Nigeria’s manufacturing sector faced escalating operating costs in 2025, influenced by inflation, foreign exchange volatility, global geopolitical issues, and elevated energy prices. The top 10 manufacturing companies listed on the Nigerian Exchange (NGX) collectively spent N2.24 trillion on their operations during the year.

This figure marks a 3.46% increase compared to the N2.17 trillion spent in 2024. The analysis encompassed 29 listed consumer goods and industrial goods manufacturers.

Across all 29 companies, total operating expenses saw a 4.02% rise, reaching N2.39 trillion in 2025 from N2.30 trillion in the preceding year. The concentration of costs among the largest players is evident, with the top 10 manufacturers alone responsible for 93.80% of the total operating expenses.

The challenging operating environment was exacerbated by rising energy costs. Data from the National Bureau of Statistics (NBS) indicated that the average price of diesel in Nigeria surged to approximately N1,813 per litre in June 2025, up from N1,462.98 per litre in June 2024—a 23.98% year-on-year increase. This rise in fuel costs significantly impacted operating expenses, particularly for manufacturers heavily reliant on self-generated power due to unreliable grid electricity.

Breweries, cement producers, and food manufacturers were among the sectors with the highest operating expenditures. Despite revenue growth and improving economic activity, these companies navigated a difficult operational landscape.

Among the top 10 manufacturers ranked by operating expenses in 2025, PZ Cussons Nigeria Plc recorded N40.59 billion, a significant decrease of 77.65% from the previous year. The company, however, reported revenue growth of 39.66% to N212.63 billion.