Eight major manufacturing companies in Nigeria spent a combined N1.01 trillion on energy and raw materials in the nine months ended September 30, 2025, representing a 21.1 per cent increase compared to N828.6 billion recorded in the corresponding period of 2024.
The figures, obtained from an analysis of the firms’ unaudited financial statements, were derived from cost-of-sales disclosures covering energy and consumables across key sectors, including cement, food processing, breweries, glass manufacturing, healthcare, and agribusiness.
A breakdown of the data shows that energy costs alone climbed to N195.36 billion, an 18.7 per cent rise from N170.51 billion recorded a year earlier. Meanwhile, raw materials and other consumables surged to N811.51 billion, up 21.7 per cent from N658.11 billion in 2024, underscoring persistent cost pressures facing manufacturers.
Financial analysts note that cost of sales, also known as cost of goods sold, represents the direct expenses tied to production.
Among the companies reviewed, BUA Cement Plc posted energy expenses of N113.42 billion, up 11.8 per cent from N101.45 billion in 2024, while its consumables bill rose 27 per cent to N4.44 billion. The trend suggests higher production volumes amid sustained input price pressures.
Similarly, BUA Foods Plc recorded a 25.3 per cent jump in energy spending to N46.45 billion, reflecting the strain of rising fuel and power costs, though the firm did not provide a separate breakdown for consumables.
In the brewing segment, International Breweries reported N260.17 billion in materials consumed and production overheads, a 23.5 per cent increase from the previous year. Energy costs were embedded within overheads.
Nigerian Breweries Plc also saw raw material and consumables costs rise by 19.5 per cent to N486.88 billion, reinforcing concerns over inflationary pressures and higher production volumes.
For Beta Glass Plc, material consumption rose 21.8 per cent to N28.01 billion, while energy costs edged up 7.5 per cent to N24.52 billion, indicating only marginal relief despite improved local fuel supply.
In the agribusiness space, Presco Plc recorded one of the sharpest increases, with raw materials soaring 178.1 per cent to N25.03 billion, highlighting mounting input cost burdens in the sector.
UAC of Nigeria disclosed electricity and power expenses of N4.87 billion, a 22.9 per cent increase, alongside higher vehicle maintenance and fuelling costs.
In healthcare manufacturing, Fidson Healthcare Plc posted a 30.8 per cent rise in energy costs to N3.99 billion, reflecting growing energy intensity in pharmaceutical production.
However, Champion Breweries provided a rare bright spot, with energy and water costs declining slightly by 3.3 per cent to N2.11 billion, even as raw materials and consumables jumped 43.5 per cent to N6.98 billion.
Commenting on the development, the National Vice President of the National Association of Small-Scale Industrialists, Segun Kuti-George, said energy remains a major burden on manufacturers despite recent policy measures.
According to him, “Energy costs are still high, even with Band A electricity tariffs, and alternative energy sources remain expensive. But without government interventions, the situation would have been much worse.”
He noted that recent policies helped prevent extreme fuel price spikes, especially during peak demand periods. “There were fears petrol could hit N1,500 per litre, but prices remained relatively stable, even during December,” he said.
Kuti-George stressed that expanding domestic refining capacity is critical for long-term price stability, adding that more refineries must complement existing efforts.
He also identified electricity supply as the most pressing challenge. “There is a real power shortage and serious inefficiencies in distribution. We must boost generation and improve distribution if manufacturers are to stay competitive,” he said.
While expressing cautious optimism about the current economic outlook, he warned that structural reforms in the power sector remain essential to ease the cost burden on Nigerian manufacturers.
