Manufacturers’ cost burden eased in Q1, but renewed price pressures raise concerns - Businessday NG

adsManufacturers in Nigeria saw a temporary easing in cost pressures in the first quarter of 2026, offering a modest reprieve after months of elevated production expenses.

But the relief may prove short-lived as rising energy prices and renewed inflationary pressures begin to squeeze input costs again, raising fresh concerns over pricing, profitability, and consumer demand in the months ahead.

An analysis of 19 companies’ first-quarter financial statements shows that the combined cost-to-revenue ratio declined to 46.68 percent in Q1 2026 from 52.50 percent in Q1 2025, indicating that firms spent less of every naira earned on production, despite a difficult operating environment.

The firms are Dangote Cement, Lafarge Africa, BUA Cement, Nestle Nigeria, Unilever Nigeria, Cadbury Nigeria, BUA Foods, Nascon Allied Industries Plc, Dangote Sugar Refinery, and Nigerian Breweries.

Others include International Breweries, Champion Breweries, Guinness Nigeria, CAP Plc, Berger Paints, Beta Glass, Fidson HealthCare Plc, Mecure Industries Plc, and May & Baker.adsads