Risk Management and Efficiency of Custom Operations in Nigeria

This study examined the relationship between risk management and efficiency of custom operations in Nigeria. The study was anchored on Systems Theory, Contingency Theory and Institutional Theory. The study adopted survey research design. The population of this study consisted of 605 junior and senior staff of the Nigerian Customs service in Area 1 Command in Port Harcourt and Area 2 Command in Onne, Rivers State. Using Taro Yamane’s formula and simple random sampling, the sample size consisted of 241 personnel of the Nigerian Customs service in Area 1 Command in Port Harcourt and Area 2 Command in Onne, Rivers State. The study made use of primary data and structured questionnaire as the data collection instrument. Frequencies, simple percentages, tables, charts and mean scores were used to analyse the demographic data of the respondents and the research questions while regression technique was used to test the hypotheses at 95% level of confidence (0.05 significant level). The results of the study showed that: Revenue risk, operational risk, security risk and fraud risk have negative and significant impact on the efficiency of custom operations in Nigeria. Hence, management of these risk has a significant impact on the efficiency of custom operations in Nigeria. Based on the findings, the study concluded that risk management plays a vital role in promoting and sustaining efficiency of custom operations in Nigeria. The study recommended among others that government should implement robust anti-corruption frameworks within the Nigeria Customs Service (NCS), including regular audits, strict penalties for corrupt practices, and the establishment of an independent oversight body to monitor customs operations.