The impressive performance was recorded across all sectors of the economy including oil and gas, food and beverage, brewery, cement, conglomerates, agriculture, and construction, excluding commercial banks.

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.

However, despite the above headwinds, overall margins were not adversely impacted, as Pre-tax margins rose to 18.4% (compared to 16% same period last year). The stellar results appear to have been achieved through a combination of frequent price increases, shrinkflation, targeted marketing and sales churn as the Nigerian economy reopened.

Specifically, with regards to reopening, the Federal Government lifted COVID-19 restrictions between May 2020, and finally lifted the border closure in December 2020.

Notably, the positive performance recorded by the companies aligns with second-quarter GDP data which saw Nigeria’s real GDP growth rate rise 5.01%, the fastest in about half a decade.

Whilst most analysts attributed the GDP growth to base effects, it also reflects the wider resilience experienced by corporate Nigeria who have found methods to continuously adapt in a challenging political and economic environment.

Furthermore, depreciating Naira exchange rate and government incentives continue to push up demand for locally produced goods across sectors thus supporting domestic companies who are best placed to meet demand.

Finally, corporate Nigeria has also benefited immensely from a relatively low-interest rate environment and several intervention programmes instituted by the central bank. Allowing them tap into the bond market for short and long-term debt, to source funds required for business expansion and reinvestment whilst increasing prices.

Mobile telecommunication giant, MTN led the table as the highest revenue generating company with revenues of about N1.2 trillion in the first 9 months of the year and profits after tax of N220.3 billion. MTN also paid a tax of N101 billion out of its pre-tax profits.

Nigeria’s cement giant, Dangote Cement came second with a revenue of N1 trillion and a profit after tax of N278.2 billion.

Cement/Construction sector experienced the largest increases in Revenue, Profit-Before-Tax (PBT) and Profit-After-Tax (PAT). Specifically, revenues increased to N1.68 trillion from N1.27 trillion prior year whilst PBT increased to N0.53 billion from N0.36 billion prior year, and PAT increased to N0.39 billion from N0.29 billion prior year.

Consumer Goods sector showed second highest increase in revenues to N1.43 trillion from N1.07 trillion prior year, albeit PBT and PAT growth were subdued reflecting higher costs.

Notably, the breweries sector recovered to post profits in the 2021 period compared to losses before tax and losses after tax in the prior year.

Adjusted for exchange rate devaluations, the picture appears more subdued in impact than earlier highlighted. The current revenue of N5.9 trillion when adjusted for the current official rate of N410/$ is about $14.4 billion. However, the N4.69 in revenues when adjusted using N375/$1 is about $12.5 billion. Using a parallel market rate however, paints a gloomier picture. Nevertheless, most of the companies have faired well despite exchange rate devaluations.