Adebawojo Oladipupo Akindehinde, Adegbie Folajimi, Adebawo Owolabi Olutokunbo
Manufacturing companies play major roles in national economic development and growth. For this reason, the Sustainability of such firms is a critical factor for consideration in any economy. However, many of these firms have had to contend with rising cost of production in the resent years, coming as threat to their Financial Sustainability. Hence, this study evaluated the Cost Management effect on the liquidity and Solvency of Nigeria Manufacturing firms. The study Adopted an expost-facto research design based on secondary data extracted from the audited and published financial report of selected manufacturing companies. The study population consisted all 33 manufacturing companies in Nigeria as at December 2019 while the sample size comprised of 10 Foods and Beverages companies selected based on Purposive and Judgmental Sampling Techniques. Validity and Reliability of data obtained were based on the statutory audit of the financial reports. An inferential statistics Multiple Regression Model was used to analyze the data with the aid of Stata Computer Statistical Analysis Software. The results found that Cost Management significantly affected the Liquidity and Solvency as measures of Financial Sustainability of Manufacturing Companies: For Liquidity (Current Ratio), Adj R2 = 0.2425, F- statistics (3.96) = 11.57, P-value <0.05, Acid Test Ratio, Adj R2= 0.2905, F- statistics (3.96) =14.51, P-value <0.05 while for Solvency (Debt Ratio) Adj R2 = 0.082, F-statistics (3.96) = 3.93, P-Value <0.05, Gearing Ratio, Adj R2 = 0.1184, F-statistics (3.96) =5.43, P-value < 0.05, Interest Covered, Adj R2 = 0.0986, F-statistics (3.96) =4.61, P-value < 0.05. From the study we concluded that Cost Management significantly affects Liquidity and Solvency Ratios which ultimately impact on the Financial Sustainability of manufacturing companies. The study recommends that Management of Nigeria Manufacturing Companies consistently review production and operational costs of their firms and adopt relevant cost savings technologies in their firms’ operations so as to remain competitive in an inflationary economy.