Seven listed companies are optimistic that their first-quarter 2025 after-tax profits will rise to ₦58.9 billion, an analysis by BusinessDay shows.
The companies include: FCMB Group, Geregu Power Plc, Eterna Plc, MRS Oil, Custodian Investment Plc, NEM Insurance, and SUNU Assurance Plc.
BusinessDay’s findings reveal that the combined projected after-tax profit for Q1 2024 fell by 6.09 percent from ₦62.7 billion in the same period last year. In Q3 2024, these companies reported ₦62.23 billion.
Among the surveyed companies, FCMB Group is set to lead with an anticipated profit increase to ₦31.9 billion, up from ₦28.7 billion reported in Q1 2024. Similarly, Eterna Plc projects a significant turnaround, forecasting a profit of ₦431 million after a loss of ₦4.06 billion last year. Custodian Investment Plc also anticipates a marginal growth in after-tax profit, expecting ₦11.1 billion compared to ₦10.7 billion in the previous year.
Other firms are less optimistic. Geregu Power Plc expects a profit of ₦14.4 billion, down from ₦15.3 billion. MRS Oil foresees a decline to ₦1.52 billion from ₦1.99 billion, while NEM Insurance projects a significant drop to ₦2.12 billion from ₦10.54 billion. SUNU Assurance Plc profits are also expected to decrease, with projections of ₦601 million, a steep fall from ₦2.39 billion.
Despite the mixed results, Ifeanyi Nwankwo, a financial analyst emphasised the resilience of Nigerian businesses in adapting to economic reforms and leveraging strategic investments. “The anticipated profit growth among leading firms highlights their ability to navigate challenging economic conditions,” Nwankwo stated.
However, despite the positive outlook for these companies, Nwankwo noted that firms continue to face significant challenges such as foreign exchange volatility, regulatory uncertainties, and infrastructure deficits.
Nigeria’s economy showed resilience in Q3 2024, with GDP growth of 3.46 percent compared to 3.19 percent in Q2. However, growth in 2025 is expected to remain sluggish, with Veriv Africa’s 2025 Macroeconomic Outlook projecting a marginal GDP growth rate of 3.64 percent.
The report cites low productivity in critical sectors and weak investment levels as key factors restraining economic expansion. While the services sector will continue to drive growth, it is unlikely to generate substantial employment opportunities.
The macroeconomic report for 2025 paints a challenging picture stating that “Crude oil prices are forecast to average $82 per barrel, with inflation projected to hit 34.52 percent. The naira is expected to trade at N1790 per US dollar in the parallel market, while petrol prices may hover around N1300 per litre, reflecting limited impacts from subsidy reforms, exchange rate adjustments, and the commencement of operations at the Dangote refinery.”
Economic activities in Nigeria have recorded a second consecutive month of contraction, as shown in the November 2024 Purchasing Managers Index (PMI) released by the Central Bank of Nigeria (CBN).
The composite PMI for the month stood at 48.9 index points, signalling a continued decline below the 50.0-point threshold, which separates economic expansion from contraction.
The report highlighted that all components of the composite PMI showed declines, signalling a broad-based slowdown across multiple indicators.
“A closer look at the 36 sub-sectors assessed in the industry, services, and agriculture sectors revealed that only 14 sub-sectors reported growth in economic activities, with transportation equipment leading the growth. However, 22 subsectors registered declines, with transportation and warehousing recording the steepest drop,” the PMI report said.
