Effect of asset growth rate on financial performance of firms in Nigeria

• Post by: birpo
• February 17, 2026
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Israel, Godsent Ijeoma Ph.D.

Abstract         

The study examined effect of Asset Growth Rate and on the financial performance of Firms in Nigeria.  Specifically, the study sought to examine the effect of total asset growth rate on the Profit for the year of firms in Nigeria; ascertain the effect of non-current asset growth rate on the To achieve these objectives, five research questions and hypotheses were raised. Relevant conceptual, theoretical and empirical literatures were examined. Ex post facto research design was employed. The data used in this study were sourced from annual reports and accounts of the selected firms. Descriptive statistics and ordinary least Square regression were employed in analyzing the data. The study found that total asset growth rate had a significant effect on the Profit for the year of firms in Nigeria (where t-values of -2.120557 and P-values of 0.0387), that Non-current asset growth rate does significantly affect the Profit for the year of firms in Nigeria (t-value of -3.355982 and P-value of 0.0015). In conclusion, the effect of asset growth rate on the financial performance of oil and gas firms in Nigeria reveals a nuanced relationship. The findings indicate that while asset growth is theoretically crucial for enhancing firm value and operational capacity, it does not significantly impact profitability in the Nigerian oil and gas sector. The study recommended among other things that to enhance profitability, Nigerian firms should strategically manage their total asset growth. This includes optimizing asset utilization, investing in high-return assets, and ensuring efficient allocation of resources.

Keywords:  Asset Growth Rate, Total Asset Growth, Non-Current Asset Growth, Financial Performance, Profitability, Oil and Gas Sector Nigeria.