The reason for this study stems from the fact that debt management plays an important part in the decision-making process of investors. The population comprised all deposit money banks with both international and national authorization which are listed under the financial sector of the main investment market segment at the Nigerian Stock Exchange (NSE). Using ex-post facto research design and regression design to investigate the effect of debt management on financial performance of deposit money banks in Nigeria. The main tool is the panel least square using the multiple regression model, Statistical evaluation of the global utility of the analytic model so as to determine the reliability of the result obtained were carried out using coefficient of determination (r2), T-test and F-test. Coefficient of Determination (r2) Test. Based on the findings obtained from the results, the study suggests that, Management of Nigerian banks should consider the use of more debt (that is, should have an optimal perspective for short term debt usage) in their capital structure as this will have an automatic effect of reducing the overall cost of capital. Potential of deposit money banks in Nigeria should pay more attention to the trend in the capital structure of deposit money before investing in them because this often determines amount of return that is expected from such banks.
total debt management, financial performance, deposit money banks
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