This study examined the profitability implications of capital structure with emphasis on consumer goods
companies quoted on the Nigerian stock exchange for a period of ten years from 2006-2015. Panel data
regression analysis was employed in estimating the variables. The sample size consisted of 15
companies with a total of 150 observations. A key finding of this study was that debts which are long
term in nature have contributed positively to the growth of the consumer goods firms in the last ten
years, while short term debts had negatively affected the firms’ performance. This study recommended
the use of debt in financing the operation of the consumer goods companies. The study further
recommended that long term debts conditions should be made more attractive to consumer goods
companies in Nigeria. This will enhance the production of consumer goods, reduce over dependency on
foreign goods and improve the welfare of shareholders of the firms’.
