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Can manufacturers keep passing costs to consumers?

When a bag of cement or a tin of milk costs more, the buyer has a choice: pay the new price, buy less or switch to something cheaper. The manufacturer has a choice too: raise the price and risk losing sales, or absorb the higher cost and keep less from each sale.

  • Some Nigerian manufacturers absorbed higher costs while others increased profit margins in 2025.
  • Dangote Cement reported increased sales and reduced costs in the first nine months of 2025 and 2026.

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