Manufacturers’ Energy, Raw Material Costs Hit N1trn in Nine Months
Eight major Nigerian manufacturing firms spent a combined N1.01tn on energy and raw materials in the nine months ending September 30, 2025.
This marks a 21.1 per cent increase from N828.6bn in the same period of 2024, according to their unaudited financial statements.
Energy costs rose to N195.36bn, up 18.7 per cent from N170.51bn a year earlier, while raw materials and consumables climbed to N811.51bn, a 21.7 per cent jump.
The surge reflects persistent inflationary pressures across cement, food, breweries, glass, healthcare, and agribusiness sectors.
BUA Cement reported energy costs of N113.42bn, an 11.8 per cent rise, while consumables grew 27 per cent to N4.44bn. BUA Foods spent N46.45bn on energy, up 25.3 per cent, underscoring rising fuel and power expenses.
International Breweries recorded N260.17bn in materials consumed, a 23.5 per cent increase from 2024. Nigerian Breweries also reported higher input costs, with raw materials and consumables rising 19.5 per cent to N486.88bn.
Beta Glass saw material consumption rise 21.8 per cent to N28.01bn, while energy costs increased modestly by 7.5 per cent to N24.52bn.
Presco Plc faced the steepest jump, with raw materials soaring 178.1 per cent to N25.03bn, highlighting agribusiness cost pressures.
UAC reported electricity and power expenses of N4.87bn, up 22.9 per cent, while Fidson Healthcare’s energy costs rose 30.8 per cent to N3.99bn.
Champion Breweries was one of the few firms to see relief, with energy and water costs dipping slightly by 3.3 per cent.
Industry experts say the rising costs reflect structural challenges. Segun Kuti-George, Vice President of the National Association of Small-Scale Industrialists, noted that energy costs remain high despite interventions such as Band A tariffs.
He explained that policy measures helped prevent sharper fuel price hikes, but long-term stability requires expanding local refining capacity. “Refineries need to come on stream to support what Dangote is already doing,” he said.
Kuti-George stressed that electricity remains the most critical challenge, citing shortages and inefficiencies in distribution. He expressed cautious optimism about current stability but warned that reforms in the power sector are essential for competitiveness.