ABSTRACT

This research was carried out as an assessment of the effect of cost reduction techniques on the overall performance of manufacturing companies in Nigeria. A sample size of the 54 manufacturing companies that are quoted on the floor of the Nigerian Stock Exchange (NSE) was used and Iwo of them 7up Bottling Company Nigeria and PZ Nigeria Plc were visited to obtain the data needed for the work. To provide direction to the study, three (3) hypotheses were formulated and attested with correlation analysis and a paired sample 1-test analysis due to the nature of the data obtained. The findings made are that reduction of cost was ideni,fied as one of the indispensable variable means of actualizing the goals of man ufaciuring firms. Also, manufacturing companies can reduce cost by reducing the amount they spend on materials and labour. Also ii was discovered thai manufacturing companies in Nigeria operate a very high cost of production because of economic instability. The researcher on discussing them recommends that evemy manufacturing company through its top management should pay 'unreserved attention to the cost of materials used in production. And also proper system checks and balances should be applied by each department of the company and most impOrtant godly auditors should be employed to audit the accounts of the companies regularly.