Inflation: 12 Companies’ Cost of Sales, OPEX Up 16.9% to N10.14tn
Kayode Tokede Following double digit inflation and the exchange rate between the naira and U.S dollars, 12 companies listed on the Nigeria Exchange Limited (NGX), recorded spike in cost of
In the first half of 2026, 12 Nigerian companies listed on the Nigeria Exchange Limited (NGX) reported a significant rise in their cost of sales and operating expenses (OPEX) to N10.14 trillion, marking a 16.9 percent increase compared to N8.67 trillion in the same period of 2025. The analysis of their unaudited results revealed that the companies' cost of sales amounted to N7.67 trillion in H1 2026, a 16.96 percent rise from N6.6 trillion in H1 2025.
Similarly, operating expenses grew to N2.47 trillion in H1 2026, up from N2.2 trillion in 2025. This increase in cost of sales and OPEX surpassed the 15.91 percent inflation recorded by the National Bureau of Statistics (NBS) in June 2026. Despite the strong naira, which closed at N1,380 against the dollar by the end of H1 2026, compared to N1,530 in June 2025, the companies' profit before tax declined from N2.84 trillion in 2025 to N4.95 trillion in H1 2026.
Factors contributing to the rise in cost of sales and OPEX include high power costs, transportation expenses, materials cost, and the global supply chain disruptions caused by the Russia-Ukraine and USA-Israel/Iran conflicts. Among the companies, Oando Plc, Seplat Energy Plc, Dangote Cement Plc, and MTN Nigeria Communications Plc reported the highest cost of sales and OPEX.
Oando Plc, for example, declared a N1.96 trillion cost of sales, a 15.6 percent increase over N1.7 trillion in 2025, and incurred a N32.84 billion loss before tax. Seplat Energy Plc's cost of sales dropped by 2.47 percent from N1.42 trillion in 2025 to N1.38 trillion in H1 2026, while its OPEX decreased by 21 percent from N209.44 billion to N166.36 billion.
Dangote Cement Plc saw an 8.3 percent increase in cost of sales from N853.6 billion in 2025 to N924.31 billion in H1 2026, accompanied by a 21.2 percent rise in OPEX from N445.67 billion to N540.5 billion. Analysts attribute the surge in cost of sales and OPEX to inflation and economic instability, predicting further hikes post-election, which may impact profitability and dividend payouts for shareholders.
Written by urgent.news from This Day's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
