This study examined the trend of traffic growth and its resultant effect on supply chain performance on manufacturing firms in Lagos State, Nigeria. The study adopted purposive and simple random sampling technique. Firms along transport congestion corridors were purposively selected. and workers in the selected firms were randomly selected. Sampled firms distributors and customers were also used to gather information regarding supply chain performance. A total number of 225 respondents were randomly sampled from 3,981 workers of two firms to solicit information on how congestion affects supply chain performance, analysis was done using multiple regression analyze. Result shows that all identified variable were statistically significant except goods returned and fuel consumption at p<0.005. From the findings, the study concluded that there is inverse relationship between traffic congestion and supply chain performance. This implied that as traffic congestion increases it have a resultant effect on supply chain performance. Therefore, the study recommended that government and other stakeholders should see congestion as a collective task in order to improve free flow of traffic that would significantly improve supply chain performance both in local and national economy.
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