Effect Of Trans-Border Trade On The Performance Of SMES In Selected Local Government Areas Of Adamawa State, Nigeria

This study examined the effect of trans-border trade on the performance of small and medium-sized enterprises (SMEs) in selected local government areas of Adamawa State, Nigeria. Specifically, it investigated the effect of customs procedures on operational efficiency, customer satisfaction, and market share expansion. The study adopted a descriptive and explanatory survey research design, with the population comprising registered and unregistered SMEs engaged in trans-border trade in Mubi North, Mubi South, Fufore, and Toungo Local Government Areas. Using Cochran’s sample size formula, a sample of 422 SMEs was determined. Primary data were collected through structured questionnaires administered to SME owners and managers. Of the 422 questionnaires distributed, 409 were returned, while 10 were rejected, leaving 399 valid questionnaires for analysis. The data were analysed using regression analysis with the aid of SPSS version 27. The findings revealed that customs procedures had a positive and statistically significant effect on operational efficiency (β = 0.537, t = 4.882, p < 0.001) and customer satisfaction (β = 0.677, t = 5.378, p < 0.001). However, customs procedures had a negative and statistically significant effect on market share expansion (β = −0.620, t = −2.870, as reported). The findings suggest that customs procedures can facilitate SMEs’ operational activities and customer service when efficient, whereas cumbersome documentation, lengthy clearance processes, and border delays may constrain access to new markets. The study concludes that improving customs administration is essential for enhancing SME performance in trans-border trade. It recommends simplifying customs documentation, accelerating clearance processes, strengthening digital customs systems, and improving coordination among border agencies to reduce trade-related delays and support the competitiveness and market expansion of SMEs in Adamawa State.