By Abiodun Jimoh
Corporate Nigeria brushed aside rising inflation rate and exchange rate crisis to record a surge in revenues and profits.
An analysis of the financial statements of 32 of the most capitalized companies on the stock exchange (excluding commercial banks) revealed the companies recorded aggregate revenue of N5.9 trillion in the first 9 months of 2021 compared to the N4.69 trillion (or 26.0% increase) posted in the same period in 2020.
Corporate profits even did better. The companies collectively posted profits of N756.8 billion compared to N566.1 billion (or 45.1% increase) in the same comparative period respectively.
MTN, Dangote Cement, Flour Mills, Nigeria Breweries Nestle, Total, Julius Berger are some of the companies included in the list . The companies make at least 90% of their revenues from Nigeria and also pay taxes locally.
The impressive performance was recorded across all sectors of the economy including oil and gas, food and beverage, brewery, cement, conglomerates, agriculture, and construction.
These blockbuster results are despite headwinds being experienced in the Nigerian economy, notably rising inflation, spiking unemployment and an exchange rate depreciation forced by the Covid-19 pandemic, crash in oil prices, insecurity and citizens battered by weakening purchasing power.
In addition to macroeconomic conditions, the companies under our data set posted a total pre-tax expense including finance cost of N4.8 trillion up 22.4% year on year