Oladipupo Adebawojo
Studies have shown that Cost Management has not been effectively institutionalized in manufacturing companies in Nigeria. This study therefore investigated the effect of cost management on the financial sustainability and performance of manufacturing companies in Nigeria. An expost-facto research design was adopted. The study population included all 33 manufacturing companies in Nigeria as at December 2019 while the sample size consisted 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. Data was analyzed using Multiple Regression. The results revealed that Cost Management without Company Size as control variable significantly affected Financial Sustainability of Manufacturing Companies with Adjduste R2= 0.0941, F-statistics (3.96) = 4.43, P-value < 0.05. On the other hand, with the inclusion of Company Size as control variable, Cost Management maintained significant effect on Financial Sustainability with Adjusted R2= 0.0887, F-statistics (3.96) = 3.41, and P-value <0.05. The results further confirmed that Cost Management also significantly affected Financial Performance proxy by ROCE, NPM, EPS and DPS with Adjusted R2 of 0.1376, F-statistics (3,96) =5.11 and P-value < 0.05. The study concluded that Cost Management affect Financial Sustainability of Manufacturing Companies in Nigeria. Our findings showed that Manufacturing companies’ management should establish formidable cost management strategies that will identify and control all cost drivers such that operational costs are reduced to ensure profitability and enhance financial sustainability of manufacturing companies.