A Need for Investment in Nigerian Crude Oil Refining and Infrastructures: A Panacea to Refined Petroleum Shortages and Economic Growth
DOI:
https://doi.org/10.14738/abr.84.7951Keywords:
Keywords: Oil and Gas, Shortages, Investment, Refineries and Infrastructures, crude oil, Economic Development, Nigeria.Abstract
Despite the abundance of occurring natural crude oil resources, Nigeria continually suffers shortages of refined petroleum products, which undermines economic development of the country. The purpose of this multicase study was to explore the strategic role of how investment in petroleum refineries and infrastructures can improve supply and hence mitigate shortages or scarcity of refined petroleum products in the petroleum supply chain and enhance economic development in Nigeria. The research participants comprise of ten senior leaders from two private-sector Nigerian downstream petroleum supply companies located in the Niger Delta region, who had effectively implemented strategies for petroleum supply. The conceptual framework for the study was the resource based view theory. Data were collected through semistructured face-to-face interviews and review of operational and policy documents from the supply or marketing petroleum companies. Data were transcribed, analyzed, and validated through member checking and triangulation. The discoveries indicate the need to establish more refineries, privatize the existing moribund refineries, and build more infrastructures in Nigeria. Findings may be used by petroleum leaders and investors to optimize available crude oil natural resources, and to create investment strategies in the petroleum supply chain, leading to product availability, sustainability, poverty reduction, and economic development in Nigeria.
References
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Alimi, R. S., & Fatukasi, B. (2014). The role of oil prices and real exchange rate on the output growth in Nigeria. International Journal of Research Economic, 3, 70-79. Retrieved from www.researchgate.net/profile/R_Alimi/publication/265051311
Aminu, S. A., & Olawore, O. P. (2014). Empirical investigation of challenges of distribution of premium motor spirit (PMS) in federal capital territory (FCT), Abuja and environs, Nigeria. International Journal of Management Sciences and Humanities, 2(2), 11-38. Retrieved from www.ijmsh.com
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Anifowose, B., Lawler, D., Horst, D., & Chapman, L. (2014). Evaluating interdiction of oil pipelines at river crossings using Environmental Impact Assessments. Area, 46(1), 4-17. doi:10.1111/area.12065
Asagunla, T. M., Agbede, M. O. (2018). Oil revenue and output growth in nigeria. International Institute of Academic Research and Development. 4 (6), 65-74. Available at www.iiardpub.org
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99-120. doi:10.1177/014920639101700108
Birt, L., Scott, S., Cavers, D., Campbell, C., & Walter, F. (2016). Member checking: A tool to enhance trustworthiness or merely a nod to validation? Qualitative Health Research, 26(13), 1802-1811. Retrieved from www.qhr.sagepup.com
Bristowe, K., Selman, L., & Murtagh F. E. (2015). Qualtative research methods in renal medicine: An introduction. Nephrology, Dialysis, Transplantation, 30, 1423-1431. doi:10.1093/ndt/gfu410
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Chigbu, U. S., Ubah, C. P., & Chigbu, E. E. (2016). Deregulation of the petroleum downstream sector and Nigerian economy: An econometric investigation. International Journal of Business and Applied Social Science, 2 (9), 16-27. Retrieved from www.ijbassnet.com
Crook, T. R., & Esper, T. L. (2014). Do resources aid in supply chain functioning and management? Yes, but more (and more precise) research is needed. Journal of Supply Chain Management, 50(3), 94-97. doi:10.1111/jscm.12055
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Department of Petroleum Resources (2018). Operations. Retrieved from https://dpr.gov.ng/index
Devakumar, E. (2019). Dangote refinery. Available at https://leadership.ng
Dulami, H. A. M. (2014). The collapse of crude oil prices: Cyclical evolution or market manipulation? Economic Insight-Trends and Challenges, 66, 89-96. Retrieved from www.upg-bulletin-se.ro/archive_en.html
Fatona, L. (2019). Nigerian association of petroleum exploratinist. 37th Annual international conference and exhibition. Management session. Available at www.nape.org.ng.
