As fuel prices continue to soar globally, top listed companies in Nigeria spent N207 Billion on energy in the first half of the year (H1).
Top companies by market capitalisation listed on Nigeria Exchange Limited (NGX) saw their energy cost increase by 33.6 per cent in the first half (H1) of 2022. Unlike in the first half of 2021, the top companies expended N155.86 Billion on energy, leaving a difference of N51.14 Billion between the period.
Dangote Cement recorded the highest percentage of energy cost in H1 2022 with a 31.32 per cent increase to N129.97 billion. In H1 2021, Dangote Cement spent N98.97 billion.
It is alarming to note that Dangote Cement’s energy cost made up 40.31per cent of its total production cost of sales in the first half of 2022.
BUA Cement reported a 64.70per cent spike in energy costs in H1 2022 at N43.58 billion. In H1 2021, BUA Cement spent N26.46 billion on energy consumption. The company’s energy consumption accounted for 44.7 per cent of its total cost of production in H1 2022.
Zenith bank’s energy cost increased by 55.27 per cent while GTCO reported a 58.65 per cent increase in energy cost.
Other companies that saw a significant increase in their energy consumption include BUA Foods, Nascon Allied Industries, Fidson Healthcare Plc, GlaxoSmithKline Consumer Nigeria Plc, Dangote Sugar Refinary, Lafarge Cement, BUA Cement.
Energy prices have been on the rise since the beginning of the year. Apart from other local factors, the invasion of Ukraine by Russia also contributed to the global energy crisis.
To mitigate the rising cost of energy, companies are now looking for an alternative source of energy such as solar energy. This however can not guarantee a significant decrease in their energy cost because of the quantity of every they need for production.