Industrial goods companies listed on the Nigerian Exchange Limited (NGX) spent a combined N820.7 billion on fuel and power in the first nine months of 2026, representing a 6.3% increase from N771.9 billion recorded in the same period of 2025. The rising expenditure has continued to pressure manufacturers’ operating costs and profit margins.Dangote Cement recorded the highest energy expenditure at N580.5 billion, up 2.0% from N569 billion, while BUA Cement’s costs rose 21.5% to N216.6 billion.
Beta Glass and CAP Plc recorded declines of 5.3% and 20.4%, respectively, while Austin LAZ and Co Plc’s energy expenses increased sharply from N50,000 to about N10.9 million. HBM Nigeria reported production variable costs of N226.3 billion without separately disclosing energy expenses.
Economists and investment analysts attributed rising energy costs partly to higher diesel and gas prices, unreliable grid electricity and the Middle East conflict involving the United States and Iran. They warned that manufacturers face higher production expenses, weaker cash flow and limited capacity for expansion, although operational efficiency, economies of scale and higher selling prices could help offset some costs. Meanwhile, MAN reported that manufacturers spent N1.34 trillion on alternative power sources in 2025, while major industrial firms continue relying on captive generation to sustain production.
