Effect of Corruption and Pipeline Vandalism on the performance of NNPC in Nigeria

Goni Ibrahim, Ahmad Zubir Bin Ibrahim, Badariah HaJi Din

Abstract


The declining performance of Nigerian National Petroleum Corporation (NNPC) has received serious critics among literatures. It is critically observed that high rate of corruption and frequent pipe vandalism are factors leading to the dwindling performance of the corporation. Though, past literatures have produced inconsistent results. Thus, this study examined the effect of corruption and pipeline vandalism on organizational performance in NNPC. The study is quantitative and survey research design was employed. Data were collected by using instruments adapted from past studies. The study population is 6,342 of the middle cadre NNPC and a total of 514 staff participated in the study. The study utilized partial least square structural equation modelling PLS-SEM using Smartpls 3 software. Two hypotheses were formulated for testing. The result showed that corruption has a significant negative effect on performance and pipeline vandalism has significant negative effect on the performance of NNPC. The study concludes that corruption and pipeline vandalism were significant predictors of performance of NNPC. The study recommended that Organizational performance would be in good shape, if the tendency of corruption is minimal. This implies that, evaluation of corruption takes primacy from the empirical test of the relationship under varying circumstances. The Nigerian Government and management of NNPC should institutionalize the culture of corporate social responsibility, sensitive to the needs and aspirations of the oil bearing communities.

Keywords


Organizational performance, corruption, pipeline vandalism, NNPC.

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