This study explores the implementation of Activity-Based Costing (ABC) in Nigeria’s manufacturing industries, focusing on the challenges encountered, the perceived benefits, and the impact on cost management. Using structured questionnaires distributed to cost accountants and operations managers across 30 manufacturing firms, the research employed both descriptive and inferential statistical techniques, including correlation and regression analyses. The findings reveal a significant positive relationship between ABC implementation and cost management effectiveness, with 42.8% of the variance in cost management explained by ABC adoption. While respondents acknowledged that ABC improves cost traceability, pricing, and decision-making, challenges such as high implementation cost, technical complexity, and inadequate staff competence hinder full adoption. The study concludes that ABC, if adequately supported, can be a powerful tool for strategic cost control in Nigeria’s manufacturing sector. It recommends enhanced training, stakeholder awareness, and IT infrastructure investment to overcome current barriers.