Rising Logistics Costs Challenge Nigerian Manufacturers in 2026

In H1 2026, Nigeria's manufacturers are experiencing a significant rise in logistics costs, impacting their financial performance. Dangote Cement reported a 25% increase in selling and distribution expenses, totaling N401.85bn, and a 25.6% rise in haulage costs to N318.60bn.

Revenue grew by 21.3% to N2.51tn. Haulage constituted about 79% of its selling and distribution expenses.

Similarly, Nestlé Nigeria saw a 26.9% increase in marketing and distribution expenses to N93.55bn and a 37.5% rise in freight expenses to N31.58bn. Nigerian Breweries reported a 22.1% increase in selling and distribution expenses to N159.62bn, with revenue growing by only 8.9% to N803.68bn.

The Chartered Institute of Logistics and Transport noted that over 90% of Nigeria's freight movement is by road, exposing manufacturers to challenges such as poor road conditions and rising fuel costs. Despite these pressures, Dangote Cement's profit before tax rose 34.4% to N981.39bn, indicating that companies can manage some cost pressures through pricing and productivity improvements.