TELEMATICS-DRIVEN STRATEGIC RISK MANAGEMENT FOR SECURING VEHICLE CREDIT FINANCING IN LAGOS STATE

Abstract

This study investigates telematics-driven strategic risk management in securing vehicle credit financing in Lagos State, Nigeria. The study adopted a survey research design. A sample of 286 respondents was drawn from stakeholders in vehicle financing, telematics, and insurance. One hundred and sixty-eight (168) of the respondents were males and one hundred and twelve (112) were females. Four hypotheses were raised and tested using descriptive statistics, Pearson correlation, t-tests, and regression analysis. The findings of the study revealed a significant difference [t (284) = -18.452, p < .01] in default rates of vehicles with telematics monitoring (x̄ =8.42) compared to those without telematics monitoring (x̄= 16.68). Also, telematics adoption was found to significantly predict asset recovery performance (R² = .666, β = .816, p < .001). Furthermore, integrated stakeholder frameworks incorporating telematics data was found to be significantly related intervention effectiveness (r = .789, p < .001). Finally, the result revealed that telematics usage intensity showed a strong positive correlation with portfolio performance metrics (r = .698, p < .001). The combined results affirm the transformative role of telematics in mitigating risk, improving recovery efficiency, and strengthening portfolio outcomes. The study concluded that adopting comprehensive telematics systems and fostering stakeholder integration are essential for effective risk management in vehicle financing. It was recommended that financiers, regulators, and technology providers collaborate to promote cost-effective telematics adoption, strengthen awareness campaigns, and establish supportive policy frameworks that enhance credit security and financial stability in Nigeria’s automotive finance sector.