STRATEGIC FINANCIAL MANAGEMENT AND VIABILITY OF MANUFACTURING INDUSTRY IN NIGERIA

Abstract

This study utilized an ex-post facto research approach to examine how changes in financial
management methods affected the profitability of manufacturing businesses. The sample for this investigation consists of all Nigerian manufacturing firms that were in operation during the years 2000 and 2019. The information utilized in the study was secondary, and it was gathered from  sources including the Manufacturers Association of Nigeria (MAN) 2020 and the Statistical Bulletin of the Nigerian Stock Exchange (NSE) (now the Nigerian Exchange Group). Estimation of the time series data for the study period was performed using an ordinary least squares (OLS) inferential statistical model. All variables of financial management practices (FMP), including working capital management, capital structure management, and capital budgeting management, were found to have a positive monumental effect on return on asset, leading to the study's conclusion that FMPs have a substantial effect on the viability level of manufacturing corporations. In addition, it was recommended that manufacturing company management study the causes and effects of the connections between various facets of financial management and profitability in order to boost performance by better managing capital structure. To achieve this goal, manufacturers should institute stricter credit
policies and ensure that proper capital planning is ingrained in all aspects of business operations.