Eight major Nigerian manufacturing firms spent a combined N1.01 trillion on energy and raw materials in the nine months ending September 30, 2025, marking a 21.1% rise from N828.6 billion in the same period of 2024. The data, aggregated from unaudited financial statements, reflects persistent cost pressures across key sectors, including cement, food processing, breweries, glass, healthcare, and agribusiness.
Energy costs alone climbed to N195.36 billion, up 18.7% from N170.51 billion, while raw materials and other consumables reached N811.51 billion, a 21.7% increase from the previous year. Analysts say these figures underscore the rising challenges manufacturers face as fuel, electricity, and raw material prices continue to climb amid ongoing inflationary pressures.
Individual companies reported sharp increases in costs. BUA Cement Plc saw energy expenses rise 11.8% to N113.42 billion, while consumables surged 27% to N4.44 billion. Similarly, BUA Foods recorded a 25.3% jump in energy costs to N46.45 billion, and International Breweries faced a 23.5% rise in materials and overheads. Other notable increases were seen at Nigerian Breweries, Beta Glass, Presco, UAC, and Fidson Healthcare, highlighting how widespread these pressures are across sectors.
Industry experts say interventions have softened the blow, but long-term solutions are needed. Segun Kuti-George, National VP of the National Association of Small-Scale Industrialists, noted that while government measures helped prevent extreme fuel price spikes, electricity shortages and distribution inefficiencies remain critical challenges. He emphasized that expanding local refining capacity and improving the power sector are essential for sustained stability and competitiveness.
Despite the rising costs, Kuti-George expressed cautious optimism. “If not for the interventions, fuel costs could have reached N1,500 per litre. While some progress has been made, manufacturers still face significant challenges in electricity supply, which is vital for production,” he said. The current trend highlights the delicate balance Nigerian manufacturers must navigate between rising input costs and efforts to maintain profitability in a challenging economic environment.
source: punch