EFFECT OF BANK CREDIT ON FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA

Abstract

This study examines the effect of bank credit on financial performance of listed consumer goods companies in Nigeria. The study adopted ex-post facto design by collecting data from annual reports and accounts of listed consumer goods companies in Nigeria for the period ten (10) years (2014 to 2023). The population of the study comprises the entire listed consumer goods companies in Nigeria, the target population becomes the entire 22 consumer goods companies quoted on the Nigerian Exchange Group (NGX) as at 2023. A sample size of 18 consumer goods companies listed on the NGX. Regression was used in analyzing the data. Findings from the study show that Short-term loan (STL) has a positive and significant effect on return on asset (ROA) of listed consumer goods companies in Nigeria while Long-term Loan (LTL) and Total Loan (TL) has a positive and insignificant effect on return on asset (ROA) of listed consumer goods companies in Nigeria. The study recommends among others that the consumer goods companies should focus more on Shot-term loan other than Long-term loan. This is because short-term credit is significant in improving the financial performance of their companies.