After two turbulent years of foreign exchange volatility, Nigerian companies are finally breathing easier. A newfound stability in the naira—now trading between N1,483 and N1,540 to the dollar—has triggered a wave of profit recovery among leading listed firms, signaling a turning point for business confidence in Africa’s largest economy.
The numbers tell a compelling story. Analysis of NGX 30 companies shows after-tax profit soaring by 72.7% to N7.6 trillion in the first nine months of 2025, up from N4.4 trillion a year earlier. This broad-based rebound is most pronounced among firms with strong local production and limited exposure to imports—names like Dangote Cement, BUA Foods, MTN Nigeria, Lafarge Africa, and Transcorp Power.
It’s not just profits that are on the rise. With the Monetary Policy Rate holding steady at 27% and inflation cooling to 16.05% in October (down from a peak of 33.88% a year ago), the macroeconomic environment is finally offering support rather than resistance. GDP growth hit 4.23% in Q2, powered by gains in trade, real estate, agriculture, and telecoms.
The impact on individual firms is striking. BUA Foods more than doubled its profit to N405 billion, while Dangote Cement hit a staggering N1 trillion profit mark, its best in five years. MTN Nigeria staged a dramatic comeback, bouncing from a N513 billion loss last year to a N750 billion profit this year, fueled by booming data and fintech revenues.
Analysts say the key driver is stability—both in currency and operating conditions. “The growth is mainly reflective of the stability and slight appreciation of the naira,” noted Tunde Abioye of FBNQuest. “Last year was tough for most firms because of FX losses. As long as the naira remains stable, the outlook is positive, though future growth may moderate after the sharp rebound this year.”
Adebayo Adebanjo of CardinalStone Research agrees, highlighting that revenue growth never really stalled—even during the FX storm. “The biggest drag was always FX losses and high operating costs. With those pressures easing, stronger earnings are likely to continue—although price hikes may slow.”
Resilient sectors like telecoms and consumer goods are leading the charge. MTN’s CEO, Karl Toriola, summed up the new mood: “Our focus is on sustaining the momentum we’ve built, leveraging our broad revenue streams and strong balance sheet to capture growth opportunities.”
As the year winds down, the data is clear: a steadier naira has restored a sense of predictability and profit across Nigeria’s corporate landscape. If the trend holds, businesses and investors alike could find firmer footing for growth in 2026 and beyond.
