Customs Logistics and Intermodal Hinterland Transportation and Shippers' Business Performance in Nigeria

Abstract

Abstract This article investigated the effects of customs logistics and intermodal hinterland transport on shippers’ business performance in Nigeria. The article utilized both primary and secondary data. Primary data were acquired by means of a questionnaire survey, and secondary data were taken from the annual reports of the sampled firms. The study’s population consists of 43 manufacturing firms listed on the Nigerian Stock Exchange for over ten years, regularly importing goods via Lagos Seaports. Structured questionnaires were administered to the 43 firms, but only 23 were actually filled out and returned. The Vector Error Correction Model reveals that custom duties assessment and Form M processing negatively impact turnover, cost of sales, and profit, with 10% variations causing 0.15%, 0.17%, and 0.095% impacts respectively. Custom duty assessment duration negatively impacts business performance indicators, with adjustments of 10% affecting turnover, cost of sales, and profit by 0.23%, 0.25%, and 0.25%, respectively. The study reveals a negative correlation between profit and intermodal hinterland transport costs, affecting company profitability. Profit decline by 1.34% as a result of a 10% increase in hinterland transport costs, which also caused an increase in turnover and cost of sales by 1.97% and 3.49%, respectively. The study reveals that customs logistics and intermodal hinterland transport variables jointly account for 71.03, 67.49%, and 64.78% total variations in turnover, cost of sales, and profit respectively.