This research was motivated to appraise the evaluation of
distribution channel in the logistics management of petroleum product using
Oando plc as the case study. There was a problem of the tendency of
distribution of those petroleum products to the Northern & Southern which
effect to a scarcity of the product in other areas of the country. On the
contrary to the problems of this research work, an objective came to be as to
ascertain whether there is an effective and efficient distribution of petroleum
products, all round the country.
In the process of solving and pursuance on the problems and the
objectives, both primary and secondary data were sourced. The targeted
respondents were mainly the managers, staffs and customers were statistically
determined for the purpose of both questionnaires administration and personal
interview. In organizing and presentation of data collected, tables and
percentages were used and various hypothesis were tested using
chi-square. The tests of the hypothesis made the researcher to concluded
that Oando plc cannot improve on the distribution channel in the logistics
management of petroleum product in our country, as the critical value was
greater than the expected value on both tests.
5-99 > 1.2481 & 1.8838 < 5.99
The study reviews some finds which made the researcher to
recommended that government should set some security agencies that can militate
against perpetrator that vandalize the pipeline and other unscrupulous person
(s) that engaged in similar act he believes if carefully implemented will go a
long way to shortening the various problems.
1.1 Background of the study
1.2 Statements of the problem
1.3 Objectives of the study
1.4 Significance of the study
1.5 Research questions
1.6 Formulation of hypothesis
1.7 Scope and limitation of the study
1.8 Definition of basic terms
2.1 Definition of channel system
2.2 Management of logistics/channel system
2.3 Conflict in channel management
2.4 Co-operation by channel participants
2.5 Channels of distribution in petroleum products
2.6 Factors affecting petroleum products
2.7 Managing marketing channels of petroleum products
2.8 The benefits of using efficient channel
System as a Means of Distributing Petroleum Products
RESEARCH DESIGN AND METHODOLOGY
3.1 Research design
3.2 Area of study
3.3 Population of the study and sample size
3.4 Instrument used
3.5 Validity of the instrument
3.6 Reliability of the instrument
3.7 Method of data collection
3.8 Method of data analysis
PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Summary of the results and findings
4.2 Testing of hypothesis
DISCUSSION, CONCLUSION AND RECOMMENDATION
5.1 Discussion of the result
5.3 Recommendation, suggestion for further research
This chapter consists of details of the topic under
research. Here the background of the study statement of the problem,
objectives and significance of the study will be revealed along with research
question so as to enable the researcher know what the research work is all
BACKGROUND OF THE STUDY
As a result of petroleum products being the major exporting
product among others, of our country. Our country solely depends on it as
the highest percentage revenue on the overall percentage of the total
exportation products or items.
In the 1979s after the civil war, Nigerians have Agricultural
products as the dependent product in both domestic and international
uses. But today due to greater lucrative of this product all over the
world, abandoned the former for the latter.
As the uses is universal, the extractive regions which are at
South east and South west encountered a difficult impact to be supplied or
distribute to various areas of other regions of the country, due to mainly
mismanagement and other opposing factors. The transportation of this
extracting products from the originated area to the refinery was a great
problem in the country, because of its form bulky and channel of distribution.
The government then employed foreign bodies to refine this product
in order to reach to the hook and of the country. The refinery built and
managed by government admitted a foreign firm to have a part in the refinery
for the bases of their services as regards to importation. Still not adequate
as the dealers divert this product to their own perspective regions where they
expect to dispose it in a high value.
At times, this petroleum products i.e. fuel, kerosene, diesel,
bitumen to mention but few do change totally the generic colour used to it to
another unpredicted colour thereby caused a harm to human body. These
dealers were formerly the staffs of one firm and another for years, left their
various perspective offices for the marketing of these products thereby formed
one organization and another to impose the prices on this products.
The region that is basically not interested in the use of this
product by their majority because of their belief or customs has low cost and
optimal quantities than other regions.
From the facts, it becomes clear that if the left cream of the
nation is to be feasible accordingly, a great percentage or rate of the
standard of living would have been a something if smile to the populace.
HISTORY AND BUSINESS OF THE COMPANY (OANDO)
The company commenced business operations as a petroleum marketing
company in Nigeria in 1956 under the name of “ESSO West Africa Incorporated” a
subsidiary of Exxon Corporation of the United States of America. In 1969,
the company was incorporated as ESSO Standard Nigeria Limited, and in 1976, the
Nigerian Government acquired all of ESSO’ s shareholding interest, thereby
fully indigemising the company whose name was subsequently changed to Unipetrol
Nigeria Limited. It became a public limited liability company in 1991,
when the federal government divested 60% of its shareholding to the general
public, and was quoted on the Nigerian Stock Exchange in February 1992.
In 2000, the Federal Government divested its remaining 40% shareholding in the
company, 30% of which was acquired by ocean and oil investment limited whilst
the balance of 10% was taking by the Nigerian Public.
