After years of holding back, consumer goods firms are opening up their wallets, deploying as much as N476.7 billion in 2025 toward factories, equipment, and supply chain expansion, according to data tracked by BusinessDay. Capital expenditure spending of nine manufacturers listed on the Nigerian Exchange rose from N221.19 billion in 2023 to N351.32 billion in 2024, before surging further to N476.76 billion in 2025, the highest level in five years.
The firms surveyed include Nestle Nigeria, Unilever Nigeria, Cadbury Nigeria, BUA Foods, Nascon Allied Industries, Dangote Sugar Refinery, Nigerian Breweries, International Breweries, and Champion Breweries. The dramatic increase marks a sharp reversal from the period between 2021 and 2023, when total capex declined from N273.93 billion to N211.43 billion, a period characterised by severe foreign exchange shortages, currency misalignment, and rising operating costs that forced companies to prioritise liquidity over expansion.
Kemi Abiodun, consumer goods analyst at CardinalStone Research, said capex spending increased due to ongoing investments in operational efficiency, asset replacement, and supply chain improvements, indicating that companies are no longer in survival mode. She noted that the trend also reflects higher replacement costs driven by inflationary pressures and foreign exchange volatility, as well as periodic catch-up spending on previously deferred maintenance. Nestle, for example, expanded its Golden Morn plant and upgraded vehicles and trade assets at its Agbara facility.
The most dramatic increase came from Nestle Nigeria, whose capex jumped from N5.69 billion in 2023 to N62.6 billion in 2024, before more than doubling to N131.4 billion in 2025. Analysts at CardinalStone described the increase as reflecting ongoing capex initiatives related to strategic capacity expansion plans, which bode well for future earnings growth and manufacturing efficiency. A similar trend is evident in the brewing industry, where competition is intensifying. International Breweries increased capex from N45.7 billion in 2023 to N71.8 billion in 2024 and further to N111.4 billion in 2025, while Nigerian Breweries sustained high investment levels, reaching N140.4 billion in 2024 before easing slightly to N123.8 billion in 2025.
Modupe Arinde, research analyst at Meristem Securities, said the increase in capital expenditure was supported by an improving macroeconomic environment in 2025, with easing inflation and reduced foreign exchange volatility compared to prior years. These conditions made it easier for consumer goods companies to plan and commit to longer-term investments, including the acquisition of property, plant, and equipment. For example, NASCON invested in compressed natural gas trucks in 2025 to lower operating expenses and improve distribution efficiency, leading to a sharp increase in its capex spending from N2.29 billion in 2024 to N23.7 billion in 2025.
The drivers of the current capex surge are both structural and cyclical. Improved macroeconomic visibility has played a key role, as companies gain more clarity on exchange rates and policy direction. Although the operating environment remains challenging, it is less unpredictable than in previous years, allowing firms to plan and execute long-term investments. Inflation, which eased to 15.06 per cent in February from 23.18 per cent a year earlier, has also supported the rise in capex, though the cost of machinery, construction, and imported inputs remains elevated, meaning part of the growth is nominal rather than purely volume-driven.
Companies are also investing to address structural vulnerabilities exposed during the foreign exchange crisis. Localisation of inputs and backward integration have become central strategies, particularly for firms in food processing and manufacturing. By reducing reliance on imported raw materials, companies aim to protect margins and improve supply chain resilience. Dangote Sugar ramped up spending to N44.7 billion in 2025, reflecting continued investment in backward integration projects, while BUA Foods plans to double down on ongoing capacity expansion, aiming for over 50 per cent capacity increase across its business divisions.
Muyiwa Oni, head of equity research, West Africa at Stanbic IBTC Bank, noted that Nigeria’s GDP is estimated to grow by 4.22 per cent in 2026, up from 3.87 per cent in 2025. The sustained disinflationary trend, stability of the naira, expansion of the fast-moving consumer goods market, and new tax laws are seen as enablers of growth. However, risks remain, including energy cost volatility, weakening consumer purchasing power, and foreign exchange exposure. The capex surge represents a structural shift in how companies are approaching growth, moving from survival mode to expansion mode, with significant implications for employment, manufacturing capacity, and economic output.
