BUA, Dangote Cement lead as listed producers’ energy payments hit N820.7 billion

Dangote Cement and BUA Cement accounted for a lot of the N820.7 billion spent on gasoline and energy by NGX-listed industrial items firms within the first 9 months of 2026, as rising vitality prices squeezed producers’ margins.

The unaudited monetary statements for the interval ended September 30 confirmed a 6.3 per cent enhance from N771.9 billion recorded within the corresponding interval of 2025.

Dangote Cement Plc and BUA Cement Plc accounted for the majority of the spending, with their mixed vitality prices rising to N797.1 billion from N747.2 billion, representing a 6.7 per cent enhance.

Dangote Cement, the biggest contributor, reported gasoline and energy bills of N580.5 billion, up two per cent from N569 billion in the identical interval final yr.

BUA Cement recorded a sharper enhance, with vitality prices rising 21.5 per cent to N216.6 billion from N178.2 billion.

Other listed industrial items firms recorded blended outcomes. Beta Glass Plc decreased its vitality expenditure by 5.3 per cent to N23.2 billion from N24.5 billion, whereas Chemical and Allied Products (CAP) Plc reported a 20.4 per cent decline to N30.3 billion from N38 billion.

Austin LAZ and Co Plc, nonetheless, recorded a rise from N50,000 within the first 9 months of 2025 to roughly N10.9 million in 2026.

HBM Nigeria Plc, previously Lafarge Africa, reported manufacturing variable prices of N226.3 billion however didn’t individually disclose its vitality bills.

Economists and funding analysts warned that rising gasoline and electrical energy prices had been including to producers’ manufacturing bills, weakening revenue margins and doubtlessly limiting funding in enterprise enlargement.

Speaking on the event, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, mentioned Nigeria’s energy scenario had deteriorated since February 2026.

He attributed a part of the rise in vitality bills to the Middle East battle involving the United States and Iran, which he mentioned had pushed up diesel and fuel costs.

Yusuf mentioned energy-intensive industries had been notably uncovered due to their heavy reliance on these fuels, including that Nigeria had made restricted progress in bettering grid electrical energy provide.

Similarly, funding strategist and Head of Research at GTI Securities Limited, Abiodun Ogunniyi, mentioned greater vitality prices elevated manufacturing bills, squeezed margins and decreased free money move, doubtlessly constraining producers’ capability enlargement plans.

He, nonetheless, cautioned that elevated vitality expenditure didn’t mechanically translate into decrease profitability, as firms may offset among the stress by means of operational effectivity, economies of scale and better promoting costs.

Major producers have more and more invested in captive energy technology to minimise manufacturing disruptions brought on by unreliable grid provide.

Dangote Cement has at the least 345 megawatts of captive capability throughout its 4 Nigerian crops, whereas BUA Cement operates an estimated 240MW to 280MW. HBM Nigeria has at the least 200MW.

The development additionally poses challenges for electrical energy distribution firms, as giant industrial customers account for a big share of their precious prospects.

Persistent fuel provide disruptions, mounting sector money owed, overseas trade pressures and infrastructure challenges have additional undermined electrical energy technology, forcing producers to spend extra to maintain factories operating.