Top-Performing Nigerian Companies to Buy Shares – Nigeria has one of the largest and fastest-growing economies in Africa, with abundant natural resources, a young population, and a rapidly expanding consumer class. This makes it an attractive destination for investors looking for high-growth opportunities. In this article, we will look at the top 10 best Nigerian companies to buy shares in right now based on factors like market leadership, growth potential, profitability, competitive advantages, and corporate governance.
Top-Performing 10 Best Nigerian Companies to Buy Shares.
1. MTN Nigeria
MTN Nigeria is the leading telecom operator in the country with over 68 million subscribers. The company generates robust cash flows and pays attractive dividends. MTN Nigeria is well positioned to benefit from expanding mobile penetration in Nigeria, which still lags most African peers. The company is also diversifying into fintech and mobile money services to drive future growth. With dominance of Nigeria’s telco space, MTN Nigeria is a top pick for long-term investors.
2. Dangote Cement
As the largest cement producer in Nigeria, Dangote Cement enjoys scale advantages in raw material sourcing, manufacturing and distribution. The company is expanding capacity steadily to boost market share and exports to neighboring countries. Demand for cement in Nigeria is estimated to rise over 25% by 2025, driven by rapid urbanization, infrastructure development and housing shortages. This presents significant growth potential for Dangote Cement.
3. Guaranty Trust Bank (GTBank)
GTBank is one of the most well-managed and profitable banks in Nigeria. The lender enjoys leadership in retail banking due to its focus on technology and service delivery. Its growing agent banking network and digital platforms have expanded customer reach across the country. Conservative risk management and cost efficiencies have led to industry leading returns for GTBank. Its forward PE of just 4x makes it attractive for investors.
4. Zenith Bank
Zenith Bank is another leading financial institution that has consistently outperformed peers on profitability and asset quality. The bank has achieved this by building a low cost retail funding base and adopting robust risk management practices. Zenith Bank is well positioned to ride Nigeria’s low banking penetration levels and underinsured population. The lender also pays high dividend yields of over 10%.
5. Nestle Nigeria
Nestle Nigeria is one of the most established and dominant food companies in the country. With category leadership in products like Maggi, Milo and Nestle Pure Life water, the company enjoys high loyalty and pricing power. Nestle Nigeria is expanding distribution networks in rural areas and launching new products for affordability. Its stocks offer a stable defensive play in volatile markets.
6. Airtel Africa
Airtel Africa is a leading telecom services provider in 14 African countries including Nigeria. It has over 122 million subscribers supported by extensive network and spectrum assets. The company is capitalizing on growing data usage and financial inclusion needs across Africa. Airtel Africa has seen profits grow by 25% in 2021, with 62% EBITDA margins. The stock is an excellent way to get exposure across high potential African markets.
7. BUA Cement
BUA Cement has rapidly expanded capacity in the past few years to become Nigeria’s second largest cement producer. The company is adding new plants across the country to ramp up output and gain share. Lower gas and
electricity costs for BUA’s efficient plants have helped it generate best-in-class net margins of over 30%. BUA Cement aims to double capacity in the next 3 years, which gives it strong growth visibility.
8 .Presco
Presco operates a dominant palm oil business with over 60% market share in Nigeria. The company has shown remarkable volume and profit growth in recent years. Its high oil extraction rates and integrated operations generate healthy cash flows. With palm oil demand outstripping supply globally, Presco is well placed to capitalize on this supply gap. The company also pays annual dividends, making it attractive for income seekers.
9. Seplat Energy
Seplat Energy is Nigeria’s leading indigenous natural gas producer. The company’s gas revenues have risen sharply after commencement of the Oben pipeline. Seplat supplies gas to over 40% of Nigeria’s power generation capacity, making it a crucial player in alleviating domestic energy shortages. With high entry barriers and stable long-term contracts, Seplat offers compelling exposure to Nigeria’s growing natural gas market.
10. Stanbic IBTC Holdings
Stanbic IBTC Holdings provides an integrated range of wholesale and retail financial services in Nigeria. The company has achieved consistent growth in client base, deposits, loans and assets under management. Focus on digitization and customer experience has expanded Stanbic’s reach cost efficiently. conservatively managed loan book and ample liquidity provide earnings stability. Stanbic stock also trades at an attractive P/B of just 0.9x.
