Nigerian Manufacturers Cut Production Costs in H1 2026

In the first half of 2026, major listed manufacturers in Nigeria experienced a reduction in production costs, with aggregate cost of sales decreasing to N3.38 trillion from N3.45 trillion in H1 2025. This occurred alongside a rise in combined revenue from N6.44 trillion to N7.19 trillion, resulting in a notable decline in the input-cost ratio from 53.62 percent to 47.07 percent.

Dangote Sugar reported the most significant improvement, with its cost-of-sales ratio dropping from 88.03 percent to 76.02 percent, despite a revenue decline from N430 billion to N392 billion. BUA Foods also improved its input-cost ratio from 62.85 percent to 52.53 percent.

The cement sector saw substantial gains, with Dangote Cement's input-cost ratio falling from 41.21 percent to 36.78 percent and BUA Cement's from 50.68 percent to 41.47 percent. Overall, these trends indicate enhanced cost efficiency amid a moderating inflation environment in Nigeria.