Nigerian manufacturers are groaning under the weight of heavy cost of production as foreign exchange challenges and epileptic power supply continued to undermine their activities, IgbereTV reports
The analysis of the financial reports of 22 firms listed on the Nigeria Exchange Group (NGX) revealed that the total cost of production for the companies across various categories hit N2.19 trillion in 2021.
This was 30.48 percent higher than the N1.68 trillion production cost incurred by the companies in 2020.
The companies were picked from the cement industry, paint sectors, pharmaceutical industry, and the consumer goods sectors.
When compared to the inflation rate figure, the manufacturing cost was higher than the 18.60 percent inflation rate recorded in June.
This means the company will have to pass costs to customers to cover its lost revenue.
A breakdown of the figure shows that Dangote Cement, BUA Cement, and Lafarge Africa collectively incurred N741.17 billion in total production cost
