Nigerian Manufacturers Face rising costs amid Economic Pressures – Reports

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The cost of sales for 12 Nigerian manufacturing companies surged to N2.6 trillion in the first half of 2025, representing a 19.68% increase from N2.18 trillion in the same period last year. This rise is attributed to heightened input and operational costs driven by inflation, foreign exchange pressures, and logistics constraints.

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According to financial statements, Dangote Cement Plc recorded the highest cost of sales, with a marginal increase of 2.43% to ₦853.56 billion. Other companies, such as Dangote Sugar Refinery Plc and Nestlé Nigeria Plc, saw significant increases in their cost of sales, rising by 36.38% to N378.53 billion and 27.43% to N356.17 billion, respectively.

The Centre for the Promotion of Private Enterprise’s CEO, Muda Yusuf, identified the volatile exchange rate and high cost of financing as major challenges impacting manufacturers. “The first major challenge manufacturers face is the exchange rate because most of their inputs are imported, whether machinery or spare parts,” he said. “The exchange rate has a huge impact on their costs.”

Yusuf also highlighted the burden of expensive funds, stating, “The second factor is the cost of funds. Financing costs are extremely high, with bank interest rates above 30%. This significantly increases the cost of sales and overall operations.”

The rising costs of sales for Nigerian manufacturers underscore the need for strategic planning and innovative solutions to mitigate the impact of economic pressures and ensure sustainability.

Companies’ Cost of Sales Performance:

– Dangote Cement Plc: N853.56 billion (2.43% increase)

– Dangote Sugar Refinery Plc: N378.53 billion (36.38% increase)

– Nestlé Nigeria Plc: N356.17 billion (27.43% increase)

– BUA Cement Plc: N294.55 billion (15.66% increase)

– BUA Foods Group: N292.03 billion (38.74% increase)

– International Breweries Plc: N219.41 billion (36.62% increase)

– UAC of Nigeria Plc: N82.15 billion (27.28% increase)

– Cadbury Nigeria Plc: N55.39 billion (32.36% increase)

– Nascon Allied Industries Plc: N40.77 billion (43.56% increase)

– Presco Plc: N25.49 billion (13.62% increase)

– FTN Cocoa Processors Plc: N2.03 billion (1,427.52% increase)

– Champion Breweries Plc: N8.05 billion (38.48% increase)

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