will turn around the good fortunes abound in the sector.
1.4 RESEARCH QUESTION
This
research intends to answer the following questions;
(a) In
your own opinion how do you see independent marketers of petroleum?
(b) Is
independent marketers relevant to economic development in Nigeria?
(c) Has
Presence of independent marketers have reduce the scarcity of petroleum in
Nigeria
(d) Is
their present capital adequate for expansions of their business?
(e) Was
it necessary to increase their capital in order to expand their business?
1.5 RESEARCH HYPOTHESIS
The
following hypothesis formed the basis for this research study. The hypothesis
shows the position or opinion of the researcher in this attempt to express the
subject of this research work.
Through,
these are subjective, their authenticity, validity or otherwise will be tested
in the process of the work.
1.
HA: the problems
of frequent power failure, inadequate storage facilities and transportation
hinder effective marketing of petroleum products.
HO: the problems of frequent power failure, inadequate storage facilities
and transportation does not
hinder effective marketing of petroleum products.
2. HA:
In adequate finance, uniform pricing impede proper making petroleum products to
final consumer.
HO:
In adequate finance, uniform pricing does not impede proper making petroleum
products to final consumer.
1.6
SIGNIFICANCE
OF THE STUDY
The
involvement of the major petroleum marketing companies and independent
petroleum marketers and other stake holders in the marketing and distribution
of petroleum products was conceived with the aim of among other things to
ensure the availability of petroleum products in every knock and crony of the
country, generate employment to many Nigerians, bring about increased foreign
exchange ensuring and growth of the economy. And provide additional literature
on the subject matter.
The
purpose and significance are:-
1) To
know the role of independent marketers in the distribution and marketing of
petroleum products in Nigeria.
2) To
examine the channel of distribution used in marketing of petroleum products.
3) To
find solution to some problems facing independent and major petroleum marketing
companies particularly in marketing and distribution of petroleum.
4) To
identify the problems in the marketing of petroleum products in an attempt to
determine the ways of solving such problems.
5) To
determine the effect of uniform pricing in the marketing of petroleum products.
6) The
work will further expose the researcher to problems militating against proper
distribution and marketing of petroleum products in Nigeria and possible ways
to ameliorate those problems.
7) For
the producer this study would educate them on their perception of end users of
petroleum products, pricing policy, effectiveness of the distribution network
and the need to maintain or improve their logistic of the products distribution
and marketing.
8) The
dealers and various oil companies through this study and findings would know
what customer want in terms of services offered and the availability of the
product as at when required.
9) Finally,
this study would encourage the use and application of marketing research as a
tool for business decision making.
1.7
SCOPE
AND LIMITATION OF THE STUDY
The
term “petroleum product” is genuine and so wide that a study embracing all the
petroleum product would extend beyond the scope of this work in terms of time,
financial involvement and technical expertise required.
According
to Cassidy (1954), there are about two thousand six hundred. (2,600) petroleum
products, therefore, considering this wide range of products, this work will be
delimited and restricted mainly to problems facing petroleum product marketing
in Nigeria. The choice of these product is based on how the domestic economic
life of the country is controlled basically by this product.
Therefore,
the scope and limitation of this study are:
1) To
find out the relationship between the government and the independent marketers
and major petroleum marketing companies.
2) To
identify the problems of marketing and distribution of petroleum and possible
ways of solving the problems.
3) An
independent marketers bridge the gap between the producer and the customers.
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