INTEREST RATES DRIVERS AND FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

ABSTRACT The debate on the interest rate drivers has continued unabated over time. This is in view of the importance of interest rates drivers in the attainment of organizational objectives. Different studies have come out with contrasting findings on the effect of interest rate drivers on financial performance. The relationship between interest rate drivers and financial performance is of paramount importance for consumer good firms in Nigeria at a time when interest rate drivers is growing and stakeholders demand for sustainability is increasing Consequently this study was carried out to examine the interest rate drivers and financial performance on using consumers good firms listed in Nigerian Exchange Group. The broad objective of this study was to examine the effect of interest rates drivers on financial performance of listed consumer good firms in Nigeria. The independent variable of the study was interest rate drivers which were proxies by interest rate, inflation rates and credit risk, while the dependent variable was proxies by returns on investment. Ex-post-facto research design was adopted. The population of the study consisted of twenty one (21) listed consumers good firms on the floor of Nigerian Exchange Group while the sample size of nineteen (19) was determined using Taro Yamane formula. The data for the study were extracted from the annual reports and accounts of the sampled firms for the year 2014 to 2024. The data were analyzed with Statistical Packages of Social Sciences E-view 10using descriptive statistics, correlation ordinary least square regression technique. The result of the findings indicates that interest rate has positive significant on return on investment, while inflation rate and credit risk have positive but insignificant effect on return on investment of listed consumers good firm in Nigeria. The study concluded that interest rate drivers were positively significant with interest rate and positively but insignificant with inflation rate and credit risk of listed consumer good firm in Nigeria. Based on the conclusion of study, it was recommended that consumer good firms should obtain facility from the bank when the interest rate is lower, since it has a significant effect on their performance.