Nigeria’s listed paint manufacturers are beginning to reap the benefits of years of investing in local sourcing, with lower input costs allowing a larger share of revenue to flow to the bottom line despite persistent inflationary pressures.
An analysis of the half-year financial statements of Berger Paints, CAP Plc and Meyer Plc by BusinessDay shows that while production costs continued to rise in absolute terms, they accounted for a smaller proportion of revenue during the first half of 2026.
The combined cost of sales of the three listed paint makers increased to N18.02 billion in H1 2026, from N16.10 billion a year earlier and N7.80 billion in H1 2022. However, revenue grew at a faster pace, rising to N31.73 billion from N28.28 billion in H1 2025 and N12.45 billion four years earlier.
As a result, the industry’s input-cost ratio, measured as cost of sales as a percentage of revenue, fell to 56.8 percent in H1 2026, compared with 65.6 percent in H1 2024, the period when manufacturers faced the combined impact of naira depreciation, soaring import costs, and elevated inflation.
The trend indicates that paint producers now spend about 57 kobo to produce every N1 of revenue, compared with almost 66 kobo two years earlier, leaving a greater proportion of sales available to cover operating expenses, finance costs, and profit.