Gare, K., & Melin, U. (2011). SMEs need formative infrastructure for business transformation. Journal of Enterprise Information Management, 24, 520-533. doi:10.1108/17410391111166558
Glyba, H., Mulugetta, Y., & Azapagic, A. (2013). Passenger transport in Nigeria: Environmental and economic analysis with policy recommendation. Energy Policy, 55(1), 353-361. Retrieved from www.elsevier.com/locatelenpol
Hart, S. M., & Warren, A. M. (2015). Understanding nurses’ work: Exploring the links between changing work, labour relations, workload, stress, retention and recruitment. Economic and Industrial Democracy, 36, 305-329. doi:10.1177/0143831X13505119
Ingham-Broomfield, R. (2015). A nurses’ guide to qualitative research. Australian Journal of Advanced Nursing, 32(3), 34-40. Retrieved from http://www.ajan.com.au
Itsekor,L. U. (2018). Mitigating petroleum product shortages in the Nigerian downstream petroleum supply industry. (Walden Dissertation and Doctoral Studies) https://ezp.waldenulibrary.org/login?url=https://search-proquest- com.ezp.waldenulibrary.org/docview/2033044375?accountid=14872
Kaczynski D., Salmona M., & Smith T. (2014). Qualitative research in finance. Australian Journal of Management, 39, 127-135. doi:10.1177/0312896212469611
Lawal, Y. K. (2014). Subsidy removal or deregulation: Investment challenge in Nigerian petroleum industry. American Journal of Social and Management Sciences. 5, 1-10. doi:10.5251/ajsms.2014.1.1.10
Marshall, C., & Rossman, G. (2016). Designing qualitative research (6th ed.). Thousand Oaks, CA: Sage.
McCusker, K., & Gunaydin, S. (2015). Research using qualitative, quantitative or mixed methods and choice based on the research. Perfusion, 30, 537-542. doi:10.1177/0267659116
Morali, O., & Searcy, C. (2013). A review of sustainable supply chain management practices in Canada. Journal of Business Ethics, 117, 635-658. doi:10.1007/s10551-012-1539-4
Nigerian National Petroleum Corporation. (2018). Profile / products. Retrieved from www.nnpcgroup.com
Okwanya, I., Moses, O., & Pristine, J. M. (2015). An Assessment of the impact of petroleum subsidy on consumer price index in Nigeria. Global Journal of Interdisciplinary Social Sciences, 4(1), 36-39. Retrieved from www.gifre.org
Oladepo, I. O. (2014). Evaluation of petroleum products marketing in a globalizing economy: Conceptual evidence from Nigeria. British Journal of Marketing Studies, 2 (2), 71-81. Retrieved from www.eajournals.org
O’Lynn, C., & Krautscheid, L. (2011). Original Research: ‘how should I touch you?’: A qualitative study of attitudes on intimate touch in nursing care. American Journal of Nursing, 111, 24–31. doi:10.1097/10.1097/01.NAJ.0000395237.83851.79
Organization of Petroleum Exporting Countries. (2018). Brief history. Retrieved from www.opec.org/opec_web/en/about_us/125.htm
Osagibovo, J. A. (2012). Developmental implications of Nigeria’s oil wealth. Journal of Research in National Development, 10, 410-416. Retrieved from www.transcampus.org./journals
Osuala, U. S. (2013). The sublimeness of sleaze in the NNPC in the fourth republic, 1999–2007: A historical conspectus. Journal of Culture, Society and Development, 2, 52-59. Retrieved from www.iiste.org/journals/index.php/JCSD
Penrose, E, T. (1959). The theory of the growth of the firm. New York: John Wiley
Rowley, J. (2012). Conducting research interviews. Management Research Review, 35, 260–271. doi:10.1108/01409171211210154
Srinivasan, S. (2014). Economic populism, partial deregulation of transport fuels and electoral outcomes in India. Energy Policy, 68, 465-475. doi:10.1016/j.enpol.2014.01.026
Tule, M., Salisu, A., & Chimeke, C. (2018). You are what you eat: The role of oil price in Nigeria inflation forecast. Centre For Econometric and Allied Research, University of Ibadan Working Paper Series CWPS040. Retrieved from www.researchgate.net
Yin, R. (2014). Case study research method: Design and method (5th ed.). Thousand Oaks, CA: Sage.
