Nigeria’s Corporate Giants Reap Reform Windfall as Cash Flows Surge 247% in Three Years
Three years after President Bola Tinubu introduced sweeping economic reforms, Nigeria’s largest listed companies are showing remarkable financial resilience, with operating cash flows rising significantly faster than profits. Data from 27 major firms on the Nigerian Exchange reveals that combined operating cash flows climbed from N1.9 trillion in the first quarter of 2023 to N6.6 trillion in Q1 2026, representing a staggering 247 percent increase. While profits also grew strongly by 165 percent to N3.08 trillion, the sharp rise in cash generation highlights how many corporations have adapted and strengthened their positions amid economic turbulence.
The impressive performance comes despite a challenging business environment marked by currency depreciation, soaring inflation, and higher borrowing costs. Reforms such as fuel subsidy removal and foreign exchange market unification initially triggered widespread disruptions, pushing up transportation, production, and logistics costs. However, many leading firms leveraged their market dominance to pass increased costs to consumers, improve operational efficiency, and boost liquidity. For investors, the surge in operating cash flow is particularly significant because it reflects real cash generated from business activities rather than accounting gains.
Among the standout beneficiaries are cement manufacturers and telecommunications companies. Dangote Cement increased its operating cash flow from N115 billion in Q1 2023 to N591 billion in Q1 2026, while Lafarge Africa and BUA Cement also posted substantial gains. MTN Nigeria emerged as one of the biggest winners outside the banking sector, growing operating cash flow from N256 billion to N764 billion within three years. The telecom giant benefited from rising data consumption, tariff adjustments, and a business model that efficiently converts revenue into cash.
The banking sector recorded some of the most dramatic improvements. Zenith Bank’s operating cash flow surged from N160 billion to N3.7 trillion, while GTCO, Ecobank, Stanbic IBTC, and FCMB also reported significant increases. Higher interest rates, stronger treasury operations, and opportunities created by exchange-rate liberalisation boosted earnings and liquidity across the industry. However, the gains were not uniform, as some institutions, including UBA and First HoldCo, reported negative operating cash flows despite maintaining profitability, highlighting the complexities of banking-sector cash flow movements.
Agribusinesses and consumer goods firms have also begun to benefit from the new economic landscape. Companies such as Presco and Okomu Oil Palm enjoyed stronger demand for locally produced alternatives as imported products became more expensive due to naira depreciation. Meanwhile, Nigerian Breweries, International Breweries, and Dangote Sugar have shown signs of recovery after initially struggling with rising costs and weaker consumer spending. While not every company has emerged stronger, the broader trend suggests that firms with pricing power, strong market positions, and access to dollar-linked revenues have turned Nigeria’s reform era into an opportunity for stronger cash generation and improved financial stability.
source: Business day