The article explores how the cost of capital affects how companies in Nigeria finance their growth. The researchers looked at data from 50 manufacturing firms listed on the Nigerian stock exchange. They found that the cost of debt and equity influences how companies raise money, with debt financing being impacted more by these costs. Additionally, the cost of capital has a positive relationship with the financing mix of these firms. The study suggests that companies should carefully consider their capital structure and integrate it with their investment policies to maximize shareholder wealth.