Mitigating Petroleum Product Shortages in the Nigerian Downstream Petroleum Supply Industry

Mitigating Petroleum Product Shortages in the Nigerian Downstream Petroleum Supply Industry by Lucky Ubini Itsekor MEPE, Delta State University, 2009 MBA, Lagos State University, 2003 BS, Obafemi Awolowo University, 1998 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University June 2018 Abstract In Nigeria, almost every business enterprise relies on petroleum products for power or transportation. Shortages of petroleum products cripple business activities and undermine development of the Nigerian economy. The purpose of this multiple case study was to explore supply chain management strategies needed by petroleum business leaders to mitigate shortages and sustain business development in Nigeria. The sample for the study included 10 senior leaders from 2 private-sector Nigerian downstream petroleum supply companies located in the Niger Delta region, who had successfully implemented strategies for petroleum supply. The resource based view theory served as the conceptual framework for the study. Data collection included semistructured face-to-face interviews and review of operational and policy documents from the supply companies. Data were transcribed, analyzed, and validated through member checking and triangulation, resulting in the identification of 6 themes: appropriate allocation of resources to all segments of the supply value chain for efficiency, efficient banking and foreign exchange operations, engaging appropriate human capital for operational efficiency, technology application in both operational and nonoperational segments, maintaining good organization reputation in the industry, and investment in Nigerian crude oil refining and infrastructures. Findings may be used by petroleum business leaders and investors to create effective and efficient supply chain management, leading to product availability, employment opportunities, poverty reduction, and economic development.In Nigeria, almost every business enterprise relies on petroleum products for power or transportation. Shortages of petroleum products cripple business activities and undermine development of the Nigerian economy. The purpose of this multiple case study was to explore supply chain management strategies needed by petroleum business leaders to mitigate shortages and sustain business development in Nigeria. The sample for the study included 10 senior leaders from 2 private-sector Nigerian downstream petroleum supply companies located in the Niger Delta region, who had successfully implemented strategies for petroleum supply. The resource based view theory served as the conceptual framework for the study. Data collection included semistructured face-to-face interviews and review of operational and policy documents from the supply companies. Data were transcribed, analyzed, and validated through member checking and triangulation, resulting in the identification of 6 themes: appropriate allocation of resources to all segments of the supply value chain for efficiency, efficient banking and foreign exchange operations, engaging appropriate human capital for operational efficiency, technology application in both operational and nonoperational segments, maintaining good organization reputation in the industry, and investment in Nigerian crude oil refining and infrastructures. Findings may be used by petroleum business leaders and investors to create effective and efficient supply chain management, leading to product availability, employment opportunities, poverty reduction, and economic development. Mitigating Petroleum Product Shortages in the Nigerian Downstream Petroleum Supply Industry by Lucky Ubini Itsekor MEPE, Delta State University, 2009 MBA, Lagos State University, 2003 BS, Obafemi Awolowo University, 1998 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University June 2018 Dedication I dedicate this doctorate to my lord and savior, Jesus Christ. I achieved this success not by my might, power, but by his grace. The strength, finance, and time involvement miraculously came from the almighty God. I want to especially thank my beautiful wife, Mary, for acting as a pillar of support during my Walden journey. To my daughters, Romunu, Angel, Anthonette, Annabel, and Isabella, I appreciate you. Daddy took part of your play time for study. One day, you will grow to earn your doctorates. To my mother, thank you for your prayers and positive prophecy over my life. You are the best mother ever. I also want to say a big thank you to my wonderful family, the Ebeye’s, Chief Raphael Itsekor, all my brothers and sisters, and even in death, late Bose P. Ekokotu, for the different roles you played in my life at one time or the other. I thank you all. Acknowledgments Let me start by thanking my committee chair, Dr. Yvette Ghormley, for all the guidance, direction, support, and encouragement during this journey. Dr. Ghormley raised my academic abilities from that of a master’s degree holder to that of a doctoral candidate. When I felt blocked or felt like quitting, Dr. Ghormley provided a solution in a very subtle manner. Again, I say, thank you very much. This program may not have been completed without the contribution of my second committee member, Dr. Tim Truitt, and my URR, Dr. Marilyn Simon. You were both amazing in your reviews, and I want to say a profound thank you for your support. In the class, I want to appreciate the contributions of Dr. J. Mc Henry and also the support and encouragement of Dr. Corey Fair. Furthermore, I want to appreciate Dr. Ahmed Tijani Ibrahim, who encouraged me from the beginning of this program to the end. A big thank you also goes to Dr. Oyebola Akande (Walden Alumni) for her encouragement in challenging times.