Research purpose: The study examined the effect of financial leverage on the financial performance of selected publicly listed Nigerian manufacturing firms. The specific objectives are to; examine the effect of operating leverage on the financial performance and evaluate the effect of consumer leverage on the financial performance of selected publicly listed Nigerian manufacturing firms.
Methodology: A descriptive survey research design was adopted for the study. A structured questionnaire with questions on a yes-or-no basis and a four-point Likert scale was used to collect data. The statistical tools used are exploratory data analysis (respondent demographic statistics) and Chi-square. SPSS 27.0 was used for the analysis.
Findings: Operating leverage has a significant effect on the financial performance (Given that X2 =67.0214 table = 9.488, df = 4). While consumer leverage statistically and significantly affects the financial performance (Given that. X2 = 33.0528, table 5.991 df = 2).
Conclusion: The researchers concluded that financial leverage has a significant effect on the financial performance of selected publicly listed Nigerian manufacturing firms.
Recommendation: It is recommended that Nigerian manufacturing firms should endeavour to adopt tailored leverage optimization strategies that take into account the differential impacts of operating and consumer leverage on financial performance.