<b>Effect of Capacity Building on Productivity of Alcoholic Beverages in Nigeria</b> The fast moving pace of business in Nigeria seems to have caught up with the alcoholic beverage sector of the country presumed before now to be controlled by two players. However, with the supply side of value adding employees drying up as our universities are being accused of churning out poorly developed graduates, the demand side may have prompted stiff jostling or even poaching for the few managerial talents available. As a result, looking inwards through capacity building may present a viable way out of the doldrums for all concerned. To address the foregoing challenges, the study therefore examined the effect of capacity building on productivity using the two leading players in the alcoholic beverage manufacturing sector Nigeria Breweries Plc., Lagos and Guinness Nigeria Plc as case study. In line with extant literature capacity building which constituted the independent variable in the study was operationalized in terms of on the job training, off the job training, technological knowledge acquisition and organisational mentorship as its components. Survey design, systematic and stratified sampling techniques were employed to draw a sample of three hundred and sixty 360 respondents comprising 212 58.9 males and 148 41.1 females who participated in the study. Data was collected using validated scales designed for the purpose of this study. Five 5 hypotheses were formulated and tested using simple and multiple regression analysis namely that there is no significant effectss of on the job training, off the job training, technological knowledge acquisition and organisational mentorship on productivity and that there is no significant effect of capacity building on productivity. The results showed that the four dimensions of the independent variable i.e. on the job training, off the job training, technological knowledge acquisition and organisational mentorship effected significantly on productivity in the study population. Furthermore, the multiple regression analysis conducted confirmed these results as capacity building was also found to have effected significantly on productivity. These findings support the notion that enabling employees with the right blend of skills, knowledge, expertise and experience would be in the firm’s best productive interests. The study therefore recommended that as the proverbial geese that lay the golden egg, employees should be exposed to on the job training, off the job training, technological knowledge and organisational mentorship. On the job training, Off the job training, technological knowledge acquisition, organizational mentorship, capacity building, productivity 1773-1784 Issue-3 Volume-3 ESIONE, Uchechukwu Onyeka | Dr. M. N. Okeke