In PL/SQL you can't use operators such as '=' or '<>' to test for NULL because all comparisons to NULL return NULL. To compare something against NULL you need to use the special operators IS NULL or IS NOT NULL which are there for precisely this purpose. Thus, instead of writing
IF var = NULL THEN...
you should write
IF VAR IS NULL THEN...
In the case you've given you also have the option of using the NVL built-in function. NVL takes two arguments, the first being a variable and the second being a value (constant or computed). NVL looks at its first argument and, if it finds that the first argument is NULL, returns the second argument. If the first argument to NVL is not NULL, the first argument is returned. So you could rewrite
IF var IS NULL THEN
var := 5;
END IF;
as
var := NVL(var, 5);
I hope this helps.