How to Cite:
Obadimu Gafar Akolawole, Ajibade Ayodeji Temitope, Gbolagade Azeez Mutairu, "Transportation Cost and Financial Performance of Transportation and Logistics Companies Listed in Nigeria" International Journal of Humanities Science Innovations and Management Studies, Vol. 2, No. 6, pp. 22-33, 2025.

Abstract:
The transportation in Nigeria is providing structured and scalable services that support supply chains, facilitate mobility, and drive economic integration. Transportation and logistics are vital to economic development, yet firms in this sector face persistent profitability challenges due to rising operational costs. This study investigates the relationship between transportation cost and the financial performance of listed transportation and logistics companies in Nigeria. Using an ex-post facto research design and panel data from 2020 to 2024, the study uses a purposive sample technique to select a sample of three (3) out of six listed transportation and logistics companies in Nigeria. Descriptive and inferential statistics are employed. The findings reveal that transportation costs constitute a significant portion of total operational expenses and have a measurable impact on financial performance. These results affirm the continued relevance of both the Transportation Cost Theory and Logistics Cost Theory in today’s business environment. The theories remain valid frameworks for understanding how transportation cost structures influence profitability, especially in emerging markets like Nigeria, where operational inefficiencies and infrastructure gaps persist. The study validates the relevance of logistics cost theory and transportation cost theory in explaining how transportation expenses influence firm-level financial outcomes.

Keywords: Earnings per Share, Financial Performance, Logistics, Return on Assets, Transportation Cost.

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