Nigeria: Inflation - 12 Companies' Cost of Sales, Opex Up 16.9 Percent to N10.14tn
According to analysis of unaudited results of 12 NGX-listed firms, H1 2026 cost of sales plus operating expenses rose 16.9% to N10.14tn from N8.67tn in H1 2025. Cost of sales was N7.67tn and OPEX N2.47tn. Profit before tax fell to N4.95tn from N2.84tn in 2025, attributed to inflation and FX effects.
How this was made
The 30-second read
Why it matters
It frames a margin and dividend risk for Nigerian listed companies, highlighting that cost growth outpaced inflation and that Oando’s profitability deteriorated materially.
Market read
Traders may use the cost inflation read-through to reassess near-term margin and dividend expectations for Nigeria’s NGX-listed corporates, but the piece is largely thematic and lacks fresh, firm-specific catalysts beyond H1 figures.
What to watch
The article aggregates and discusses unaudited results but provides limited firm-level profit metrics (only Oando’s loss before tax), so investors may be over-weighting cost inflation versus revenue resilience and pricing power.
Background
The article attributes higher H1 2026 cost of sales and OPEX for 12 NGX-listed companies to double-digit inflation and FX movements, plus power, transport, materials, and global supply-chain disruptions.
Ticker impact
Article includes MTN Nigeria Communications Plc among the 12 firms with higher H1 2026 cost of sales and OPEX, citing inflation and power/transport costs.
Watch for margin guidance sensitivity if cost inflation persists post-election.
MTN is named as a top cost/OPEX contributor, but the article does not provide MTN-specific numeric P&L figures.
Market effects
Broad-based cost-of-sales and OPEX inflation across NGX-listed firms implies margin compression risk for Nigeria’s corporate earnings broadly.
FX weakness and global conflict-driven supply-chain strain are cited as cross-border drivers affecting African input costs.
Russia-Ukraine and Middle East conflict are linked to wheat and raw-material cost pressures, reinforcing global inflation spillovers into EM corporates.
Counterpoint
If FX stabilizes and firms can pass through higher costs via pricing, the reported OPEX/cost-of-sales increases may not translate into sustained earnings deterioration.
Key entities
- companyOando Plc
Reported H1 2026 cost of sales of N1.96tn and a loss before tax of N32.84bn.
- companySeplat Energy Plc
Reported H1 2026 cost of sales of N1.38tn and OPEX of N166.36bn.
- companyDangote Cement Plc
Reported H1 2026 cost of sales of N924.31bn and OPEX of N540.5bn.
- companyMTN Nigeria Communications Plc
Named among firms with higher H1 2026 cost of sales and OPEX, driven by inflationary inputs.
- financial_institutionHighcap Securities Limited (David Adnori)
Gave commentary that cost increases reflect global economic unrest and may pressure earnings and dividends.
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