In 2002, the company acquired Agip Petroli International BV’s 60%
shareholding in Agip Nigeria Plc (Agip) and subsequently merged with Agip to
become the second largest player in the downstream petroleum marketing
industry. In December 2003, the company announced the launch of “Oando
PLC” its new corporate identity to signify the creation of a proudly West
Africa brand. The new corporate identify and branding exercise portrays
the values and brand essence of the company service excellence, performance –
driven, dynamic and progressive, consistent quality experience and proudly West
1.2 STATEMENT OF THE PROBLEM
Petroleum products have a numerous problems on logistics
management on its distribution, it is the only and major exporting product of
our country, which is disposed in a high rate to another country thereby
expect the citizening to do the same the tendency of distribution channel to
the Northern and Southern regions of the country is much more sufficient than
other regions, which causes scarcity of the product in these areas. Some
quantities of these products are being diversified to other different stations
for a tremendous income, impact on hoarding which reveals the control is not
Many of the distribution channels are being vandalized by
unscrupulous individuals in the area which stagnantly affects its distribution
and transportation. Moreover, there is weights and measures on the
quantities of this petroleum products making the dealers to have different
prices of disposing this product in their various areas. Finally, the
Boards that deals on the marketing of this petroleum products (NUPENG, PENGASIN,
etc) do impose some requisitions from the federal government which may not come
forth, affect its distributions.
OBJECTIVES OF THE STUDY
The objectives of this study are;
1. To ascertain whether there is an effective and
efficient distribution of petroleum products, all round the country.
2. To determine if sufficient production of
petroleum products are sold at a cheaper rate and curls the trend of scarcity
on the country as the sixth oil producing ration of the world, and the first in
3. To find out whether the various refineries of
the country are put in shape thereby limiting the services of other countries
in refining our own petroleum products in terms of trade.
4. To ascertain whether what we produce is
satisfying the citizen
5. To identify a post – mortem to the present
situation, and that of the future, and many years to come..
6. To determine how the supervision of distribution
of petroleum product is done to curls fore outbreak, and the cost of
resuscitating the damages.
7. Moreover, to identify the availability of
petroleum product to minimize traffic hold – ups, queuing for a long time,
unavailable means of transportation, wastage of hire in transporting one self,
and its high cost.
OF THE STUDY
It requires a little reasoning to discover that this research will
be of immense benefits to the public government, Oando and its numerous
branches, and as well other petroleum dealers. It will enable them to
discover the disequilibrium on the effective. Logistics management on
various petroleum dealers in the country and outside. It will enable them
also to monitor the petroleum marketers on their channel of distribution in
order to reach the purposely masses.
The Niger – Delta populace will benefit through the establishment
of various facilities in their area. The public will discover the
information of the petroleum dealers as regards to the rate of its consumption
and the standard of living in the country. Furthermore, this research
will be immense benefits to Oando on improving their management functions or
activities in all ramifications. It will also help in the offer for
Finally, many forming will benefit for easy mobility of their
business activities and operation especially on those that have petroleum dump
in their environment (UNEC, IMT etc).
1. Do the faults in our refineries affect the
distribution of petroleum products?
2. Can the attitudes of these petroleum Boards
circument the government intervention on the problems?
3. What can be the effect of mismanagement on the
logistics distribution of petroleum product in our country?
4. Can it affect Oando on their struggling to be
the petroleum leaver in the country and Africa?
5. Can the discriminations in the political affairs
of our country affects Oando in their business activities?
6. Can we boast of sixty percentage (60%)
satisfaction of these petroleum products by the average populace?
7. Can we ensure a constant petroleum products in
all regions of our country i.e. Improve in scarcities?
8. Do you think that Bakassi – penusula area will
be benefited from this distribution of petroleum products?
9. What measure can we take against the
perpetrators that engaged in black marketing, thus making a high percentage
10. What can we do to have a stable price of
petroleum products in our country?
1.6 HYPOTHESIS FORMULATION
Hypothesis as we all know is an intelligent guess, a tentative
statement, and a conjectural statement of the relationship between two or more
variable. Therefore, the hypothesis of this study was stated like these;
Ho: Oando Plc cannot improve on the distribution channel in
the logistics management of petroleum product in our country. Null
H1: Oando Plc can improve on the distribution channel in the
logistics management of petroleum product in our country. Alternative
Ho: The Boards of Petroleum dealers cannot stabilize the
price, and rate of petroleum products in Nigeria. Null Hypothesis.
H1: The Boards of Petroleum dealers can stabilize the price,
and rate of petroleum products in Nigeria. Alternative Hypothesis.
OF BASIC TERMS
Distribution, and Replacement of materials.
process of applying managerial functions for effective operation.
Review of the past occurrences or events.
present a plan from being carried out.
sticky substance (from petroleum) used for making road e.t.c.
bring in money.
TERMS AND CONDITIONS APPLY
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