Financial ratios constitute a most popular, easy, and useful analytical tool. Analysts often have pre-determined targets with which to compare the performance and judge the financial condition of an organization. In ratio analysis one of such targets is industrial averages. Noting that empirical research has proved the utility of ratios, the study has attempted to develop local industrial averages, by computing the aggregates of individual firm's ratio. The literature review discusses extensively: financial ratios and firm failure prediction, consequently, most of the ten ratios computed are also recommended by researchers on firm failure. Traditionally, the ten ratios fall into - liquidity, profitability, valuation, leverage, and growth ratios. A five point criteria was employed in the choice of ratios:- 1. Representation - that the ratio has a high loading on the factor it represents. 2. Recommendation - that the Nigerian Stock Exchange with its wealth of knowledge of local conditions recommends it. 3. Popularity - the ratio or its inverse is recommended in financial literature. 4. Past performance - that prior studies found the ratio helpful; and 5. Interpretation - that the ratio easily indicates a certain trend in performance. Thirty-five companies (about one third) quoted on the Nigerian Stock Exchange were examined over a five year period: 1978 - 82. With petroleum companies extracted to form a seperate group, five industrial classifications resulted. Computed ratios indicated that sample companies recorded eratic performance with ratios rising and falling indiscriminately. The sales growth ratio indicates that sample companies experienced growth over the period. Finally, the averages agree with financial literature that what is considered optimal elsewhere does not necessarily obtain locally.