CLIMATE CHANGE AND FINANCIAL PERFORMANCE OF PERISHABLE FOOD RETAILERS IN FEDERAL CAPITAL TERRITORY, ABUJA, NIGERIA

Abstract

Climate change presents mounting challenges to global food systems, particularly in developing economies where infrastructural deficits amplify vulnerability. This study examined how climate variability specifically, erratic rainfall, extreme heat, and flooding affect the financial performance of perishable food retailers in Nigeria’s Federal Capital Territory (FCT), Abuja. Employing a mixed-methods approach, data were collected from 150 retailers through structured questionnaires and 20 in-depth interviews across major markets. The instruments were physically administered to the respondents and received accordingly. Quantitative data were analyzed using descriptive statistics, correlation, and multiple regression models, while qualitative data underwent thematic analysis. Results revealed that extreme heat (β = 0.62, p < 0.001) and erratic rainfall (β = 0.18, p < 0.001) significantly affect financial performance, whereas flooding (p = 0.67) showed no statistically significant effect. The model explains 92.7% (R² = 0.927) of the variation in financial outcomes. Retailers reported high spoilage rates, reduced customer turnout during adverse weather, and rising operational costs. Nonetheless, adaptive strategies such as small-quantity purchasing, product diversification, and shared cold storage demonstrate resilience and align with the Resource-Based View (RBV) framework, which emphasizes internal capabilities and dynamic adaptation. The study concludes that climate variability undermines profitability and operational stability but also stimulates innovative responses among small-scale retailers. It recommends investment in climate-smart infrastructure, solar-powered cold storage, and capacity-building programs to enhance adaptation. The study highlights the need for local strategies and supportive policies to strengthen climate adaptation and financial resilience among perishable food retailers in Abuja.