Most valuable companies in Nigeria as of Q1 2023

Airtel Africa and MTN Nigeria were the most valuable quoted companies in Nigeria in the first quarter of 2023. Airtel Africa had a market capitalization of N5.56 trillion, while MTN Nigeria had a market capitalization of N4.89 trillion.

The list of most valuable companies also included cement-producing giants, Dangote and BUA Cement, as well as consumer goods producers, BUA Foods and Nestle Nigeria.

Zenith Bank, Geregu Power, Guaranty Trust Holdings, and Seplat Petroleum rounded up the list of the top ten most valuable companies in the country.

The top ten companies on the NGX accounted for a significant chunk of the equities market capitalization. Specifically, the ten companies were valued at N24.09 trillion as of 31st March 2023, accounting for about 82% of the total market value.

How the market performed

The Nigerian stock market rallied by 5.82% in the first quarter of 2023, capitalizing on the gains recorded in the previous year (2022: 19.98%).

• The All-Share Index had opened the year at 51,251.06 basis points and closed the review quarter at 54,232.34 points.
• In the same vein, the market capitalization gained N1.63 trillion between January and March 2023 to close the quarter at N29.54 trillion.
• The market had enjoyed a strong positive start to the year, registering an 8.9% year-to-date gain as of the 9th of March 2023, before it began to decline, reaching 5.82% by the end of the quarter.
• The hike in interest rates announced by the CBN against the backdrop of the fall encouraged investors to allocate their capital to alternative high-yielding fixed-income instruments.

MTN overtakes Dangote Cement to 2nd position

Nigeria’s telco giant, MTN Nigeria overtook Dangote Cement as the second most capitalized company in the Nigerian equities market in Q1 2023.

• MTN Nigeria, which was valued at N4.38 trillion as of the end of 2022, recorded a growth of 11.6% to stand at N4.89 trillion by the end of March 2023, surpassing the 3.4% growth recorded in the share value of Dangote Cement.
• Notably, the market value of Dangote Cement increased from N4.45 trillion at the beginning of the year to close the quarter at N4.6 trillion, representing an increase of N153.4 billion, compared to N508.9 billion for MTN Nigeria.
• However, the second position remains heavily contested between the two companies, as they tend to alternative month-in-month-out.

Telcos remain dominant

The two quoted telecommunication companies in the Nigerian equities market remain the most capitalized companies in the country, jointly accounting for 35.4% of the total market.

• The impressive growth in the valuation of the telcos is not far-fetched, considering the increased usage of internet services across the world and in Nigeria after the COVID-19 pandemic in 2020.
• Mobile and internet subscribers have increased significantly in the last two years. According to data from the Nigerian Communications Commission (NCC), total GSM internet subscribers rose to 156.4 million as of February 2023, compared to 125.7 million as of the end of 2019.
• In the same vein, the telcos have also printed impressive numbers in their financials. MTN Nigeria reported revenue of N2.01 trillion in 2022, an increase of 21.6% from N1.65 trillion recorded in the previous year. Net profit also increased by 21.1% to N361.5 billion.
• Airtel Africa also recorded a 12.1% year-over-year revenue increase for the nine months ended December 2022 to $3.91 billion, although profit after tax only increased marginally by 1.7% to $523 million in the same period.

Biggest gainers              

Tripple Gee and Company led the list of biggest gainers for the review period in terms of percentage as market value surged by 241.8% to N945.4 million, closely followed by International Energy Insurance with 239.5% at N1.17 billion. Neimeth International grew its market capitalization by 128.1% to stand at N3.48 billion as of the end of March 2023.

In terms of absolute value, BUA Foods gained N666 billion to stand at N1.84 trillion, followed by MTN Nigeria, with an increase of N508.8 billion to stand at N4.88 trillion, while Dangote Cement’s market value grew by N153.4 billion to stand at N4.6 trillion.

In summary, the top ten most valuable companies in Nigeria in the first quarter of 2023 were dominated by telecommunications, cement, and consumer goods companies. These companies accounted for a significant chunk of the equities market capitalization, highlighting their importance to the Nigerian economy.

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