₦airaland Forum

Lithiumite:
Where is the rice you are producing in Nigeria.... remember same rice was 1,700 at some point, would you kindly acknowledge the marginal drop in price.

BlackViper:
This only covers the financial statements of five of the biggest companies in Nigeria:

MTN Nigeria, Dangote Cement, Seplat Energy, Nestlé Nigeria, and BUA Cement.

In other words, the biggest companies with the largest market capitalisation and the necessary liquidity to survive sluggish economic growth are the ones being highlighted.

Hundreds of small to medium sized companies continue to go out of business and those that don't are operating well below their capacity utilisation.

Estello:
https://nairametrics.com/2025/08/11/nigerian-firms-swimming-in-cash-as-operating-cash-flows-surge-to-all-time-highs/

ivandragon:
Very funny.

Increases are mainly as a result of increase in prices of goods and services rather than an increase in value or purchasing power.

In 2014, a FMGC sold 1m units of a product at N100 p/u leading to a recorded revenue of N100m within a 12 month period.

Fast forward to 2024. That same FMGC sold 500k units of the same product at N500 p/u leading to a revenue of N250m within a 12 month period.

On paper, it looks fantastic, about 110% increase in revenue. But in reality, there is a drop in sales, a 50% drop in sales. It means people are buying less of that product.

The first issue is that it shows a severe drop in purchasing power of people.

Second, there is the issue of underutilisation of resources across board, man and machine. If the company produces less, then it most likely needs less workers, so people are losing jobs. Equipment become underutilised etc.

Third, the cost of production increases significantly, causing the firm to increase price of its products even more.

Fourth, while a Nigerian firm might feel it is making good money, foreign investors would see otherwise. For example, that N100m in 2014 was about $470,000. That N250m in 2024 was about $150,000. For a foreign investor, that is an over 60% loss, and the reason why some foreign firms are closing shop despite making profits in Naira terms.

Bat and his crew continue to use Deception to run government, but the masses are feeling the reality of his failures.

ivandragon:
Very funny.

Increases are mainly as a result of increase in prices of goods and services rather than an increase in value or purchasing power.

In 2014, a FMGC sold 1m units of a product at N100 p/u leading to a recorded revenue of N100m within a 12 month period.

Fast forward to 2024. That same FMGC sold 500k units of the same product at N500 p/u leading to a revenue of N250m within a 12 month period.

On paper, it looks fantastic, about 110% increase in revenue. But in reality, there is a drop in sales, a 50% drop in sales. It means people are buying less of that product.

The first issue is that it shows a severe drop in purchasing power of people.

Second, there is the issue of underutilisation of resources across board, man and machine. If the company produces less, then it most likely needs less workers, so people are losing jobs. Equipment become underutilised etc.

Third, the cost of production increases significantly, causing the firm to increase price of its products even more.

Fourth, while a Nigerian firm might feel it is making good money, foreign investors would see otherwise. For example, that N100m in 2014 was about $470,000. That N250m in 2024 was about $150,000. For a foreign investor, that is an over 60% loss, and the reason why some foreign firms are closing shop despite making profits in Naira terms.

Bat and his crew continue to use Deception to run government, but the masses are feeling the reality of his failures.

Osebanjo:
Theres recapitalization going on in almost the sectors. Every one of them will be fine at the end. Many of them which we believed to be medium/small sized have been able to recapitalize successfully and few that won’t meet up will surely merge. I think investors are putting in more money in the NGX so I doubt many will be closing.

BlackViper:
This only covers the financial statements of five of the biggest companies in Nigeria:

MTN Nigeria, Dangote Cement, Seplat Energy, Nestlé Nigeria, and BUA Cement.

In other words, the biggest companies with the largest market capitalisation and the necessary liquidity to survive sluggish economic growth are the ones being highlighted.

Do we have time business are not closing down?

Hundreds of small to medium sized companies continue to go out of business and those that don't are operating well below their capacity utilisation.

Lithiumite:
All you need do is drop your old ways or leave the business you are into if it's not paying you and seek new opportunities and learn new ways,it's that simple but many of you are too cocky to seek help and would rather remain unproductive and continue to wail for another 6 years!!

ivandragon:
Very funny.

Increases are mainly as a result of increase in prices of goods and services rather than an increase in value or purchasing power.

In 2014, a FMGC sold 1m units of a product at N100 p/u leading to a recorded revenue of N100m within a 12 month period.

Fast forward to 2024. That same FMGC sold 500k units of the same product at N500 p/u leading to a revenue of N250m within a 12 month period.

On paper, it looks fantastic, about 110% increase in revenue. But in reality, there is a drop in sales, a 50% drop in sales. It means people are buying less of that product.

The first issue is that it shows a severe drop in purchasing power of people.

Second, there is the issue of underutilisation of resources across board, man and machine. If the company produces less, then it most likely needs less workers, so people are losing jobs. Equipment become underutilised etc.

Third, the cost of production increases significantly, causing the firm to increase price of its products even more.

