Mountain Top University Library

The study examined the effect of debt financing on firm’s performance in Nigeria Manufacturing sector. The study adopted the random sampling techniques to arrive at the sample size of the study. The secondary data was used in the study. Panel econometric tools were used to analyze the panel data of various companies across sectors in the capital market. The results of the analysis revealed that, short term debt and long term debt have negative and significance impact on the financial performance of listed manufacturing firms in Nigeria Exchange Limited (NXG). The study concluded that debt financing is very important in firm’s financial performance since there is negative and a significant relationship between the variables and then recommended that larger firms should reduce the debt proportion in financing operations in order to increase its financial performance.