Effective Risk Mitigation’s Impact on Imported Goods Logistics to Nigeria: Strategic Lessons from the Iran, United States, and Israel Conflict
- Idowu Oluwafemi Sunday
- DOI: 10.5281/zenodo.22124655
- ISA Journal of Business, Economics and Management (ISAJBEM)
Increasing tensions between Iran, the United States, and Israel have led to
unprecedented disruptions of maritime chokepoints such as the Strait of Hormuz
and Red Sea, resulting in severe economic shocks to developing economies that
rely on seaborne imports, exemplified by Nigeria. This article analyses how
effective risk mitigation strategies can help to address the impact of
distributions to maritime chokepoints on the logistics of imported goods to
Nigeria by employing a mixed-methods approach involving quantitative trade flow
analysis and qualitative assessment of institutional resilience frameworks
drawing on data from the United Nations Conference on Trade and Development
(UNCTAD), World Bank trade statistics, and Nigeria’s National Bureau of
Statics. This study examines the impact of disruptions to key shipping lanes on
Nigeria, whose import logistics rely on maritime transport for 95% of inbound
goods, with shipping cost increases of 205-500% on affected routes, 92%
collapses in fertilizer shipments, and 93% reductions in industrial raw
materials through the Strait of Hurmuz have cascaded to the trade balance and
domestic price stability of Nigeria. Qualitative analysis of systemic
inefficiencies in Nigeria logistics infrastructure point to institutional gaps
that currently cost the economy about $8 billion annually. It shows that risk
mitigation strategies, including route diversification, supplier redundancy,
digital customs modernization, and strategic reserve stockpiling can mitigate
geopolitical supply shocks by 40-60%. The study ends with strategic
recommendations to Nigerian policymakers and logistics operators, highlighting
the need for infrastructure investment, regional trade integration through the
African Continental Free Trade Area (AfCFTA), and predictive risk analytics.
All of which are framed by the theoretical lenses of maritime security and
supply chain resilience theory to add to the body of literature on trade
vulnerability in developing economies during a time of geopolitical
fragmentation.
Keywords: Risk
mitigation, Supply chain resilience, Nigeria imports, Strait of Hormuz,
Maritime logistics, Geopolitical conflict, AfCFTA, Developing economies.