Being a big business can be one good thing, you know the counting is always in reasonable cash. Personally I must admit that I love seeing this big numbers, it makes my entrepreneurship Journey much more encouraging. The Nigerian economy has been one rough ride for a while, some companies have had to pull out to avoid larger bankruptcy records. I was surprised when I was told a big pharmaceutical folded last year if I am not mistaken. My surprise was the fact that the health industry has been a boomer; people are likely to pay anything to stay healthy.
At least for small scale businesses I can understand such situations. A tough economy has brought about many forgone alternatives especially when the field of business is not much centered on life's essentials. It becomes difficult to influence the market from here, raise the price too much to the roof and service or product demand will be sorted out elsewhere.
Ok, we are not here to talk of bankruptcy story today; some companies have been on the green in the entire process. It can also be a hedge too when you are big. There is one company I am not surprised to see on this list. At least we know citizens have had to survive on where they decide to keep their service prices. Yes, even with competitors it has been that sort of monopoly company. We will be looking at some companies in Nigeria who are floating above the N1 billion mark according to feasibility studies from the Nigerian exchange (NGX).
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Starting off, it has been the one I just discussed of in the earlier paragraph. MTN Nigeria, a telecom/network provider company has topped the list. I read one of such articles recent how this company had hit the N10 billion Maria mark. I don't know how it was calculated but this research carries around N6.6 billion Naira. As I earlier said, I am not too surprised, the rise of smartphones has made this industry boom. As one of their subscribers we have had to pay high on both airtime and data subs courtesy of a tough economy as they say. You should be used to it, business don't pay for the expenses the customers do and even much sweeter when you have become a household name.
The TOP list is followed by Dangote cement with roughly N5.85 billion as accounted this August. Not also a surprise too. Nigeria’s and Africa’s richest man, Aliko Dangote has continued to show business dominance in the field of building materials. Adding to that, the price of Cement sales in Nigeria by Dangote is far higher than other countries. While others are buying around N2,500 to N3,500 in Naira equivalence we have seen hiked Dangote Cement price to N8,000, N9000 and so on.
It even spiked to N12,000 per bag early this year. The efforts of BUA Cement, a rival competitor, to bring prices down as they were selling at N3,500 was later put to futility. It has made citizens a little skeptical. I mean, why should the one selling lower be silenced off business. Maybe another Monopoly in full display here. Ok, let's leave it there.
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BUA foods stands third in this latest update with around N5.70 billion . Maybe if they could have succeed the Cement market it would have added a yield improvement to it food industry. Just considering how the company would have leveraged some of their interest here to increase their food industry production rate. I haven't really been noticing this company until it low release sales of Cement. To even tip in a little a summation of BUA Cement and BUA foods will put this company on the top list. Their Cement company stands fifth which I won't be getting there at roughly N3.3 billion. A joint calculation as I said equals N10 billion Naira.
The final we will be putting on the list is Airtel Africa which has an almost equivalent market capitalization with BUA foods. The telecommunication industry is really booming as I earlier said due to high usage of smart phones. Adding to that, Nigerians are the top users of mobile phones in Africa which opens up a big opportunity for both cell and smartphone usage to favor these companies. I think this industry will even grow larger in the Next two to three decades.
To conclude, let me add, some businesses are still staying in profit in the billions of Naira market capitalization. Nevertheless, there are other factors to consider like Naira devaluation. Those that make ALL this billions of Naira in growth really worth it when comparing to how this progress is on the other hand weak against the US dollars?
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