Effect of Supply Chain Risk Management on Organizational Performance of Nigeria Liquefied Natural Gas Limited (NLNG)

The performance of Nigeria Liquefied Natural Gas (NLNG) Company, a key player in Nigeria’s economy, is vital for operational efficiency and financial stability in the global LNG market. Supply Chain Risk Management (SCRM), encompassing risk identification, risk assessment, risk mitigation strategies, and risk monitoring and control, is critical for mitigating disruptions and enhancing performance. This study examined the effect of SCRM on NLNG’s performance, measured through operational performance (on-time delivery rate) and financial performance (cost efficiency/reduction and revenue stability). A cross-sectional survey design was adopted, collecting data from 207 management and senior staff across NLNG’s supply chain operations using a structured questionnaire distributed via a census approach. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed for data analysis. Results indicated that risk identification (β = 0.328, p = 0.003), risk assessment (β = 0.154, p = 0.013), risk mitigation strategies (β = 0.226, p = 0.005), and risk monitoring and control (β = 0.252, p = 0.034) significantly and positively influence NLNG’s performance, collectively explaining 76.1% of the variance in performance (R² = 0.761). These findings revealed that robust SCRM practices enhance NLNG’s operational and financial outcomes, though challenges like infrastructure deficits and regulatory instability persist. Recommendations include adopting advanced risk detection technologies, integrating probabilistic risk assessment models, expanding mitigation strategies like dual sourcing, and implementing real-time risk monitoring systems to bolster performance.

Risk Identification, Risk Assessment, Risk Mitigation Strategies, Risk Monitoring and Control, NLNG Performance.

1. Adeleke, A. Q., & Aminu, S. A. (2019). Supply chain disruption in Nigeria oil and gas sector: Some mitigation strategies. International Journal of Supply Chain Management, 8(1), 1–12. https://www.researchgate.net/publication/330970544_Supply_Chain_Disruption_in_Nigeria_Oil_and_Gas_Sector_Some_Mitigation_Strategies [Google Scholar] [Crossref]

2. Afifa, Y. N., & Santoso, I. (2022). Proactive risk mitigation strategies and building strategic resilience in the food supply chain: A review. Food Research, 6(2), 9–17. https://doi.org/10.26656/fr.2017.6(2).257 [Google Scholar] [Crossref]

3. Aghajanian, S. (2018). An empirical procurement risk management framework in supply chain networks: A hybrid approach. Industrial Engineering & Management Systems, 17(4), 730–744. https://doi.org/10.7232/iems.2018.17.4.730 [Google Scholar] [Crossref]

4. Aghajanian, S. (2023). Risk management in liquefied natural gas (LNG) plants: A comprehensive approach for insurers. LinkedIn Pulse. https://www.linkedin.com/pulse/risk-management-liquefied-natural-gas-lng-plants-sean-djalilvand/ [Google Scholar] [Crossref]

5. Ali, I., & Gölgeci, I. (2019). Where is supply chain resilience research heading? International Journal of Physical Distribution & Logistics Management, 49(8), 793–815. https://doi.org/10.1108/IJPDLM-02-2019-0038 [Google Scholar] [Crossref]

6. Aliu Ogbaini, C. (2025). Supply chain management strategies on oil and gas companies performance in Nigeria. Global Wealth University. [Google Scholar] [Crossref]

7. Alkhatib, S. F., & Momani, R. A. (2023). Supply chain resilience and operational performance: The role of digital technologies in Jordanian manufacturing firms. Administrative Sciences, 13(2), 40. https://doi.org/10.3390/admsci13020040 [Google Scholar] [Crossref]

8. Alnoaimi, F. A., & Mazzuchi, T. A. (2021). Risk management application in an oil and gas company for projects. International Journal of Business Ethics and Governance, 4(3), 1–30. https://doi.org/10.51325/ijbeg.v4i3.77 [Google Scholar] [Crossref]

9. Amadi, P. O. (2025). Operational risk management and its influence on productivity in the oil and gas sector. Material Science and Engineering International Research Journal, 13(1), 21–32. https://doi.org/10.5281/zenodo.17192203 [Google Scholar] [Crossref]

10. Ameba, C. S. (2013). The effect of implementing risk management strategies on supply chain performance: A case of Kenya Medical Supplies Agency. European Journal of Business and Management, 5(14), 1–15. [Google Scholar] [Crossref]

11. Andeobu, L., Hettihewa, S., & Wright, C. S. (2015). Risk management in the extractive industry: An empirical investigation of the Nigerian oil and gas industry. Journal of Applied Business and Economics, 17(1), 86–102. [Google Scholar] [Crossref]

12. Animah, I., & Shafiee, M. (2020). Application of risk analysis in the liquefied natural gas (LNG) sector: An overview. Journal of Loss Prevention in the Process Industries, 63, 103980. https://doi.org/10.1016/j.jlp.2019.103980 [Google Scholar] [Crossref]

