Return on Assets of Listed Manufacturing Companies and Government Spending on Power in Nigeria (1999-2015)

Abstract

The focus of this study was on how macro spending of the government on power infrastructure affected the Return on Assets of the manufacturing companies in Nigeria between 1990 and 2015. The study adopted ex-post facto research design. A sample size of 20 was purposively selected from the population of 83 manufacturing companies in the country as at 2016. Secondary data were obtained from published financial statements of listed manufacturing companies in Nigeria, publications of government and the World Bank. Validity and Reliability of the data were based on the reports of external auditors and other regulatory agencies. The data were analyzed using descriptive and inferential statistical methods. The study found that government spending on Power did not have significant effect on the financial performance of the manufacturing firms. Government spending on Power had positive but insignificant effect on ROA (β₁=0.418, t=0.772, p>0.05)