The study evaluates the determinant factors of inventory management practices on the financial performance of listed Paint manufacturing companies in Nigeria. Inventory management practice remains a vital part of a manufacturing concern to be more competitive, hence its efficient and sound management cannot be under estimated. Relevant theories were reviewed in this study for a sound theoretical and empirical foundation. The study population consists of 9 (Nine) listed manufacturing companies in Lagos state of Nigeria, registered with LCCI and NSE as at 2019 for a period of 12 years (2008-2019). Data was collected through primary and secondary sources which was subjected to diagnostic tests. Both descriptive and inferential statistics were used to analyze the panel data through OLS regression method. The overall result of the study indicates that the determinant factors of inventory management are: cost of raw materials, forex rate fluctuations, staff, repair and maintenance, technology and storage costs were more pronounced and significant in the sampled firms of the study. The study therefore recommends that government should help stabilize the forex market to curb fluctuations which act as a major barrier to effective inventory management in Nigeria.