This research project is a very crucial study for the Nigeria
government owned companies. The study was motivated by the necessity to
solve this problems of perceived necessity to solve this problems of
perceived ineffective management in government owned companies in
To solve the research problems, both primary and secondary
data were collected the instruments used in collecting the data were
Questionnaires and oral interviews. The respondent comprised the
personnel, distributors and consumers of the company’s products. The
following hypotheses were tested.
Data analysis and interpretation gave the following.
i. Most of the respondents completed and returned their questionnaires representing the total distribution
Most of the questionnaires were distributed to the semi-urban while
others were distributed to urban questionnaires and rural area.
Based on the findings, the researchers recommend that!
i. There should be efficient distribution
ii. There should limited control of sub dealers
iii. Users should be granted licenses.
1.1 BACKGROUND OF THE STUDY
is not complete until the goods get to consumers for whom they are
meant. A typical firm will discover that the consumers of its product
are scattered abroad. The firms decisions to distribute its products
directly through own sales outlets or indirectly through marketing
intermediaries ie (Wholesalers or retailers) alone in not enough to the
goods to consumers the firms has to ensure that the products are
actually available at or made available to the distribution outlets.
Adequate care has to be taken of the products to minimize losses or
damages and commensurate customer services have to be given in order to
ensure customer satisfaction and increased patronage. In other words,
there is the need for proper management of the flow of products from
manufacturers to consumers in order to achieve consumer satisfaction and
the commercial goods of the firm. The attainment of these goals falls
into the realm of physical distribution aspect of marketing. The
increase snphssis given to the concept of physical distribution in
commercial firms and industries since its inception in 1950s is a
confirmation of the its immense contribution to the successful
achievement of marketing goals physical distribution is the term used to
describe all the activities, that have to do with planning and
implementing the making or production of goods from the manufactures or
sellers to buyers. These activities include the processing of sales
order, materials handling inventory management demand forecasting,
storage of materials, transportation and customer services among
The distribution and marketing of petroleum products.
started in Nigeria by the year 1907 with the establishment of a link in
sumo lower, kerosene, by seconyvacum oil company (now mobile) but
today, it has grown to include other multi-national companies. Referred
to as the big seven, they includes African petroleum, Total, Agip,
National Oil and marketing company, Texaco marketing and distribution of
petroleum was in the hand of the private section. Inadequately of the
private sector increase of the mid 705 prompting government intervention
which led to the construction of extensive pipeline network and strong
The Nigerian National Petroleum Corporation (NNPC) was set up to prospect.
1.2 STATEMENT OF PROBLEM
is a very important instrument in every marketing organization,
industry and retail outlet effectively planned and implemented
distribution policies are basically a prerequisite for proper
integration of the activities that will eventually used to the
activities eventual achievement of the organizational goal, but more
often than not, problems tend to exist where policies, are not defined
or where they are not existing.
In most cases, prices of the products of petroleum being distributed
are highly rated or such products become very scared as a result of the
involvement of distribution channels. Many times, this had led the
consideration of whether channel members are necessary in distribution
and whether effective monitoring of the distribution channel will
prevent not only high price and scarcity of the product in question. It
will prevent the marketing activities
More so, in a situation where
economic and technological advancement have become a thing to reckon
with, the competition in the market place, there is need to improve
distribution effectiveness through the wholesalers, retailers and other
types of intermediaries.
Availability of product at right time and
place, which is t effort of middlemen as at ready mentions. But the
dynamic nature of the environment and other bureaucratic bottlenecked
can makes this success in distribution not to be realistic. This posses a
problem in the distribution of petroleum products. Due tot eh
unrealistic incorporation of marketing activities in making the
petroleum products available in the market place or rather improve for
more effective and efficient distribute.
This study there tried to
highlight and to evaluate the problem of physical distribution if the
distribution of petrol in Enugu State.
1.3 OBJECTIVES OF THE STUDY
study “problems of petroleum products distribution in Nigeria” is
basically aimed at finding the cause of incessant shortage of petrol in
Enugu. To find out whether the storage facilitates, provided at the
depot and by the oil marketing companies are not enough to ensure steady
The study also aims at reviewing the distributive network of
the oil marketing companies. Since a production process is said to be
incomplete until goods and services are made available to the ultimate
The study also intends to assess the ability of the oil
marketing companies to meet up with emergencies and unpleasant situation
like strike action erratic increases in demand etc.