Fourth, while a Nigerian firm might feel it is making good money, foreign investors would see otherwise. For example, that N100m in 2014 was about $470,000. That N250m in 2024 was about $150,000. For a foreign investor, that is an over 60% loss, and the reason why some foreign firms are closing shop despite making profits in Naira terms.

Bat and his crew continue to use Deception to run government, but the masses are feeling the reality of his failures.

lexy2014:
you say that no one should complain that the economy is bad because they do not know more than "Global rating agencies like Fitch, Moody’s, and IMF who now rate Nigeria’s outlook positive."

you claim that Buhari's policies completely wrecked the economy.

based on all you said and your criteria for complaining about the economy, do you now know more than world bank and IMF that said wonderful things about Buharis handling of the economy?

gidigbam1:
Ease of doing business has nothing on the economic reforms!!!

Buhari's govt was a disaster we were sure was going to happen. With these reforms in place, in the next 5 years Nigeria'#s economy will be better than all of the African countries economy combined together.

Gboss247:
You are very correct but you view it narrowly.
Tinubu floating of naira devalued the naira, which makes Nigerian products more cheaper in the global market. This means that companies with strategic and visionary management became export-oriented.
Now, if a manufacturer sold 1 million units of a product at N100 to generate N100 million revenue locally in Nigeria, the same manufacturer now sells 50% of it's products in Nigeria and export 50% to foreign countries at a higher price i.e 500,000 units in Nigerian market at N500 to generate N250,000,000 and N1,000 (in USD equivalent) export price per units as par 500,000 to generate N500,000,000 bringing the total revenue to N750,000,000.
Four out of the five companies listed above are multinationals with operations in different companies, so limiting their operations to only Nigeria is surface analysis.

gidigbam1:
Majority of Nigerians sadly do not understand macro economics beyond “how much is rice and garri today,” forgetting that macroeconomics is far deeper covering currency stability, cash flow, debt, productivity, and investor confidence and long-term structural growth. Countries like South Korea and Singapore once endured this short-term hardship we are going through to implement reforms, and today they are economic giants.

As a student of Management Science with in-depth knowledge of macroeconomics, I recall how many of us warned that GEJ’s policies would wreck the economy, and Buhari’s tenure completely did that. When PBAT came in with bold reforms though tough initially we that know were sure that this was the right path. Today’s data shows the economy rebounding, companies generating record cash flows, and the naira stabilizing. This is not luck; it is the outcome of a deliberate strategy that has laid a rock-solid foundation for future growth that could dwarf the combined economies of all the Africa countries in a few years from now.

I didn’t support PO cos beyond his “consumption to production,” slogan, he gave no empirical roadmap or actionable strategy. To those claiming the economy is bad, you don't know better than Global rating agencies like Fitch, Moody’s, and IMF who now rate Nigeria’s outlook positive.

Let’s set politics and ethnic sentiments aside and back PBAT’s transformative agenda as the igbos who control the economy will benefit far better than any tribe once the economy solidifies.

ivandragon:
Your analysis simply further highlights the reason why the policies of government continue to fail because the focus of the reforms is to the benefit of the already rich and political classes who take advantage of the system to the detriment of the masses.

In time, it would make more sense for those companies to divest from Nigeria and export to Nigeria using 3rd party distribution systems since the Nigerian market would no longer be attractive since those companies do not produce specialised products. We have already seen it happen...

https://www.icirnigeria.org/tinubus-one-year-companies-that-have-exited-nigeria/

So contrary to your assertion of my analysis being a 'surface' one, it is actually your view that reflects a myopic position of the situation that excuses incompetence and poor socio-economic management.

Gboss247:
According to you, government policies failed because it focused on the already rich and political class but when it's favours the already-rich and political class from other countries (foreign Investors), it is working abi?
By the way, you went completely off topic.

ivandragon:
That you do not understand how negative economic policies affect the common man does not make my position off topic.

Let me give you an example.

You stated that the companies can make more revenue exporting to cover the reduction in sales in the local market as a result of the 'devaluation' of the currency and drastic reduction in purchasing power of the masses.

Now, have you looked at the ripple effect it would have on small scale businesses?

If sales have reduced locally, it means SMEs that depend on the company that now exports its products will gradually stop operating since less people are buying the product.

If those SMEs fold up, what do you think happens to the workers? Or you are one of those that think that handouts from government are a good substitute for real jobs?

On the other side, the elites have shares in these companies you so happily state are making more money due to the devaluation. The government also makes more revenue which it splurges on itself to buy jets and yatches, and give out ridiculous contracts to cronies without following due process...

So I ask you, in the long run, who benefits from the incompetence of the government? The elites or the masses?

Before you satisfy foreigners, first satisfy your own people.

Gboss247:
SMEs needs to merge and form bigger companies and stop playing SME for years

ivandragon:
You obviously have no idea of how important small businesses are...

https://www.pwc.com/ng/en/assets/pdf/pwc-msme-survey-report-2024.pdf

Gboss247:
You also have idea of how SMEs can merge and form global gaints