ICT Integration for Improving Logistics Agility of Petroleum Distribution in Nigeria

Document Type : Research Paper

Author

Department of Logistics and Supply Chain Management, Federal University of Technology, Owerri, Nigeria

Abstract

Objective: This study examines how Information and Communication Technology (ICT) integration enhances logistics agility in the distribution of petroleum products in Nigeria. It investigates the roles of digital tools such as ERP systems, IoT-enabled tracking, big data analytics, and real-time information platforms in strengthening responsiveness, operational flexibility, and distribution performance within the downstream petroleum sector.
Methods: A mixed-methods approach was adopted, using structured questionnaires and interviews administered to 210 executives across seven major oil marketing companies under the Major Oil Marketers Association of Nigeria (MOMAN). A total of 187 valid responses were analyzed using descriptive statistics, regression modelling, and ANOVA to assess the influence of ICT variables on distribution agility. Additional non-parametric tests (K-S) validated data distribution patterns and stakeholder consensus on ICT-driven strategies.
Results: Findings reveal strong agreement on ICT’s positive contribution to petroleum distribution efficiency, with mean ratings above 4.4 on a five-point scale across key agility dimensions, namely real-time information flow, cost optimization, demand–supply matching, risk mitigation, and GIS-based monitoring. Regression results show a significant relationship between ICT investment and agile distribution performance. The coefficient indicates that each unit increase in ICT capability yields a 76.6% improvement in agility performance. Stakeholders also strongly support strategic options such as integrated ICT systems, pipeline upgrades, and improved supply capacity.
Conclusion: ICT integration is a critical enabler of agile petroleum distribution in Nigeria, enhancing visibility, accountability, operational speed, and customer value. Strengthened investments in digital infrastructure, workforce capabilities, and coordinated data-driven practices are essential to achieving responsive and competitive downstream logistics.

Keywords

References

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Journal of Optimization and Supply Chain Management
Volume 2, Issue 2
June 2025
Pages 95-110

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