Nigerian Corporates Post Mixed 9M-2025 Earnings Amid Macroeconomic Pressures

Nigeria’s corporate sector has displayed a mix of resilience and caution in the nine months ended September 30, 2025, as leading companies navigated high inflation, currency fluctuations, and macroeconomic uncertainty. From banks to telecoms, industrial conglomerates, and energy firms, earnings reports reveal strong growth in some sectors while highlighting structural and operational challenges across others.

Banking Sector: Steady Gains Amid Rising Credit Risks

The banking sector continues to deliver stable revenue growth, although rising costs and credit quality concerns weigh on profitability.

United Bank for Africa (UBA) Plc reported a 2.96% year-on-year (YoY) increase in revenue to N2.47 trillion, driven by higher net interest income, fees, commissions, and trading gains. Profit After Tax (PAT) rose 2.33% to N537.53 billion, supported by a lower tax burden. Analysts credit UBA’s diversified income streams for its ability to maintain steady earnings despite challenging macroeconomic and regulatory conditions.

Access Holdings Plc posted a marginal decline in PAT of 2.2% YoY to N447.50 billion, mainly due to a surge in impairment charges on financial assets, which jumped 141.5% YoY to N350 billion. EPS dropped 35% YoY to N8.00, reflecting an enlarged share base after recapitalisation. Robust net interest income growth of 48.9% YoY to N1.3 trillion helped cushion the impact of rising credit costs.

First Holdco Plc experienced a 13% YoY decline in PAT to N458.08 billion, with EPS down 27.3% to N10.65. Non-interest income tumbled 49.1% YoY due to significant fair value losses, while operating expenses increased nearly 40% YoY, driven by advertising, personnel, maintenance, and AMCON levies. Net interest income, however, surged 71.7% YoY to N1.50 trillion, cushioning the decline in bottom-line performance.

Investor Takeaway: Nigerian banks continue to benefit from higher interest income, but rising impairments, operating expenses, and taxation remain key risks for sustained profitability.

Suggested chart: Banking Sector YoY Revenue and PAT Comparison – UBA, Access Holdings, First Holdco

Telecommunications: MTN Nigeria’s Spectacular Turnaround

The telecom sector recorded one of the standout performances of the period.

MTN Nigeria Communications Plc posted revenue of N3.73 trillion, up 57.41% YoY, while PAT surged 245.97% to N750 billion, reversing a N513.94 billion loss in 2024. The turnaround was underpinned by strong demand for voice and data services, strategic tariff adjustments, and relative foreign exchange stability.

Analysts highlight MTN’s operational discipline, cost management, and ability to navigate macroeconomic headwinds as key drivers of performance. Airtel Africa Plc continues to expand its footprint, though H1 2026 results will provide a clearer view of earnings momentum.

Investor Takeaway: Operational efficiency, pricing adjustments, and demand growth are central to telecom profitability, even in a competitive market.

Suggested chart: Telecoms Revenue Growth YoY – MTN Nigeria vs Airtel Africa

Energy & Industrial Sectors: Resilience Despite Rising Costs

Aradel Holdings Plc reported consolidated revenue of N538.81 billion, up from N377.58 billion YoY. PAT surged 121.67% to N245.13 billion, driven by crude oil, gas, and refined products, including diesel, kerosene, heavy fuel oil, and marine diesel. Analysts attribute growth to operational efficiency, integrated energy strategies, and a moderate rise in Nigeria’s benchmark crude price to $70 per barrel.

Dangote Cement Plc showed steady growth supported by strong domestic demand and operational efficiency. BUA Cement Plc recorded a 47.2% revenue increase to N858.73 billion, with PAT soaring nearly fivefold to N289.86 billion. Gross margins improved to 50%, operating efficiency strengthened, and the debt-to-equity ratio fell to 77.6% from 126.9%, reflecting prudent financial management amid macroeconomic pressures.

Seplat Energies Nigeria Plc and Oando Nigeria Plc maintained stable performance, closely tied to crude price trends, upstream and downstream operational efficiency, and FX dynamics.

Investor Takeaway: Industrial and energy firms are benefiting from strong domestic demand, strategic cost management, and operational integration, even amid rising input costs.

Suggested chart: Energy & Industrial Sector PAT and Revenue YoY – Aradel, Dangote Cement, BUA Cement

Consumer Goods: Operational Efficiency Drives Profitability

Unilever Nigeria Plc posted PAT of N21.98 billion, up 100% YoY, driven by operational efficiency and a recovery in consumer demand.

Nestlé Nigeria Plc achieved moderate growth despite inflation of 18.02% in September 2025. Analysts cite product diversification and strategic pricing as critical to maintaining stable margins.

Investor Takeaway: Consumer goods firms are resilient to inflationary pressures due to strong brand value, operational efficiency, and dynamic pricing strategies.

Suggested chart: Consumer Goods Sector PAT YoY – Unilever vs Nestlé

Cross-Sector Trends and Key Takeaways

1. Banks: Continue to leverage higher interest income, but profitability is sensitive to impairment charges, operational costs, and tax obligations.

2. Telecoms: MTN Nigeria’s turnaround demonstrates the importance of operational efficiency and pricing strategy in navigating macroeconomic pressures.

3. Energy & Industrial: Integrated operations, cost discipline, and strategic pricing support margins despite FX and input cost pressures.

4. Consumer Goods: Operational efficiency and strong demand allow firms to maintain profitability even amid inflation.

Cowry Research emphasizes that investors should carefully monitor asset quality, debt levels, FX volatility, and tax obligations across sectors. Diversification remains key to mitigating risk while capitalizing on growth opportunities in Nigeria’s corporate landscape.

Macro Context: Why These Earnings Matter

Nigeria’s 9M-2025 earnings season reflects broader economic realities:

• Inflation stood at 18.02% in September 2025.

• The Monetary Policy Rate (MPR) is 27%.

• GDP growth in Q2 2025 was 4.23%, indicating moderate economic expansion.

• FX volatility and interest rate fluctuations continue to influence earnings performance, particularly for export-driven energy and industrial companies.

These results highlight the balancing act firms must perform: capturing growth opportunities while managing costs, debt, and regulatory compliance.

Conclusion: Resilience Amid Challenges

The nine-month earnings season underscores both resilience and caution across Nigeria’s corporate sector. Banks leverage interest income growth, telecoms capitalize on tariff adjustments and operational efficiency, industrial players optimize costs, and consumer goods firms benefit from strong domestic demand.

However, structural challenges remain: FX volatility, rising operational costs, elevated impairment charges, and taxation continue to influence profitability. For investors, sector-specific monitoring and diversification are essential to navigate these headwinds and identify sustainable growth opportunities.

Investor Insight: The 9M-2025 results offer a roadmap for understanding earnings resilience, sectoral challenges, and opportunities across banking, telecoms, industrial, energy, and consumer markets.

📌 Editor’s Note: For content partnerships and collaborations, reach out via editor@naija247news.com

Reporting by Godwin Okafor, The Naija247news in Lagos, Nigeria.