This study is an appraisal of the impact of capital structure on the performance of manufacturing firms in Nigeria. The work attempts to examine the contributions of capital structure on corporate performance. It is prompted by the observation that the capital structure of most companies in Nigeria is sub - optimal and this accounts, in part, for the poor performance of many of the corporati ons, which has led some to liquidation. Data were collected through primary and secondary sources. The methodology involved the construction of multivariate models, which were analyzed using multiple regression and multiple discriminant analyses. The formu lated hypotheses were tested. The results of the models analyzed show that, leverage exerts a significant impact on corporate profitability. We also found that there is a significant tax shield provided when firms undertake leverage. Moreso, there exists a significant relationship between a firm’s corporate performance and its capital structure, and the summary effect of the change in the impact of leverage on profitability with or without corporate taxation, is significant. Factors militating against the e ffective use of capital structure to improve corporate performance include the non - financial characteristics of the firm, the industry - specific shocks, and the institutional environment in which the firm operates. It is recommended that firms should adopt appropriate Debt/Equity ratios depending on their risk peculiarities. Efforts should be made to improve the management of capital structure variables by manufacturing corporations in Nigeria in order to improve their performance. The firms, as a matter of prudence, should establish regulations that encourage them to increase their capital base by adopting appropriate capital structures that will help improve their performance. The significance of this work lies in the finding that firms with better capital structures perform better. Its major contribution to knowledge is that we have been able to develop a capital structure Prediction model useful in the determination of Corporate Performance amongst manufacturing firms in Nigeria. The study has also shown a remarkable departure from other studies on Capital Structure.