This study analyses the effect of liquidity positioning on performance of the Industrial/Domestic products manufacturing companies in Nigeria. It appraises the liquidity level expected for effective organizational performance. The variables studied included: liquidity ratio, sales growth rate and debt ratio selected for this study for the period 2000-2011. The hypotheses were analyzed and tested with the use of Generalized multiple regressions. The findings of the study show that, liquidity positioning had negative and significant relationship with industries profitability. This result is very robust as it confirms the long existing theory that idle funds yields no profits. On the other hand, sales growth rate had positive and non-significant relationship with profitability, while debt ratio had negative and non-significant relationship with profitability of industrial Domestic products manufacturing companies in Nigeria.