The top 10 manufacturing companies on the Nigerian Exchange (NGX) spent a combined N2.24 trillion on operating expenses in 2025.

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This represents a 3.46% year-on-year increase from N2.17 trillion recorded in 2024.

The companies reviewed include listed consumer goods and industrial goods manufacturers, with a total of 29 companies analysed.

Based on their financial statements, analysis of the 29 manufacturing companies showed that total operating expenses rose 4.02% to N2.39 trillion in 2025 up from N2.30 trillion in the previous year.

The top 10 manufacturers alone accounted for 93.80% of the total operating expenses recorded during the period, underscoring the concentration of cost pressure among Nigeria’s largest manufacturers.

More insight

Nigeria’s manufacturing sector grappled with rising operating costs in 2025, as inflation, foreign exchange volatility, global geopolitical tensions, and elevated energy prices pushed expenses higher across major manufacturing companies.

Further analysis showed that breweries, cement producers, and food manufacturers dominated the top end of operating costs. The trend highlights the difficult operating environment manufacturers faced despite stronger revenues and improving economic activity.

At the same time, data from the National Bureau of Statistics (NBS) reported earlier by Nairametrics showed that the average diesel prices in Nigeria rose to about N1,813 per litre in June 2025 from N1,462.98 per litre in June 2024, up 23.98% year-on-year.

This further increased operating costs due to heavy dependence on self-generated power, as grid electricity remained unreliable.

Below are the top 10 listed manufacturing companies, ranked by the amount spent on operations in 2025.

PZ Cussons Nigeria Plc –N40.59bn

PZ Cussons Nigeria Plc recorded operating expenses of N40.59 billion in 2025, a sharp decline of 77.65% from the previous year.

The company also posted revenue growth of 39.66% to N212.63 billion.

This translated to an operating leverage (measured as the difference between revenue growth and operating expense growth) of 117.31%, suggesting significant cost rationalisation and improved expense control as revenue growth far outpaced cost growth. Its OPEX ratio of 19.09% reflects improved cost efficiency within its FMCG operations.

Unilever Nigeria Plc –N49.43 billion

Unilever Nigeria Plc recorded operating expenses of N49.43 billion, up 38.26%.

Revenue grew by 43.32% to N214.30 billion, resulting in operating leverage of 5.07% and an OPEX ratio of 23.07%. This suggests moderate cost absorption, with growth in cost of operations almost matching revenue growth.

BUA Foods Plc –N81.13 billion

BUA Foods Plc reported operating expenses of N81.13 billion, up 16.20%.

Revenue rose by 16.15% to N1.77 trillion, giving an almost neutral operating leverage of -0.05%, indicating tight alignment between revenue and cost growth. The company also recorded the lowest OPEX ratio at 4.57%, reflecting strong scale efficiency.

Guinness Nigeria Plc – N59 billion

Guinness Nigeria recorded operating expenses of N88.21 billion in 2025, representing a 10.02% increase from N85.07 billion in the previous year.

Revenue grew by 13.13% to N471.20 billion from N416.50 billion, resulting in an operating leverage of 9.44% and an OPEX ratio of 18.72%. This indicates that revenue growth outpaced the increase in operating costs during the period.

BUA Cement Plc –N13 billion

BUA Cement Plc recorded operating expenses of N101.13 billion, a 35.60% decline.

Revenue grew by 34.57% to N1.18 trillion, producing a strong operating leverage of 70.16%. This indicates a reduction in operating expenses while revenue grew.

Its OPEX ratio of 8.57% also highlights strong cost discipline relative to revenue generation.

International Breweries Plc –N73 billion

International Breweries Plc recorded operating expenses of N127.73 billion, down 47.88%.

Revenue grew by 26.60% to N619.04 billion, resulting in a strong operating leverage of 74.49% and an OPEX ratio of 20.63%, reflecting improved cost restructuring and efficiency gains.

Nestlé Nigeria Plc –N211.66 billion

Nestlé Nigeria Plc recorded operating expenses of N211.66 billion, up 52.04%.

Revenue increased by 25.97% to N1.21 trillion, resulting in a negative operating leverage of -26.07%, indicating that cost growth significantly outpaced revenue growth. The OPEX ratio of 17.52% remained moderate relative to peers, although the sharp acceleration in operating costs points to increased margin pressure.

Lafarge Africa Plc –N230.18 billion

Lafarge Africa Plc recorded operating expenses of N230.18 billion, up 43.07%.

Revenue rose by 53.04% to N1.07 trillion, producing a positive operating leverage of 9.97% and an OPEX ratio of 21.59%, reflecting moderate efficiency even amid higher energy costs in cement production.

Nigerian Breweries Plc –N364.14 billion

Nigerian Breweries Plc recorded operating expenses of N364.14 billion, up 43.34%.

Revenue increased by 35.32% to N1.47 trillion, resulting in a negative operating leverage of -8.02%, indicating cost growth slightly outpaced revenue expansion. The OPEX ratio of 24.82% remains relatively elevated.

Dangote Cement Plc –N949.25 billion

Dangote Cement Plc recorded the highest absolute operating expenses at N949.25 billion, up 13.02%.

Revenue grew by 20.28% to N4.31 trillion, producing a positive operating leverage of 7.26% and an OPEX ratio of 22.04%, reflecting the company’s ability to absorb rising production costs through scale efficiencies and pricing strength.

What you should know 

Operating costs remain a persistent challenge for Nigeria’s manufacturing sector in 2025, driven by inflation, currency depreciation, high energy costs, and persistent reliance on diesel-powered generation due to weak electricity supply.

Most large-scale manufacturers, such as Dangote Cement, Nigerian Breweries, and Lafarge Africa Plc, demonstrated stronger operating efficiency, supported by scale advantages and cost absorption capacity.

Overall, although operating expenses increased across most companies, those with stronger pricing power, operational restructuring, and scale efficiency were better positioned to manage cost pressures and sustain profitability in 2025.