By Toba Owojaiye, Deputy Editor
Nigeria’s private sector shows resilience as select corporates defy economic headwinds with record-breaking performances.
Despite inflationary pressures, foreign exchange volatility, and dwindling consumer purchasing power, some Nigerian companies are rewriting the narrative in 2024 with jaw-dropping profits and historic revenues. In the latest episode of Follow the Money with Ugodre, TotalEnergies, BUA Foods, and Unilever emerged as corporate champions—delivering results that reflect strategic adaptation and operational grit.
Leading the charge is TotalEnergies, which stunned the markets with a 140% increase in profit before tax, rising to N42.2 billion from N17.5 billion in 2023. For the first time in its Nigerian operations, the company crossed the N1 trillion revenue threshold—a feat largely powered by the performance of its white products segment.
According to Total’s financials, N830 billion came from the sale of fuel, diesel, and jet fuel, while lubricants contributed N214 billion. But perhaps the most unexpected boost came from a N20 billion debt recovery, showcasing the importance of internal financial discipline.
“This isn’t just a win for Total—it’s a testament to the resilience of the energy sector,” said an oil and gas analyst at Vetiva Capital. “Despite the subsidy removal and forex turmoil, they turned adversity into opportunity.”
In the consumer goods space, BUA Foods confirmed its dominance by posting over N1.5 trillion in revenue. Its flour mills unit alone generated N541 billion, while sugar and pasta contributed N743 billion and N197 billion, respectively. These numbers don’t just signify growth—they redefine market leadership.
The company’s diversified revenue base has proven to be its strongest asset. Analysts say BUA’s vertical integration strategy, especially in sugar refining and flour production, is paying off.
“BUA Foods has become synonymous with food security in Nigeria. They’re not just feeding the market—they’re shaping it,” said Dr. Halima Usman, an economist at the Lagos Business School.
Consumer goods giant Unilever Nigeria may not match the others in absolute figures, but its turnaround story is equally impressive. Revenue soared 44% to N149.5 billion, driven by its nutrition segment (N92 billion) and personal care products (N43.9 billion).
The company’s pre-tax profit stood at N22.6 billion, aided by a 46% increase in finance income, now at N6.8 billion. This comes despite rising input costs and operational challenges tied to inflation.
“In a high-cost environment, Unilever’s performance shows the power of brand loyalty and strategic pricing,” noted Bola Adeyemi, a consumer market analyst. “They held their ground while many competitors faltered.”
Interestingly, while these three firms flourished, others faced severe losses. Telecoms giant MTN Nigeria and consumer titan Nestlé recently reported massive losses, underlining a broader trend of economic divergence. In contrast, cement manufacturers like Dangote, BUA Cement, and Lafarge also posted strong profits, further affirming that infrastructure and staples remain key sectors.
The National Bureau of Statistics (NBS) recently revealed that Nigeria’s GDP growth slowed to 2.5% in Q1 2024, with inflation hovering at 31.7%. Yet, as this earnings season reveals, certain sectors and companies continue to thrive against the odds.
While stakeholders hail these earnings as a beacon of hope, public sentiment is more nuanced. Many Nigerians are asking: if companies are growing this fast, why is the average household still reeling from high food prices, fuel costs, and stagnant wages?
“This shows the disconnect between macroeconomic growth and microeconomic reality,” tweeted @SeyiEconomist, a popular financial commentator. “Corporate profits don’t always translate to broader prosperity—at least, not immediately.”
As the 2024 financial year unfolds, the performance of these companies offers valuable insights for policymakers, investors, and the general public. While not all sectors have been lucky, the ability of firms like TotalEnergies, BUA Foods, and Unilever to adapt and expand in difficult times demonstrates that strategic resilience and operational excellence still matter.
Whether this translates into better wages, improved supply chains, and affordable products for the average Nigerian remains to be seen—but the spotlight is now firmly on the private sector to bridge that gap.