Despite the tough operating emvironment in Nigeria, Seplat Energy Plc MTN Nigeria Communications Plc and 19 other companies listed on the Nigerian Exchange Limited (NGX) recorded combined revenue of N6.4 trillion in the first quarter ended March 2025.
The firms’ combined revenue is 63.7 per cent more than the N3.92 trillion recorded in the same period in the first quarter of 2024.
The 21 firms comprise: cement manufacturing companies, telecommunication, power generating, oil & gas, Fast-Moving Consumer Goods (FMCG), among others.
To survive the economic chaos, it was learn that the companies transferred the cost of prices of goods and services in the period under view to their customers which further drove revenue.
Companies operating in Nigeria in 2024 were faced with low purchasing power amid hike inflation that spread across Africa, weakened naira, insecurity and bad road networks that prolonged delivery of goods and services across the country.
The topline performance indicated that the corporates have shaken off the adverse impact of the inflation that contributed to high cost of buying raw materials and weakened purchasing power.
The Stanbic IBTC Nigeria Purchasing Managers’ Index (PMI) for March 2025 reached 54.3, signalling strong private sector growth driven by rising new orders and softer inflation.
The recovery in the Nigerian private sector gathered strength in March 2025, with output, new orders and employment all increasing to greater degrees than in February 2025.
Firms were helped to some extent by softening inflationary pressures, with input costs increasing at the slowest pace since May 2023. The headline figure derived from the survey is the Stanbic IBTC Bank.
Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.
The headline PMI posted 54.3 in March, up from 53.7 in February and above the 50.0 no-change mark for the fourth consecutive month. Moreover, the latest improvement in business conditions in the private sector was solid and the most marked since the start of 2024.
Also, Oil & Gas companies benefited from the federal government’s reforms in the sector, a critical factor that impacted on their revenue. For the cement companies, the hike in prices to an average N10,000/bag boosted revenue
In its unaudited results account posted on the NGX, Seplat Energy during the period under review declared N1.22 trillion revenue, about 356.97 per cent increase over the N268.62 billion declared in corresponding period of 2024.
MTN Nigeria Communications also reported N1.06 trillion revenue in Q1 2025, representing an increase of 40.5 per cent from N752.98 billion reported in Q1 2024.
The CEO of MTN Nigeria Communication, Mr. Karl Toriola said, “We are pleased with our performance in the first quarter of 2025, which reflects the continued execution of our strategic priorities and the resilience of demand for our services. Building on the momentum from Q4 2024, our Q1 results place us firmly on the path to restoring profitability and achieving a positive net asset position within the current financial year, while increasing our investments to improve network and service quality.
“Challenging but improving operating conditions Although macroeconomic uncertainties persist, we are encouraged by the relative stability of the naira during the period and the moderation in inflation following the rebasing of the Consumer Price Index (CPI) in January 2025. The exchange rate remained relatively stable at N1,537/US$ at the end of March 2025, while reported inflation was 24.2 per cent.”
Dangote Cement came third in the top three firm with highest revenue in Q1 2025, generating N994.7billion in Q1 2025, about 22 per cent increase from N817.35billion declared in Q1 2024.
The combined cement manufacturing companies (Dangote Cement, BUA Cement and Lafarge Africa Plc) declared a total revenue of N1.53 trillion in Q1 2025 from N1.12 trillion in Q1 2024, amid hike in price of cement.
Capital market analysts stated that despite facing significant economic challenges such as elevated inflation, a depreciating exchange rate, and ongoing security concerns, these companies have been resilient over the years.
They expressed further that companies operating in Nigeria took advantage of a hike in inflation rate, among others to increase the price of goods and services in 2025, a key element that reflected on revenue.
Commenting, Investment Banker and Stockbroker, Mr. Tajudeen Olayinka said: “Q1 2025 revenue growth is a reflection of Nigeria’s economy. There was an increase in goods & services amid double digit inflation and these companies passed the cost effect to customers that eventually drove their revenue.”
He added that Nigeria companies remain resilient amid growing challenges, even though some were unable to pay dividends but increase their revenue which in years to come, it is expected to impact on profit generation and dividend payout to shareholders.
On his part, Analyst and Managing Director, High Cap Securities Limited, David Adonri stated that: “Nigeria’s economy is witnessing challenges including hike in inflation, security, removal of subsidy, unstable foreign exchange, among other factors that have continued to have mixed performance on revenue generation. However, we should commend these firms for generating a significant increase in revenue and it has outperformed 2024FY results.”
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