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During the last fifteen years, dividend policy experts have enriched their empirical investigations with information that take into account parameters identified as variables that influence the dividend policy of firms in Nigeria. The objective of this paper is to evaluate the effect of dividend policy on corporate performance in Nigeria, using time series data generated from secondary sources through the publications of Nigeria Stock Exchange and financial statements of the companies under review. The study also employed OLS multiple regression analytical techniques to establish the relationships among the variables of dividend policy and the corporate performance of firms in Nigeria. The findings reveal that dividend policy in Nigeria still remains a function of strong dynamic variables such as return on investment(ROI) , earnings per share(EPS)and dividend per share (DPS). An evolving knowledge of the true determinants of dividend policy as a necessary prerequisite should be a long term solution to the inconclusive nature of the debate on the relevance of dividend policy to corporate performance in Nigeria.