Agile logistics challenges of petroleum product distribution in Nigeria

Abstract

Agile distribution of petroleum product is a strategy towards uninterrupted supply of quality products at affordable prices. Industry and economic productivity as well as transportation in Nigeria is largely driven by petroleum energy due to low investments in other sources of energy, yet the petroleum energy supply and distribution is marred by lingering history of scarcity, high prices, and distribution bottlenecks to end users all over the nation. The study through a descriptive survey following literature view, primary and secondary data collection sought to determine at granular level the limiting factors of agile petroleum product distribution in Nigeria. Petroleum supply, consumption and pricing are significant aspects of the study survey. Study findings shows limiting factors of distribution agility cut across pricing, supply, technology, infrastructure, accessibility and lead time, storage, management, and Human Resource issues. Significantly lack of local refining capacity and poor distribution network are notorious for supply limitations and rising price of products. Addressing the challenges would require strong political will, driven by genuine commitment and focused attention towards economic growth and improvement in the welfare of the citizens.