Corporate Nigeria significantly increased its travel-related expenditures in 2024, with 20 listed firms on the Nigerian Exchange (NGX) spending a combined N164.4 billion on business travel and associated logistics.
This is according to data compiled by Nairametrics research from the financial statements of these companies.
This represents a 93.2% increase from the N85.1 billion recorded in 2023, according to data compiled by Nairametrics from their audited financial statements.
But behind the jaw-dropping surge lies a deeper story of economic shocks, rising inflation, and structural business adjustments.
Airfares, logistics and FX fuelled the surge
The cost of domestic and international air travel in Nigeria ballooned throughout 2024, as airlines adjusted fares in response to exchange rate depreciation, increased fuel prices, and operational overheads.
According to Nairametrics reporting in August 2024, domestic airline ticket prices rose by more than 50% year-on-year, while international routes were even more severely impacted by forex volatility.
Airlines such as Air Peace, Ibom Air, and major international carriers all reviewed their pricing models upwards as jet fuel costs, denominated in dollars, became more expensive due to the naira’s depreciation.
Macros also reflect a surge
The Nigerian Bureau of Statistics (NBS) also reported that transportation inflation rose by 30.5% year-on-year as of December 2024, a major jump that predated the rebasing of the consumer price index.
GDP data from the NBS showed that the transportation sector recorded a 6.53% growth rate in 2024, reflecting the intensity of mobility-related activity.
- Hotels and accommodation, another major component of corporate travel, also saw significant cost hikes in 2024.
- The FX crisis meant imported inputs such as fuel for generators, facility maintenance supplies, and even food ingredients became more expensive, costs which were passed on to guests.
- The average hotel room rate in Lagos and Abuja surged by over 40%, according to Nairametrics’ analysis.
In many cases, companies lumped travel, logistics, and even hotel accommodation under “travel and transport” expense lines, creating a broader picture of elevated mobility costs across the board.
Access, UBA, and FirstHoldco led the spenders
At the top of the list, Access Corporation reported N53.23 billion in business travel expenses—up 89.77% from N28.05 billion in 2023.
- This accounted for nearly a quarter of its administrative costs and reflects the Group’s expansive footprint across Nigeria and other African countries.
- UBA Group was next with N29.13 billion, more than doubling its N14.2 billion spend in 2023.
- While no breakdown of its total administrative expenses was provided, the scale of the increase points to a substantial uptick in corporate mobility, possibly linked to its cross-border operations in Africa and Europe.
FirstHoldco, the holding company of First Bank, also recorded a sharp rise, with N26.07 billion spent on travel, up 141.61% from the previous year.
In fact, the amount spent on travel exceeded the company’s entire line item for administrative and other charges for the year (N20.72 billion), as the financial behemoth undertook a significant volume of strategic and operational travel in 2024.
Seplat Energy wasn’t far behind, logging N13.47 billion in flight and logistics-related costs, a 162.06% jump from N5.14 billion in 2023.
- In a sector where travel is essential for rig inspections, partner meetings, and safety audits, the surge reflects Seplat’s continued field activity and possibly expansion efforts in Nigeria’s oil and gas industry.
- Dangote Cement reported N13.29 billion in travel-related expenses, a 71.89% increase, aligning with the Group’s broad network of cement operations across the country and in West Africa.
Construction, Energy, FMCG, and Finance all saw spikes
Several other companies in different sectors recorded sharp increases:
- Presco Oil PLC spent N7.55 billion on travel and transport in 2024, up 55.35% from the previous year, reflecting increased logistics for agro-industrial operations.
- FCMB Group recorded N4.31 billion, marking a 62.64% increase, while TotalEnergies Marketing Nigeria spent N3.84 billion (+78.60%), a combination of fuel and travel costs that reflect higher operational intensity and inflation.
- Julius Berger Nigeria, the country’s leading construction company, posted N3.76 billion in travel costs, a 45.17% rise, likely due to mobilizations across multiple infrastructure sites.
Even players in the fast-moving consumer goods (FMCG) space weren’t exempt. Lafarge Africa (N2.39 billion, +123.36%), Nestlé Nigeria (N1.75 billion, +20.69%), and BUA Foods (N1.70 billion, +47.83%) all saw notable increases.
Not all companies spent more
The data also shows that a few companies managed to reduce their travel-related expenses in 2024. BUA Cement (N574 million, -3.24%), Dangote Sugar Refinery (N1.21 billion, -1.63%), and Honeywell Flour Mills (N137.5 million, -51.27%) were among those that recorded year-on-year declines.
This could be attributed to cost-cutting initiatives, hybrid work models, or reduced operational intensity.
What it all means
The nearly N150 billion increase in travel spending across Corporate Nigeria in 2024 reflects how inflation and macroeconomic headwinds directly shape business operations.
- While it may appear as an indulgence on the surface, the rise in costs was largely driven by unavoidable realities: a depreciating currency, more expensive fuel and airfares, and a high-inflation environment.
- That said, some companies likely resumed full-scale travel after previous cutbacks during the COVID-19 years and the early FX crisis of 2023.
- The data also reflects a return to aggressive business development, market expansion, and intra-regional coordination, especially for companies with pan-African ambitions.
With Nigeria’s inflation still in double digits and transportation costs continuing to rise in early 2025, the trend of elevated travel spending could persist unless companies adopt more cost-effective strategies or regulators manage to tame the broader inflationary environment.
