RISK ANALYSIS IN DISTRIBUTION OF PETROLEUM PRODUCTS IN SOUTHWEST, NIGERIA

Abstract

The study investigates the risks in distribution of petroleum products and effective management of the risks in southwest Nigeria. Forty eight (48) questionnaires were distributed to the staff of NNPC/PPMC depots in Ondo, Ogun and Oyo states. Simple random sampling technique was used to distribute the questionnaires to the respondents. The questionnaires were analyzed using descriptive statistical analyses and the ratings of the risk severity were done using reliability important indices. The risks from vandalization was rated highest when pipelines are used while the risk of accident was rated highest when roads are used for the distribution of petroleum products. Also, administrative control measure was ascertained as the most effective measure of managing risk in the distribution of petroleum products. The study finally suggested that government and stakeholders in the oil industry should revitalize the rail transport for distribution of petroleum products which is less prone to risk.