ABSTRACT:- In this paper, the influence of human resource cost on financial performance of consumer goods companies in Nigeria is being investigated. The objective is to factor out the degree to which financial performance is influenced by investments in human resource, measured by Return on Asset (ROA) of Nigerian Consumer Goods Company. Secondary data were sourced from published annual financial statements of the selected consumer goods company trading on the floor of Stock Exchange in Nigeria, for the period of ten years (10) spanning 2009-2018. In the quest to attain the predetermined objective, data analysis was done using Static Panel Estimation techniques which consisted of Pooled Ordinary Least Square (POLS) Estimator, Fixed Effect Model (FEM), and Random Effect Model (REM). Post Estimation Test (Hausman and Lagrange Multiplier Tests (to compare Panel Effect Result and Panel Random Effect Estimator Result) was used to evaluate Static Panel Estimators. The test was carried out in order to evaluate the most consistent and efficient estimation result. The result of the study showed that predictors pension cost (PEC), director’s emolument (DCM) and gratuity cost (GRT) exerts positive and statistically significant impact on ROA with coefficient value of 0.040940, 0.020521, 0.026541, and p-value of 0.0124, 0.0727, and 0.0379 respectively. Also, the predictor salary and wages (SLW) exerts positive but insignificant impact on ROA with coefficient value of .017615 (p = 0.2905). It is therefore concluded that investment in human resource significantly influenced financial performance and growth of Nigerian consumer goods company, and it is recommended that greater commitment to manpower development, and relevant retirement packages should be designed towards positive performance improvement.

Keywords:- Human Resource Cost, Financial Performance, and Return on Asset.