With the ease of COVID-19 epidemic restrictions, and the International Monetary Fund projection that Nigeria’s economy is expected to grow by 3.7 per cent in 2022, supported by higher oil prices, gradual easing of the Organisation of Petroleum Exporting Countries production cuts and improved management of the pandemic, companies in Nigeria have emerged stronger in revenue and it has trigged N616.16billion profit in the first quarter of 2022.
Dangote Cement, MTN Nigeria, and Zenith Bank Plc are the most profitable listed companies on the Nigeria Exchange Limited by value, according to THISDAY findings. Despite reporting a hike in the cost of sales and operating expenses, the growth in profit by Nigeria’s cement makers, Dangote Cement, Lafarge Africa Plc, and BUA Cement Plc was boosted by the increase in revenue.
The chief executive officer of Dangote Cement, Michael Pucheros in a statement had said: “Our group volumes were down 3.6per cent mainly due to energy supply challenges in Nigeria. Our operations relying on cement and clinker imports – namely Ghana, Sierra-Leone, Cameroon – were impacted by the global supply chain challenges.”
Capital market analyst, Mr. Rotimi Fakeyejo said: “The strong growth across the listed cement manufacturing companies as a result of price increment in the product. The cement manufacturing companies have been compelled to increase the price to preserve margins from the impact of foreign exchange devaluation.”
The Chief executive officer, of the Union Bank of Nigeria, Mr. Emeka Okonkwo in a statement said the bank 2022 renewed its focus on turbocharging productivity and ensuring full leverage of the strength of its digital channels, regional network, and talent to maximise the bottom line. The Chief Executive Officer of Ecobank Group, Ade Ayeyemi stated that the performance was achieved in a difficult operating environment characterised by the strengthening of the US dollar against local operating currencies, high inflation, high-interest rates, and tight labour markets across Africa as the Russia-Ukraine conflict continued to take its toll.
Coronation Research in a report titled “Nigerian Banks: Q1 22 earnings review” said, “Year-to-date, the sector index has returned a disappointing 7.4per cent and has grossly underperformed the broader equity gauge .