Amid Strong Performance, Operating Expenses of Dangote Cement, BUA, Eight Others Rise 22% to N4.04tn in H1 2025

Operating expenses for Dangote Cement, BUA, and eight other manufacturing companies increased by 22% to N4.04 trillion in the first half of 2025. This rise in expenses was driven by factors such as inflationary pressure, exchange rate volatility, and rising input costs.

The depreciation of the Naira in the foreign exchange market, removal of petrol subsidies, and global supply chain disruptions also played a role. Dangote Cement, BUA Foods, and Nestle Nigeria recorded the highest expenses during this period.

Despite returning to profitability, these companies are still facing challenges due to high import costs and elevated raw material expenses. Analysts predict that the increase in operating expenses may impact earnings and dividend payouts for shareholders in 2025.

The global economic unrest and high inflation rates are contributing to these challenges faced by manufacturing companies in Nigeria and Africa.