MACRO ECONOMIC INDICATORS AND BUSINESS SUSTAINABILITY OF LISTED MANUFACTURING FIRMS IN NIGERIA

Authors

  • Vincent Ayeole Aderobaki Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria. Author
  • Miracle Isaiah Enyichukwu Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria. Author

Keywords:

Business Sustainability, Exchange Rate, Inflation Rate

Abstract

This study examined the effect of macroeconomic indicators on business sustainability of listed manufacturing firms in Nigeria from 2015 to 2024, using return on asset (ROA) of selected industrial and healthcare manufacturing companies as proxy for business sustainability while exchange rate and inflation rate were used as proxies for macro-economic indicators. The study utilized an ex-post facto research design. Time series data were sourced from the Central Bank of Nigeria (CBN) statistical bulletin and annual audited report of the sampled companies. The population of the study consists of all the 20 industrial goods and healthcare manufacturing firms listed on the Nigerian Exchange Group floor as of 31st December 2024, while 13 companies were selected as sample size using purposeful sampling techniques. Ordinary Least Square Regression Analysis was applied in hypotheses testing with the aid of SPSS version 20.0. The findings revealed that exchange rate (EXGR) and inflation rate (INFR) have no significant effect on the return on asset of selected manufacturing firms in Nigeria. It was concluded that, macroeconomic policy has insignificant and negative effects on the business sustainability of industrial goods and healthcare manufacturing companies in Nigeria. Based on the above findings, the study recommends that the government should ensure that the Naira keeps on appreciating against the dollar by ensuring that the Nigerian products become more attractive to the outside world, lowering the exchange rate will impact the manufacturing sector positively, as it will help the sector easily import plants and machinery to support production, the regulatory authorities including the Central Bank of Nigeria should find ways of having stable prices even in moments of crises or economy shocks to shield both the consumers and producers effectively and manufacturers should monitor local and global inflation.

 

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Published

2025-11-02

Issue

Vol. 2 No. 4 (2025): August

Section

Articles

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