Purpose: The objective of this paper is to ascertain the effect of knowledge management on the performance of organizations in Nigerian food and beverage manufacturing sector. Design/Approach/Methodology: To achieve the stated objective, the study used survey research design, with 320 samples from a population of 1587 employees of selected food and beverage firms in Nigeria. A validated questionnaire was used to collect data and structural equation modelling was used to analyze the data. Findings: Results showed that knowledge creation had a significant negative effect on innovation and knowledge sharing had a significant positive effect on innovation. The findings also revealed that knowledge creation has a significant positive effect on job satisfaction while knowledge sharing had an insignificant negative effect on job satisfaction. Practical Implication: The results can be used in efforts to improve the performance of the manufacturing sector in Nigeria and other developing countries by adopting knowledge management initiatives to enhance performance levels. Originality/Value: This study is an original study and it adds to scholarly debate on effect of knowledge management and the performance of manufacturing firms by giving evidence from a developing country. Manufacturing firms can adopt innovation as a channel for knowledge management to boost the performance of their businesses.