Procurement Management and its Impact on the Performance of Oil and Gas Industry in Nigeria

Abstract

This study aimed to establish how procurement management practices impact on performance of oil and gas producing firms in Nigeria. Ex-post survey approach was adopted for the study with emphasis on the use of secondary data sourced from financial statement of selected companies. The result of the study showed that there exists positive but insignificant relationship between procurement management practices performance of oils and gas companies in Nigeria with a coefficient value of 6.45 and sig. value of 0.589 which is higher than 0.05 level of significance. In conclusion, the study supports that when organization invest adequately in acquisition of assets, the evidence of such investments is a growth in the returns in the form of increased profits to the organization. The study recommend that there is a need to integrate the whole system and departments of companies in oil and gas industry in Nigeria in the procurement management process in order to have a balanced activities in the goals and focus of the departments. Furthermore, top management are also required to always communicate the future plans about assets procurement to all subsystem managers and heads of department to maintain a high level of goal congruency in their operation and to reduce rivalries that emanates from departmental evaluations.