MTN, Dangote Cement, 11 Others Outpaced Headwinds, Generated N9.44tn Revenue in 2023

Thirteen companies listed on the Nigerian Exchange Limited (NGX) overcame macroeconomic challenges to generate a combined revenue of N9.44 trillion in 2023, marking a 30.5% increase from N7.23 trillion reported in 2022.

MTN, Dangote Cement, 11 Others Outpaced Headwinds, Generated N9.44tn Revenue in 2023
Photo by Gbenga Onalaja / Unsplash

In 2023, a select group of thirteen companies on the NGX demonstrated resilience against various economic challenges, collectively reporting a revenue of N9.44 trillion, a significant jump from the previous year. Leading this pack were MTN Nigeria and Dangote Cement, which reported substantial revenues amidst adversity.

  • MTN Nigeria topped the chart with N2.47 trillion in revenue, up 23% from N2.01 trillion in 2022. The telecom giant attributed its success to a strong demand for its services across data, voice, Fintech, and digital sectors, despite challenging operating conditions. MTN's strategic initiatives led to a 5.3% increase in mobile subscribers, reaching 79.7 million, and a notable growth in data revenue by 39.8%.
  • Dangote Cement followed closely, generating N2.21 trillion, a staggering 366.44% increase from N1.62 trillion in 2022. The company's growth was propelled by expanding its market share across Africa, with pan-Africa volumes rising by 12.7% to 11.3 metric tons.

Other notable performers included BUA Foods, Totalenergies Marketing Nigeria, and Seplat Energy, among others, spanning sectors like cement production, FMCG, petroleum marketing, household, and telecommunications. For instance, BUA Foods reported a 74% growth in revenue to N728.5 billion, and Totalenergies Marketing Nigeria saw a 31.8% increase to N635.95 billion.

Despite the positive revenue growth, some companies faced challenges impacting their profit before tax, primarily due to the Central Bank of Nigeria (CBN)'s foreign exchange policy and rising operating expenses, which, in some cases, led to the non-payment of dividends to shareholders. The collective profit before tax for the 13 companies stood at N485.25 billion in 2023, down significantly from N1.54 trillion in 2022.

Analysts attribute the mixed performance to various factors, including the depreciation of the naira and increasing overhead costs due to salary increments amidst double-digit inflation rates. The economic environment post-election spending, inflation, and security issues also played a crucial role in shaping the companies' fiscal outcomes.