Kayode Tokede
Despite the challenging business environment, Dangote Cement Plc, Airtel Africa Plc, MTN Nigeria Communication Plc, BUA Foods Plc, BUA Cement Plc and six others blue-chip companies contributed about 76.5 per cent to N56.64 trillion overall market capitalisation in nine months of 2024.
Others are: Zenith Bank Plc, Guaranty Trust Holding Company Plc, Geregu Power Plc, Transcorp Power Plc, Oando Plc and Seplat Petroleum Plc
These 11 companies have earned their places in the listed companies’ trillion-naira market cap companies, driven by impressive corporate earnings and dividend payout to shareholders.
As of September 30, 2024, Nigeria’s stock market capitalisation garnered about N15.7trillion to N56.6 trillion with these 11 companies contributing about 76.5 per cent or N43.35trillion.
THISDAY analysis of market data showed Dangote Cement earned the top spot on the list with N9.07 trillion market capitalisation, followed by Airtel Africa with N8.27 trillion market capitalisation and MTN Nigeria recorded N4.01 trillion in market capitalisation as of September 30, 2024.
An investigation by THISDAY revealed that the stock price of Dangote Cement in nine months of 2024 has appreciated by 66 per cent or N 212.1 per share to close at N532 per share as of September 30, 2024 from N319.9 per share it opened for trading this year.
The Cement manufacturing company has gained N3.6 trillion in market capitalisation this year on the backdrop of impressive performance.
Dangote Cement emerged one of the most profitable cement manufacturing companies in Nigeria, generating N292.96 billion profit before tax in half year ended June 2024, about 22 per cent increase from N239.86billiion in half year ended June 2023.
The research by THISDAY revealed that BUA Food recorded N7.11 trillion market capitalisation, and BUA Cement at N3.73trillion.
As of September 2024, Geregu Power, Seplat Energy and Transcorp Power have N2.88 trillion, N2.4 trillion and N2.26 trillion in market capitalisation, respectively.
In addition, GTCO in the banking sector has the highest market capitalisation, currently at N1.4 trillion, followed by Zenith Bank at N1.19trillion and Oando with an estimated N1.03 trillion in market capitalisation as of September 30, 2024.
The recent performance and acquisition of NAOC have play a critical role in the soaring price of Oando.
Stock price of the integrated oil and gas service in nine months of 2024 has appreciated by 687per cent or N72.1 per share from N10.5 per share when it opened 2024 to close September 30, 2024 at N82.6 per share.
Oando towards the end of August 2024 successfully completed its acquisition of Eni’s Nigerian subsidiary, Nigerian Agip Oil Company (NAOC), in a landmark deal valued at $783 million.
The agreement, finalised in a signing ceremony in London, represents a transformative moment for Nigeria’s energy sector and highlights the growing prominence of indigenous players in the industry.
The acquisition, first announced in September 2023, comes precisely a decade after Oando’s landmark $1.8 billion purchase of ConocoPhillips’ Nigerian assets. That previous transaction had significantly boosted Oando’s oil production from approximately 4,500 barrels per day to 50,000 barrels per day.
Analysts told THISDAY that Oando acquisition taste is daring and one of its kind in the oil and gas industry.
Group Chief Executive of Oando, Mr. Wale Tinubu in a statement said, “Today’s announcement marks the culmination of a decade of determination, resilience, and vision.
“This achievement is not just a triumph for Oando but for every indigenous energy company as we redefine our role in the Nigerian energy sector.
“Our focus now shifts to maximising the potential of these assets while supporting the nation’s production goals and exploring new opportunities in clean energy, agriculture, infrastructure, and mining.”
Oando had announced its unaudited 2023 full-year results, showing a 78.9per cent growth in revenues to N3.5 trillion from N1.99 trillion reported in 2022.
Higher sales volumes drove this substantial revenue increase, while the bottom line benefited significantly from foreign exchange gains related to crude oil earnings.
The company posted a profit after tax of N74.7 billion, a stark contrast to the loss of N81.2 billion recorded in the previous year.
Findings showed that these firms are defying the odds by tightening their belts, and applying cost optimisation strategies and innovative solutions to navigate Nigeria’s weak macroeconomic environment and optimise the risk attached to it.
The stock market in 2024 has continued on a positive trajectory, attributable to President Bola Tinubu foreign exchange policies, removal of fuel subsidies that have attracted more foreign investors participation and impressive corporate earnings by listed companies.
The Professor of Capital Market, Nasarawa State University Keffi, Prof. Uche Uwaleke recently expressed that the Nigerian capital market is over-concentrated with the attendant ‘keyman’ risks, part of what are major barriers to market development.
“This is demonstrated by the fact that only seven out of 155 listed companies account for over 60per cent of equities market capitalization,” he said.
“Many eligible companies including multinational companies particularly in the telecom and oil and gas sectors remain unlisted. Out of the over 4 million companies registered by the Corporate Affairs Commission as at 2020, only 155 companies on NGX, and less than 50 on NASD and nine on the NGX Growth Board,” he said.
He, however, recommended that privatized government enterprises be listed on the NGX for the capital market to develop and support the nation’s development.
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