Organisations that continue to rely on periodic cost-cutting exercises risk weakening their long-term competitiveness, according to Nigeria’s leading accounting firm Kreston Pedabo in a new report that argues many businesses are addressing symptoms rather than structural inefficiencies in their operations.
The report, From Cost Reduction to Cost Transformation: Building a Lean, Resilient Cost Base that Drives Lasting Competitive Advantage, highlights how persistent inflation, foreign exchange volatility, supply chain disruptions and tightening regulatory demands are exposing the limits of traditional cost management approaches.
The report was authored by the firm’s Managing Consultant, Albert Folorunsho, Senior Partner for Tax Compliance and Advisory, Killian Khanoba, Tax Services Partner, Olubunmi Kuteyi, and Management Consulting Lead, Tyna Adediran.
Rather than strengthening organisations, repeated cost-cutting cycles often create a pattern of temporary relief followed by cost relapse. Companies impose hiring freezes, slash discretionary spending and defer investments, only to see expenses gradually return within one to two years. This recurring cycle, the report notes, reflects a deeper failure to redesign how work is done.
