Top 10 companies with the highest income in Nigeria (2022)
With the relaxation of COVID-19 epidemic restrictions and the International Monetary Fund’s (IMF) forecast that Nigeria’s economy will expand by 3.7% in 2022, supported by higher oil prices, a gradual easing of OPEC production cuts, and improved pandemic management, Nigerian companies have seen an increase in revenue, triggering N616.16 billion in profit in the first quarter (Q1) of 2022.
A total of 24 fundamental companies reported N615.16 billion in profit in the first quarter (Q1) ended March 31, 2022, an increase of 21% from the N513.14 billion reported in the first quarter of 2021, despite the easing of lockdown and complete removal of restriction measures on the COVID-19 epidemic. Unaudited financial records for the first quarter of the 24 enterprises showed a large growth in revenue, although total operating expenses increased steadily during the study period due to inflation.
Twelve commercial banks, three cement manufacturers, four Fast-Moving Consumer Goods (FCMG) enterprises, one brewery manufacturer, two petroleum marketing companies, and one construction/telecommunications company make up the 24 companies. The three most lucrative listed firms on the Nigeria Exchange Limited (NGX) by value are Dangote Cement, MTN Nigeria, and Zenith Bank Plc. For instance, Dangote Cement recorded a profit of N105.85 billion in Q1 2022, up nearly 18% from N89.71 billion in Q1 2021, while MTN Nigeria reported a profit of N96.82 billion in Q1 2022, up 31.3% from N73.75 billion in Q1 2021. Additionally, Zenith Bank increased its profit from Q1 2021 to Q1 2022 by about 10%, reaching N58.2 billion (from N53.06 billion). MTN Nigeria Communication, a behemoth in the telecom industry, recorded profit growth of 31.3% to N96.82 billion in Q1 2022 from N73.75 billion in Q1 2021.
Despite growing prices for products and services, this appears to be quite positive for the economy as a whole. But first, let’s look at the top 10 firms (individuals) responsible for Nigeria’s expanding economy.
Top 10 companies with the highest income in Nigeria
- Dangote Cement
With a market worth of N4.35 trillion and a profit after tax of N278 billion in the first nine months of 2021, Dangote Cement is Africa’s largest cement firm. Profit has increased by 33% from N208.6 billion in the first nine months of 2020.
In the first nine months of this year, the company’s earnings per share were N16.23, up from N12.25 in the same period last year. Dangote Cement’s share price was N244.90 at the start of the year, and it has since increased by 4.12 percent.
In the first nine months of 2021, Dangote Cement continued to outperform competitors in the sector to take the top spot for cement efficiency.
The second-most capitalized company on the Exchange is MTN Nigeria, which is also the second-most profitable business in Nigeria. The largest telecom network has a market value of N3.81 trillion and the first-half 2021 profit after tax of N220.3 billion. The corporation reported a 52.74 per cent increase in profit after tax from the same time last year, which was N144.2 billion. Compared to the same period in 2020, the earnings per share for the first nine months of 2021 were N10.82 as opposed to N7.09 in September. MTN’s share price was N169.90 at the start of the year, which has since increased by 10.1 per cent.
- Zenith Bank
The third-most profitable firm is Zenith Bank. The bank has the highest market capitalization and profitability compared to other banks. On November 6, with a market cap of N779.6 billion, it overtook Guaranty Trust Holding Company (GTC0) for the first time in terms of market cap. In the first nine months of 2021, Zenith Bank earned N160.59 billion in profit after taxes. Earnings per share for the period of 2021 were N5.11 from N5.07 in the same time last year, a gain of 0.8 per cent when compared to N159.32 billion in the same period under review of the previous year.
With a profit after tax of N129.4 billion in the first nine months of 2021, GTCO finished fourth in terms of profitability. Comparing this to N142.28 billion in the first nine months of 2020, there has been a decrease of 9.96 per cent. Its market value of it is N753 billion. Guaranty Trust Holding had a share price of N32.35 at the start of the year, but it has already fallen 20.9 per cent from that level. Additionally, the company’s basic earnings per share dropped from N5.02 in the corresponding period of 2020 to N4.54 in the first nine months of 2021.
- BUA Cement
BUA Cement reported that its profit after tax rose from N 53.49 billion in the same period of 2020 to N 65.91 billion in the period ending September 30, 2021, a 23.22 per cent rise. BUA Cement’s share price was N77.35 at the start of the year, but it has already fallen 3.68 per cent from that level. However, compared to the same period the year before, its earnings per share climbed to N195 in the first nine months of 2021 from N158.
Nestle came in fifth place with a profit after tax of N33.5 billion in the nine months ending in September 2021. This represents a 5% improvement over the N31.9 billion realized in the same period of 2020. The value of Nigeria’s largest consumer products company is N1.11 trillion. In the reviewed period, the company’s earnings per share climbed to N14.95 from N12.76 in the comparable period of 2020. Nestle’s share price was N1,505 at the start of the year, but it has already fallen 7.31 per cent from that level.
First Bank of Nigeria Holdings, with a market worth of N434 billion, reported a profit of N40.79 billion in the first nine months of 2021, down 40.15 per cent from N68.15 billion in the same period the previous year. FBN’s share price was N7.15 at the start of the year, subsequently increasing by 69.2 per cent. Additionally, the lender’s earnings per share decreased from N1.87 in the comparable period of 2020 to N1.12 in the first nine months of 2021.
In the nine months leading up to the September report of 2021, WAPCO generated a profit of N40.39 billion, an increase of 43 per cent over N28.2 billion in the same period the previous year. The market value of the cement manufacturer was N393 billion. In the first nine months of 2021, WAPCO’s earnings per share climbed to N251 from N175 in the same time the previous year. Lafarge Wapco’s share price was N21.05 at the start of the year, which has since increased by 15.9 per cent.
- Stanbic IBTC
In the first nine months of 2021, Stanbic IBTC had a profit of N39.95 billion, a decrease of 39.6% from N66.16 billion in the same time the previous year. The market capitalization for the lender is N466 billion.
In the first nine months of this year, its earnings per share decreased to N293 from N580 during the previous year’s period. Despite having a share price of N44.05 at the beginning of the year, Stanbic has already lost 18.3 percent of that value.
- Seplat Energy
Despite being the least profitable of the top 10 businesses, Seplat Energy had a profit of N13.90 billion in the first nine months of 2021, compared to a loss of N33.68 billion during the same time in 2020. Seplat Energy’s share price was N402.30 at the start of the year, subsequently increasing by 61.6 per cent. It had a market value of N382.55 billion.
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