The firm’s capital structure decisions, affect profitability of the firms and external financing affects the composition of financing mixture. Using data from the published financial statements and accounts of quoted firms for the period 1999-2012, obtained from Nigerian Stock Exchange.The impact of external financing on return of equity and earnings per share on manufacturing firms in Nigeria were examined. The result of analysis indicates that the use of external financing have negative and non significant impact on return on equity.Also, on earning per share, it had negative and non significant .This indicate that the use of external finacing does not impact positively on the earning per share of Nigerian manufacturing firm. The implication of these decreases on earning per share and return on equity is that wealth is not created. Wealth creations means improvement in the standard of livings on shareholders and will eventually translates to the development of the economy.