Zimmermann, F., & Foerstl, K. (2014). A meta‐analysis of the “purchasing and supply management practice–performance Link”. Journal of Supply Chain Management, 50(3), 37-54. doi:10.1111/jscm.12051
Adangor, Z. (2016). Petroleum industry bill 2012 and the principle of vicarious liability of oil producing states and local government councils for sabotage of petroleum facilities: Resurrecting an old colonial policy in the Niger Delta region of Nigeria. Journal of Law and Conflict Resolution, 8(1), 1-14. doi:10.5897/JLCR2015.0225
Adekomaya, O., Jamiru, T., Sadiku, R., Huan, Z., & Sulaiman, M. (2016). Gas flaring and its impact on electricity generation in Nigeria. Journal of Natural Gas Science and Engineering, 29, 1-6. doi:10.1016/j.jngse.2015.12.042
Adelabu, N. S. (2012). The political economy of oil deregulation in Nigeria’s fourth republic: Prospects and challenges. Journal of Emerging Trends in Educational Research and Policy Studies, 3, 193-198. Retrieved from www.jeteraps.scholarlinkresearch.org
Agbede, M. O. (2013). The growth implication of oil price shock in Nigeria. Journal of Emerging Trends in Economics and Management Science, 4, 343-349. Retrieved from http://www.jetems.scholarlinkresearch.com
Akanle, O., Adebayo, K., & Adetayo, O. (2014). Fuel subsidy in Nigeria: Contexts of governance and social protest. International Journal of Sociology and Social Policy, 34, 88-106. doi:10.1108/IJSSP-01-2013-002
Akinwotu, S. A. (2014). A comparative study of the discursive strategies in the media interviews of participants in the January 2012 fuel subsidy removal crisis in Nigeria. Journal of Arts and Humanities, 3(7), 21-33. Retrieved from www.theartsjournal.org/index.php/site/issue/view/21
Alaba, O. C., & Agbalajobi, S. A. (2014). Evaluation of private refineries and depots in distribution of petroleum products in Nigeria. International Journal of Engineering and Technology, 4, 118-126. Retrieved from www.psu.edu
Alimi, R. S., & Fatukasi, B. (2014). The role of oil prices and real exchange rate on the output growth in Nigeria. International Journal of Research Economic, 3, 70-79. Retrieved from www.researchgate.net/profile/R_Alimi/publication/265051311
Aminu, S. A., & Olawore, O. P. (2014). Empirical investigation of challenges of distribution of premium motor spirit (PMS) in federal capital territory (FCT), Abuja and environs, Nigeria. International Journal of Management Sciences and Humanities, 2(2), 11-38. Retrieved from www.ijmsh.com
Aminu, S. A. & Olayinka, K. A. (2014). Achieving petrol conservation through higher pump price in Nigeria: Evidence from the transport sector of Lagos State. International Journal of Management Sciences and Humanities, 2(2), 102-122. Retrieved from www.ijmsh.com
Anifowose, B., Lawler, D., Horst, D., & Chapman, L. (2014). Evaluating interdiction of oil pipelines at river crossings using Environmental Impact Assessments. Area, 46(1), 4-17. doi:10.1111/area.12065
Asagunla, T. M., Agbede, M. O. (2018). Oil revenue and output growth in nigeria. International Institute of Academic Research and Development. 4 (6), 65-74. Available at www.iiardpub.org
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99-120. doi:10.1177/014920639101700108
Birt, L., Scott, S., Cavers, D., Campbell, C., & Walter, F. (2016). Member checking: A tool to enhance trustworthiness or merely a nod to validation? Qualitative Health Research, 26(13), 1802-1811. Retrieved from www.qhr.sagepup.com
Bristowe, K., Selman, L., & Murtagh F. E. (2015). Qualtative research methods in renal medicine: An introduction. Nephrology, Dialysis, Transplantation, 30, 1423-1431. doi:10.1093/ndt/gfu410
Carter, N., Bryant-Lukosius, D., Dicenso, A., Blythe, J., & Alan, J. (2014). The use of triangulation in qualitative research. Oncology Nursing Forum. 41, 545-547.doi:10.1188/14.ONF.545-547
Castleberry, A. (2014). NVivo 10. American Journal of Pharmaceutical Education, 78(1), 25. doi:10.5688/ajpe78125
Chigbu, U. S., Ubah, C. P., & Chigbu, E. E. (2016). Deregulation of the petroleum downstream sector and Nigerian economy: An econometric investigation. International Journal of Business and Applied Social Science, 2 (9), 16-27. Retrieved from www.ijbassnet.com
Crook, T. R., & Esper, T. L. (2014). Do resources aid in supply chain functioning and management? Yes, but more (and more precise) research is needed. Journal of Supply Chain Management, 50(3), 94-97. doi:10.1111/jscm.12055
David, A. C., Harrak, M. E., Mills, M., & Ocampus, L. (2014). Oil spill covers: Linkages in petroleum product pricing policies in West African countries. The Journal of Developing Areas, 48, 329-363. Retrieved from www.search.blekko.com
Department of Petroleum Resources (2018). Operations. Retrieved from https://dpr.gov.ng/index
Devakumar, E. (2019). Dangote refinery. Available at https://leadership.ng
Dulami, H. A. M. (2014). The collapse of crude oil prices: Cyclical evolution or market manipulation? Economic Insight-Trends and Challenges, 66, 89-96. Retrieved from www.upg-bulletin-se.ro/archive_en.html
Fatona, L. (2019). Nigerian association of petroleum exploratinist. 37th Annual international conference and exhibition. Management session. Available at www.nape.org.ng.
