EFFECT OF HUMAN AND STRUCTURAL CAPITAL EFFICIENCY ON FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA

The study investigates the effect of human and structural capital efficiency on the financial performance of listed manufacturing firms on the Nigeria Exchange Group. Given the significant role of the manufacturing sector in Nigeria's economy, understanding the determinants of financial success within this industry is crucial. This study employs a comprehensive methodology encompassing financial analysis and regression modelling to assess human capital efficiency, considering factors such as cost associated with workforce training, education, innovation and skill development. Additionally, it evaluates structural capital by examining aspects such as value remains in the company from the value addition through technology adoption, infrastructure development, and supply chain management. Return on assets serves as the yardstick for evaluating financial performance. The study examined 66 firms listed on the Nigeria Exchange Group between 2017 and 2021. The findings demonstrate that human and structural capital efficiencies exert a substantial impact on the return on assets of listed manufacturing firms in Nigeria. Enhanced utilization of human capital through targeted training and development initiatives can positively influence financial performance. When employees are skilled and motivated, they are better positioned to enhance productivity and spur innovation. Similarly, optimizing structural capital by investing in modern technology and efficient infrastructure positively impacts the efficiency and effectiveness of manufacturing operations, leading to improved financial outcomes. The study underscores the significance of policy recommendations aimed at promoting the development of human and structural capital in Nigeria's manufacturing sector. These recommendations may involve initiatives to enhance education and skills training, foster technological innovation, and improve infrastructure development.