Authors : Obadina A. Babatunde

Volume/Issue : Volume 11 - 2026, Issue 7 - July

Google Scholar : https://tinyurl.com/bdd5msd8

Scribd : https://tinyurl.com/5f4ecamn

DOI : https://doi.org/10.38124/ijisrt/26jul1748

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : Nigeria's industrial sector depends heavily on imported raw materials, yet firms that source these inputs continue to confront slow customs clearance, congested seaports, opaque tariff regimes, and volatile logistics costs that jointly inflate the landed cost of production inputs. Persistent port dwell times, multiplicity of regulatory agencies at the terminals, foreign exchange volatility, and inconsistent risk-management practices among importers have combined to erode the competitiveness of Nigerian manufacturing and to threaten industrial capacity utilisation. Against this backdrop, the study examines the relationship between customs administration, port efficiency, and logistics risk management in the importation of industrial raw materials into Nigeria. The objectives of the study were to assess the trend and growth of customs revenue and trade volumes between 2018 and 2025, to evaluate Nigeria's port and logistics performance relative to global benchmarks, and to determine the extent to which currency depreciation and logistics inefficiency constitute a risk to industrial raw material imports. The study adopted a quantitative research design anchored on secondary data obtained from the Central Bank of Nigeria (CBN) statistical and economic reports, the National Bureau of Statistics (NBS) Foreign Trade in Goods Statistics, the Nigeria Customs Service (NCS) performance reports, and the World Bank Logistics Performance Index (LPI). Descriptive statistics, trend analysis, compound annual growth rate (CAGR) computation, and Pearson correlation were employed to analyse the data. Findings revealed that although nominal customs revenue grew at a compound annual rate of approximately 31 percent between 2018 and 2024, this growth was almost entirely mirrored by a 30 percent compound depreciation of the naira, with a strong positive correlation (r = 0.95) between the exchange rate and naira-denominated revenue, suggesting that apparent fiscal buoyancy masks underlying trade volume stagnation and heightened import cost risk. Nigeria's logistics performance also remained weak, ranking 88th of 139 countries in 2023 with marginal improvement since 2018. The study recommends port process automation, harmonisation of regulatory agencies, exchange rate hedging instruments for manufacturers, and stronger inter-agency risk-sharing frameworks to reduce logistics risk exposure in Nigeria's industrial raw material import trade.

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