Olawore, O. P.1*
Fadayini, O.2
Akinyemi, J. A3
Olowolagba, A. O.4
1Department of Marketing
Lagos State University of Science & Technology, Ikorodu
2Department of Chemical Engineering
Lagos State University of Science & Technology, Ikorodu
3Department of Mathematical Sciences
Lagos State University of Science & Technology, Ikorodu
4Department of Marketing
Yaba College of Technology, Yaba, Lagos
*For correspondence, email: olawore.o@lasustech.edu.ng
Abstract
The oil and gas industry plays a pivotal role in the global energy supply, but is increasingly intertwined with environmental concerns and energy transition challenges. In Nigeria, petroleum product marketing firms face multi-faceted risks, including pipeline vandalism, oil theft, tanker accidents, rising supply costs, and macro-economic pressures such as inflation, currency devaluation, and foreign exchange volatility. This study investigated the effect of riskreduction strategy on the market performance of oil and gas marketing companies in Lagos, Nigeria. A cross-sectional research design was adopted, with 1,044 full-time employees of five selected oil and gas marketing companies constituting the population of the study. A sample size of 362 was calculated using the Krejcie and Morgan formula. Proportionate-stratified and purposive sampling techniques were employed, and data were collected through selfadministered questionnaires. A total of 332 valid responses were retrieved, representing a 91.7% response rate. The data were analyzed using descriptive statistics and simple regression analysis. The findings revealed a significant positive effect of risk-reduction strategy on market performance (β = 0.346, t = 9.432, p < 0.05). The research concludes that effective riskreduction strategy are critical to enhancing market performance in the volatile Nigerian oil and gas downstream sector. It recommends that industry management adopts proactive innovation by integrating alternative energy solutions and developing adaptive frameworks to enhance competitiveness and sustain performance in the rapidly changing environment of Lagos State, Nigeria.
Keywords: Supply chain disruptions, risk-reduction strategy, market performance, oil and gas marketing companies, Nigerian oil and gas industry