ADMINISTRATIVE EXPENSES AND PROFITABILITY OF LISTED MANUFACTURING COMPANIES IN NIGERIA: EMPIRICAL EVIDENCE FROM CHAMPION BREWERIES PLC

The manufacturing industry in Nigeria has faced numerous challenges, including fluctuating raw material costs, foreign exchange volatility and infrastructural deficiencies. As companies strive to enhance their competitive edge, effective management of administrative expenses becomes critical. The effective management of administrative expenses is critical for ensuring profitability and sustainability. This research examined the subject of administrative expenses and the profitability of listed manufacturing companies in Nigeria: Empirical evidence from Champion Breweries Plc. The study employed salaries and wages for administrative personnel, audit fees, medical expenses and other personnel related expenses as well as profit for the year as both independent and dependent variables. The research study deployed ex-post facto research design of the study. The study employed time series analysis method in obtaining the data used for analysis. The time series data covers from 2014-2023 accounting years of Champion Breweries Plc. The study made use of descriptive statistics like frequency tables and simple percentages to analyse data collected and simple linear regression method of analysis was used to test the hypothesis at 0.05% level of significance. Finding among others showed that administrative expenses do not have significant influence on the profitability of listed manufacturing companies in Nigeria proxy as salaries and wages for administrative personnel, audit fees, medical expenses and other personnel related expenses and profit for the year of Champion Breweries Plc for the period under study. Based on this and other findings, the study recommended among others that manufacturing companies must critically assess their administrative spending, seeking to implement cost control measures that do not compromise operational efficiency. Streamlining personnel expenses and optimizing audit and medical costs could lead to enhanced financial performance.