13. Asikhia, O. U., Makinde, G. O., Akinlabi, H. B., & Olawore, O. P. (2022). Supply chain risk management and business performance of selected oil and gas marketing companies in Lagos State, Nigeria: Moderating role of firms' size. Journal of Procurement & Supply Chain, 6(2), 1–20. https://doi.org/10.47672/jpscm.1174 [Google Scholar] [Crossref]

14. Beckley, J. (2025). Advanced risk assessment techniques: Merging data-driven analytics with expert insights to navigate uncertain decision-making processes. International Journal of Research Publication and Reviews, 6(3), 1454–1471. [Google Scholar] [Crossref]

15. Bigelow, S. J. (2025). What is risk monitoring? Definition and best practices. TechTarget. https://www.techtarget.com/searchcio/tip/What-is-risk-monitoring-Definition-and-best-practices [Google Scholar] [Crossref]

16. Can Saglam, Y., Yıldız Çankaya, S., & Sezen, B. (2020). Proactive risk mitigation strategies and supply chain risk management performance: An empirical analysis for manufacturing firms in Turkey. Journal of Manufacturing Technology Management, 32(6), 1224–1244. https://doi.org/10.1108/JMTM-08-2019-0299 [Google Scholar] [Crossref]

17. Das, M., & Khanapuri, V. B. (2025). Exploring dimensions of project monitoring and control for performance management of the project through a holistic approach: Oil and gas project's perspective. Journal of Engineering and Technology. Advance online publication. https://doi.org/10.1080/10429247.2025.2508583 [Google Scholar] [Crossref]

18. Duong, A. T. B., Hoang, T.-H., Nguyen, T. T. B., Akbari, M., Hoang, T. G., & Truong, H. Q. (2023). Supply chain risk assessment in disruptive times: Opportunities and challenges. Journal of Enterprise Information Management, 36(5), 1372–1401. https://doi.org/10.1108/JEIM-02-2023-0104 [Google Scholar] [Crossref]

19. Faizal, K., & Palaniappan, P. L. K. (2014). Risk assessment and management in supply chain. Global Journal of Researches in Engineering: G Industrial Engineering, 14(2), 19–30. [Google Scholar] [Crossref]

20. Flyvbjerg, B. (2014). What you should know about megaprojects and why: An overview. Project Management Journal, 45(2), 6–19. https://doi.org/10.1002/pmj.21409 [Google Scholar] [Crossref]

21. Ganiyu, S. A., Yu, D., Xu, C., & Providence, A. M. (2020). The impact of supply chain risks and supply chain risk management strategies on enterprise performance in Ghana. Open Journal of Business and Management, 8(4), 1491–1507. https://doi.org/10.4236/ojbm.2020.84095 [Google Scholar] [Crossref]

22. Golobrodska, M. (2024). 7 Basic Types of Supply Chain Risks. Precoro Blog. https://precoro.com/blog/7-basic-types-of-supply-chain-risks/ [Google Scholar] [Crossref]

23. Hatami-Marbini, A., Asu, J. O., Hafeez, K., & Khoshnevis, P. (2024). DEA-driven risk management framework for oil supply chains. *Socio-Economic Planning Sciences, 95*, 101996. https://doi.org/10.1016/j.seps.2024.101996 [Google Scholar] [Crossref]

24. Hosseini, S., Ivanov, D., & Dolgui, A. (2019). Review of quantitative methods for supply chain resilience analysis. Transportation Research Part E: Logistics and Transportation Review, 125, 285–305. https://doi.org/10.1016/j.tre.2019.03.001 [Google Scholar] [Crossref]

25. Ivanov, D., Sokolov, B., & Dolgui, A. (2014). The ripple effect in supply chains: Trade-off 'efficiency-flexibility-resilience' in disruption management. International Journal of Production Research, 52(7), 2154–2172. https://doi.org/10.1080/00207543.2013.858836 [Google Scholar] [Crossref]

26. Jahin, M. A., Naife, S. A., Saha, A. K., & Mridha, M. F. (2025). AI in supply chain risk assessment: A systematic literature review and bibliometric analysis. arXiv. https://doi.org/10.48550/arXiv.2401.10895 [Google Scholar] [Crossref]

27. Jones, S. (2023). Supply chain risk management in the era of globalization. European Journal of Supply Chain Management, 1(1), 11–21. [Google Scholar] [Crossref]

28. Kamalahmadi, M., & Parast, M. M. (2016). A review of the literature on the principles of enterprise and supply chain resilience. International Journal of Production Economics, 171, 116–133. https://doi.org/10.1016/j.ijpe.2015.10.023 [Google Scholar] [Crossref]

29. Khalilzadeh, M., Banihashemi, S. A., Heidari, A., Orazani, S. M. H., & Taebi, P. (2025). Risk management in the production phase of oil and gas projects: Evaluating risk responses and their impact on safety and damage reduction. Discover Civil Engineering, 2(1), 91. https://doi.org/10.1007/s44290-025-00250-8 [Google Scholar] [Crossref]

