Nigerian Manufacturers Cut Production Costs in H1 2026

In the first half of 2026, Nigeria's major listed manufacturers 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, leading to a decline in the input-cost ratio from 53.62 percent to 47.07 percent.

Notably, Dangote Sugar improved its cost-of-sales ratio from 88.03 percent to 76.02 percent, reducing costs by N80.5 billion despite a revenue drop. BUA Foods also showed a significant reduction in its input-cost ratio from 62.85 percent to 52.53 percent.

The cement sector saw major 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. This improvement in cost efficiency coincided with a moderation in Nigeria's inflation rate, which fell to 15.43 percent in July 2026.