Growth Drivers and Financial Performance of Listed Consumer Goods Firms in Nigeria: Evidence from Turnover, Equity and Total Assets

This article examined the effects of turnover, equity, and total assets on the financial performance of listed consumer goods firms in Nigeria, measured by return on assets (ROA). The study employed a balanced panel of 60 firm-year observations covering five firms listed on the Nigerian Exchange Group (NGX), Nestlé Nigeria Plc, Nigerian Breweries Plc, Unilever Nigeria Plc, Dangote Sugar Refinery Plc and Cadbury Nigeria Plc for the period 2014–2025. Anchored primarily in Resource-Based Theory, the study conceptualises turnover, equity, and total assets as observable indicators of resource accumulation whose contribution to profitability depends on the efficiency with which the underlying resources are deployed. Descriptive statistics, Pearson correlation analysis, variance inflation factor diagnostics, four panel unit root tests, and comparative estimation using pooled ordinary least squares, fixed effects, and random effects models were conducted. The Hausman specification test (χ² = 9.8894, p = 0.0195) favoured the fixed effects model. Subsequent diagnostic tests identified groupwise heteroscedasticity and cross-sectional dependence, necessitating the use of Driscoll–Kraay standard errors. The results indicate that turnover has a strong positive bivariate association with ROA (r = 0.8555) but has no statistically significant independent effect after controlling for equity and total assets (β = 0.0000107, p = 0.9859). Equity has a positive and statistically significant effect on ROA across all model specifications (β = 0.0051, p = 0.0000), whereas total assets exert a statistically significant negative effect (β = −0.0008, p = 0.0090). The selected fixed-effects model explains approximately 76 percent of within-firm variation in ROA. The findings indicate that growth in financial and physical resources does not necessarily translate into improved profitability. Equity accumulation is associated with stronger financial performance, while expansion of the asset base without corresponding improvements in asset utilisation may reduce returns. The study concludes that capital structure and resource deployment are more consequential for profitability than revenue or asset expansion considered in isolation.