1.4 RESEARCH QUESTION
The following are the research questions of the study which was investigates.
quality of petroleum that is most preferable in Enugu metropolis? This
is the first attempt made by the researcher to get research question
about the type of petroleum of oil quality needed among the consumers of
What variables do consumers consider when buying the products?
the researcher to use this, whish is based as the nature of planning is
being considered among the people or the consumers of the products.
are the causes of problems in the distribution of petroleum in Nigeria?
What is to be considered as the solution to this problem of petroleum
distribution in Nigeria on Enugu Metropolis? Why is it that government
in conjunction with “NNPC” recruit inadequate workers for the production
of this fuel distribution?
Does the NNPC branches to produces oil
in Nigeria Port-Harcourt, Warri and Kaduna Manage the company well, if
so why thin the problem of petroleum distribution affect them?
1.5 SIGNIFICANCE OF THE STUDY
study is of great importance is that any study carried out in the
marketing and distribution of petroleum product would be of significance
to all and sundry in the country and Enugu metropolis in particular
because of its economic implication.
The study is concerned with
identifying the problems of physical distribution and the ways in which
the problem could be solved so as to ensure a lasting solution to the
It will assist the oil marketers and dialers to petroleum to
improve on their distribution of petrol in Enugu metropolis. Because if
these problem will be solved it will benefit the consumers to carryout
their marketing programmes.
This study will be of immense benefit to
organization that deals on petroleum products in Enugu metropolis and
to determine the extent of their oil and petroleum effectiveness. In
addition, the study will determine the factors or problems limiting
petroleum production distribution of the marketing organization. It is
expected that the findings will help to bridge any gap that may exist
and to make these petroleum organizations in Enugu metropolis more
effective. And more efficient in planning and execution of petroleum
Through this research conducted or investigated the oil /
petroleum marketing organizations will understand their shortcomings,
problems and weak points and will subsequently adopt measures aimed at
enhancing their petroleum distribution effectively and the government
should be in position to adopt the right strategies to enable petroleum
product distribution marketing organization achieve better goals.
1.6 SCOPE OF THE STUDY
This study give ways or
opportunities for the marketers and distributors of petroleum products
to deal with the problems that affect the country particularly Enugu
metropolis in the distribution of their product.
should avoid protocols and recruit adequate workers fro an improvement
and high output for companies. They should also embark on quality raw
materials. In other to increase the productivity and distribution of the
product in Enugu metropolis.
1.7 LIMITATIONS OF THE STUDY
This study is to states the problem we as a researcher encountered while carrying out the research study.
major limitation of the study includes transportation problem: the
researcher encountered transportation problem during the process of
carrying out field wok or research at NNPC depot station at Warri,
Port-Harcourt Station, due to lack of infrastructure facilities on our
major, federal roads that links to the NNPC’s locations: the
transportation problems was very cost for us to transport our self’s
another to acquires information’s from our respondents, there was a
traffic congestion an our roads which made us unable to get a field
information in time and as at when due.
Another problem is the “lack
of adequate fund to carryout the research work it is an obvious facts
that any research work that must be successful ought to involved enough
fund to carryout the research.
Due to inability of the researcher to provide adequate fund makes them to lack behind and delayed the project work.
These was the major limitations encountered from the researchers.
1.8 DEFINITION OF MAJOR TERMS
Distribution: This is the efficient and effective movement of goods from
suppliers ie manufactures, wholesalers or retailer tot eh ultimate
Distribution Channels: They are ways through which goods move from the manufactures to the ultimate consumers
Services: These are essential services, that the manufacturers and
channel member renders tot eh customers such as good delivery time
Storage: This involves the availability pf secure premises where goods can b kept safe from the spoilage by water condition
Advancement: This is the high increase of science and technologies
improvement in the production of goods and services.
Goldstein, I.N. (1974), Training Program Development and Evaluation. Books / Cole Publishers, New York p. 21
Ubeku, A.K (1984) Personnel Management in Nigeria, Macmillan Publishers, London, p. 194
Ubeku A.K. P. Cit P. 198
Ralph Nwatu Jnr (2006) Social and Economic Development Publishers, Ctoc Plaza Nigeria p.294
Germini A et al (1964) Public Management in Nigeria p.114.