30. Kiarie, D., Ngugi, P., & Ogollah, K. (2017). Relationship between risk identification management strategy and supply chain performance among manufacturing companies in Kenya. International Journal of Supply Chain and Logistics, 1(2), 101. https://doi.org/10.47941/ijscl.v1i2.156 [Google Scholar] [Crossref]

31. Kilic, H. S., Canbakis, S. K., Karabas, M., Koseoglu, S., Unal, E., & Kalender, Z. T. (2023). Integrated Supply Chain Risk Assessment Methodology Based on Modified FMEA. Journal of Risk Analysis and Crisis Response, 13(2), 93–116. https://doi.org/10.54560/jracr.v13i2.359 [Google Scholar] [Crossref]

32. Maharjan, R., & Kato, H. (2023). Logistics and supply chain resilience of Japanese companies: Perspectives from impacts of the COVID-19 pandemic. Logistics, 7(2), 27. https://doi.org/10.3390/logistics7020027 [Google Scholar] [Crossref]

33. Masood, T., Israr, A., Zubair, M., & Qazi, U. W. (2023). Assessing challenges to sustainability and resilience of energy supply chain in Pakistan: A developing economy from Triple Bottom Line and UN SDGs’ perspective. International Journal of Sustainable Energy, 42(1), 268–288. https://doi.org/10.1080/14786451.2023.2189489 [Google Scholar] [Crossref]

34. McAdoo, J. (2025, April 22). Mastering supply chain risk management: Strategies & solutions. Ivalua. https://www.ivalua.com/blog/supply-chain-risk-management/ [Google Scholar] [Crossref]

35. McGrath, A., & Jonker, A. (2025, February 1). What is supply chain risk management (SCRM)? IBM Think. https://www.ibm.com/think/topics/supply-chain-risk-management [Google Scholar] [Crossref]

36. Ngii, P. M. (2017). Effects of supply chain risk management on organization performance: Case of Accelar Global Logistics [Unpublished master's thesis]. United States International University-Africa. [Google Scholar] [Crossref]

37. Obondi, K. C. (2021). The utilization of project risk monitoring and control practices and their relationship with project success in construction projects. Journal of Project Management, 7, 35–52. https://doi.org/10.5267/j.jpm.2021.7.002 [Google Scholar] [Crossref]

38. Oehmen, J., Olechowski, A., Kenley, C., & Ben-Daya, M. (2014). The effect of risk management on new product development program performance: A review of the literature. IEEE Transactions on Engineering Management, 61(3), 474–486. https://doi.org/10.1109/TEM.2014.2318914 [Google Scholar] [Crossref]

39. Okegbemi, A. C. (2024). Economic environment factors and how they suppress growth and development in Nigeria. Academia.edu. https://www.academia.edu/122486898/Economic_Environment_Factors_and_How_They_Suppress_Growth_and_Development_in_Nigeria [Google Scholar] [Crossref]

40. Santos, C. R. d., de Oliveira, U. R., & Aprigliano, V. (2025). Supplier risk in supply chain risk management: An updated conceptual framework. Applied Sciences, 15(13), 7128. https://doi.org/10.3390/app15137128 [Google Scholar] [Crossref]

41. Saptarini, D. A., & Nainggolan, Y. A. (2022). Risk management in oil and gas field development project with marginal resources: A case in mature field in East Kalimantan. European Journal of Business and Management Research, 7(5), 45–53. https://doi.org/10.24018/ejbmr.2022.7.5.1629 [Google Scholar] [Crossref]

42. Sharma, R., Shishodia, A., Kamble, S., Gunasekaran, A., & Belhadi, A. (2020). Agriculture supply chain risks and COVID-19: Mitigation strategies and implications for the practitioners. International Journal of Logistics Research and Applications, 25(7), 2351–2377. https://doi.org/10.1080/13675567.2020.1830049 [Google Scholar] [Crossref]

43. Zhong, J., & Jia, F. (2025). Supply chain risk transmission monitoring based on graphic evaluation and review technique. Heliyon, 11(1), e41462. https://doi.org/10.1016/j.heliyon.2024.e41462 [Google Scholar] [Crossref]

• The Effectiveness of Logistics Management - A Case Study of: Future Supply Chain Solutions Ltd (FSC)
• The Effect of E-Informing on Procurement Performance of Public Universities in Kenya: The Case of Egerton University
• Barriers to Circular Supply Chain Implementation in Indian Textile SMEs: An Exploratory Qualitative Study
• Sustainable Supply Chain to Enhance the Environmental Performance in the Cleaning Detergents Manufacturing Industry: Case of Harare, Zimbabwe
• Exploring Innovative Frontiers: Digital Public Infrastructure and Multimodal Connectivity as Catalysts for MSME Supply Chain Transformation in India