PRICING POLICY AND PERFORMANCE OF SELECTED MANUFACTURING FIRMS IN NIGERIA

This study investigates the relationship between pricing policy and the performance of selected manufacturing firms in Nigeria. Pricing remains a central element of marketing strategy and firm competitiveness, yet many Nigerian manufacturing firms struggle to adopt efficient pricing mechanisms due to rising costs, intense competition, and macroeconomic instability. Against this backdrop, the study was designed to evaluate how pricing policies affect firm performance indicators such as profitability, sales volume, and market share; to examine the internal and external factors influencing pricing decisions; to identify the challenges confronting Nigerian manufacturers in implementing effective pricing strategies; and to recommend suitable measures for improving pricing to enhance competitiveness. The study adopted a secondary data and case study approach. Firm-level panel data were obtained from the published financial statements of five selected manufacturing firms listed on the Nigerian Exchange Group between 2020 and 2024. The data were analyzed using descriptive statistics, correlation analysis, and regression techniques, with return on assets (ROA), sales growth, and market share serving as proxies for firm performance. Pricing policies were captured through cost-plus, competition-based, and value-based indices. The results Indicate that cost-plus pricing exerts a negative but statistically weak effect on profitability, while competition-based and value-based pricing show insignificant but positive associations with firm performance. Furthermore, the findings reveal that pricing decisions are shaped by both internal factors such as cost structure and pricing objectives, and external factors including inflation, exchange rate volatility, regulatory interventions, and competitive pressures. Key challenges identified include unstable macroeconomic conditions, infrastructural bottlenecks, and weak consumer purchasing power. Strategies recommended include adopting more dynamic, value-driven pricing models, leveraging digital pricing tools, and aligning pricing policies with long-term competitiveness. The study concludes that while pricing policies have mixed effects on the financial performance of Nigerian manufacturing firms, a shift towards innovative, customer-oriented, and flexible pricing strategies is essential for sustaining profitability and competitiveness in the Nigerian manufacturing sector.