Gare, K., & Melin, U. (2011). SMEs need formative infrastructure for business transformation. Journal of Enterprise Information Management, 24, 520-533. doi:10.1108/17410391111166558
Glyba, H., Mulugetta, Y., & Azapagic, A. (2013). Passenger transport in Nigeria: Environmental and economic analysis with policy recommendation. Energy Policy, 55(1), 353-361. Retrieved from www.elsevier.com/locatelenpol
Hart, S. M., & Warren, A. M. (2015). Understanding nurses’ work: Exploring the links between changing work, labour relations, workload, stress, retention and recruitment. Economic and Industrial Democracy, 36, 305-329. doi:10.1177/0143831X13505119
Ingham-Broomfield, R. (2015). A nurses’ guide to qualitative research. Australian Journal of Advanced Nursing, 32(3), 34-40. Retrieved from http://www.ajan.com.au
Itsekor,L. U. (2018). Mitigating petroleum product shortages in the Nigerian downstream petroleum supply industry. (Walden Dissertation and Doctoral Studies) https://ezp.waldenulibrary.org/login?url=https://search-proquest- com.ezp.waldenulibrary.org/docview/2033044375?accountid=14872
Kaczynski D., Salmona M., & Smith T. (2014). Qualitative research in finance. Australian Journal of Management, 39, 127-135. doi:10.1177/0312896212469611
Lawal, Y. K. (2014). Subsidy removal or deregulation: Investment challenge in Nigerian petroleum industry. American Journal of Social and Management Sciences. 5, 1-10. doi:10.5251/ajsms.2014.1.1.10
Marshall, C., & Rossman, G. (2016). Designing qualitative research (6th ed.). Thousand Oaks, CA: Sage.
McCusker, K., & Gunaydin, S. (2015). Research using qualitative, quantitative or mixed methods and choice based on the research. Perfusion, 30, 537-542. doi:10.1177/0267659116
Morali, O., & Searcy, C. (2013). A review of sustainable supply chain management practices in Canada. Journal of Business Ethics, 117, 635-658. doi:10.1007/s10551-012-1539-4
Nigerian National Petroleum Corporation. (2018). Profile / products. Retrieved from www.nnpcgroup.com
Okwanya, I., Moses, O., & Pristine, J. M. (2015). An Assessment of the impact of petroleum subsidy on consumer price index in Nigeria. Global Journal of Interdisciplinary Social Sciences, 4(1), 36-39. Retrieved from www.gifre.org
Oladepo, I. O. (2014). Evaluation of petroleum products marketing in a globalizing economy: Conceptual evidence from Nigeria. British Journal of Marketing Studies, 2 (2), 71-81. Retrieved from www.eajournals.org
O’Lynn, C., & Krautscheid, L. (2011). Original Research: ‘how should I touch you?’: A qualitative study of attitudes on intimate touch in nursing care. American Journal of Nursing, 111, 24–31. doi:10.1097/10.1097/01.NAJ.0000395237.83851.79
Organization of Petroleum Exporting Countries. (2018). Brief history. Retrieved from www.opec.org/opec_web/en/about_us/125.htm
Osagibovo, J. A. (2012). Developmental implications of Nigeria’s oil wealth. Journal of Research in National Development, 10, 410-416. Retrieved from www.transcampus.org./journals
Osuala, U. S. (2013). The sublimeness of sleaze in the NNPC in the fourth republic, 1999–2007: A historical conspectus. Journal of Culture, Society and Development, 2, 52-59. Retrieved from www.iiste.org/journals/index.php/JCSD
Penrose, E, T. (1959). The theory of the growth of the firm. New York: John Wiley
Rowley, J. (2012). Conducting research interviews. Management Research Review, 35, 260–271. doi:10.1108/01409171211210154
Srinivasan, S. (2014). Economic populism, partial deregulation of transport fuels and electoral outcomes in India. Energy Policy, 68, 465-475. doi:10.1016/j.enpol.2014.01.026
Tule, M., Salisu, A., & Chimeke, C. (2018). You are what you eat: The role of oil price in Nigeria inflation forecast. Centre For Econometric and Allied Research, University of Ibadan Working Paper Series CWPS040. Retrieved from www.researchgate.net
Yin, R. (2014). Case study research method: Design and method (5th ed.). Thousand Oaks, CA: Sage.
Zimmermann, F., & Foerstl, K. (2014). A meta‐analysis of the “purchasing and supply management practice–performance Link”. Journal of Supply Chain Management, 50(3), 37-54. doi:10.1111/jscm.12051
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Published
2020-04-12
How to Cite
Itsekor, L. (2020). A Need for Investment in Nigerian Crude Oil Refining and Infrastructures: A Panacea to Refined Petroleum Shortages and Economic Growth. Archives of Business Research, 8(4), 31–46. https://doi.org/10.14738/abr.84.7951
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