DOI: 10.36344/ccijhss.2018.v04i04.008

Pages: 87-97

This study focuses on improving the operational performance of transport services in Nigeria by examining the economic life cycle of the vehicles in Nigerian National Petroleum Cooperation (NNPC). Data were collected on vehicle numbers, make, price, year of purchase and maintenance costs. Using Vehicle Replacement and Maintenance Model (VRMM) for the analysis. The study found that Toyota Hilux (T/Hilux) has economic life span of six years, while both Corolla T/Coaster and Skoda Superb have economic life span of eight years. Lastly, T/Camry and Honda Pilot should be replaced after nine years. Also, it is discovered that the NNPC vehicles were used to the end of their life spans. In the asset management principle, this practice is an economic wastage i.e. waste of resources and this issue need to be addressed. In view of the findings in this research work, the following recommendations are explained; the land transport department of NNPC should derive a policy of using their vehicles to its economic life span thereby preventing economic wastage, and NNPC fleet managers should be able to set apart a certain amount every year to make replacement easy. For example, 15% of inflation rate can be set apart every year for each vehicle.