Naira devaluation fails to dim appetite for NGX large caps as investors push more firms toward unicorn status
The number of Nigerian companies valued above $1 billion has risen to 11, as a strong equities rally continues to lift the valuation of the NGX’s largest players, collectively referred to by Nairametrics as SWOOTs (Stocks Worth Over One Trillion naira).
At the end of April 2025, 11 firms listed on the Nigerian Exchange (NGX) had market capitalizations exceeding N1.55 trillion, crossing the symbolic $1 billion threshold when converted at an average exchange rate of N1,550/$1.
This represents a rise from nine such companies in about a year ago and reflects a growing investor preference for highly capitalized, liquid, and dividend-yielding stocks.
A further seven companies are also knocking on the door, with valuations ranging between N1 trillion and N1.55 trillion, solidifying their place in the SWOOTs category and bringing them within reach of unicorn status in dollar terms.
Fundamentals and capitalization drive the surge
Analysis from Nairalytics, the research arm of Nairametrics, indicates that the current momentum driven by a combination of strong fundamentals and improved capitalization could push more companies across the billion-dollar mark in the second half of 2025.
Many of these SWOOTs posted significantly higher revenues year-on-year, while also raising fresh capital through public offers and rights issues.
These actions not only strengthened their balance sheets but also helped swell their overall market capitalizations.
Billion-dollar club expands
At the top of the list remains Airtel Africa, valued at N8.11 trillion, despite a marginal 1.96% year-on-year decline. The telecoms group returned to profitability in early 2025 with a pre-tax profit of $661 million after a turbulent 2024 marked by currency devaluation losses.
BUA Foods follows with N7.52 trillion, buoyed by robust profit margins and sustained growth in the consumer goods segment.
Dangote Cement and MTN Nigeria come next at N7.29 trillion and N5.09 trillion, respectively, even though Dangote Cement saw a 34% drop in value from the previous year.
Other members of the billion-dollar SWOOTs club include Seplat Energy (N3.35 trillion), Geregu Power (N2.85 trillion), BUA Cement (N2.83 trillion), GTCO (N2.23 trillion), Zenith Bank (N1.96 trillion), Transcorp Power (N1.99 trillion), and Aradel Holdings (N1.947 trillion).
Several of these companies—particularly Seplat, Geregu, GTCO, and Zenith—have attracted investor attention due to their strong dividend history, capital adequacy, and resilience in the face of FX and inflationary pressures.
SWOOTs knocking on the unicorn door
Seven other SWOOTs are nearing the $1 billion mark and could cross the threshold with continued market momentum:
- Lafarge Africa (WAPCO) – N1.332 trillion
- Nigerian Breweries – N1.332 trillion
- International Breweries – N1.242 trillion
- Access Holdings – N1.199 trillion
- UBA – N1.197 trillion
- FBN Holdings – N1.041 trillion
- Fidelity Bank – N1.001 trillion
Notably, International Breweries recorded a near 900% year-on-year rise in valuation following a significant recapitalization, while Fidelity Bank crossed N1 trillion for the first time after a rights issue and over 120% rise in share price.
Concentrated gains
The rise in unicorns is part of a broader trend of capital concentration on the NGX. By May 9, the top 19 companies accounted for 84% of the NGX’s total market capitalization of N68.35 trillion, underlining the dominance of SWOOTs in shaping market performance.
This skewed distribution highlights investor caution amid ongoing macroeconomic uncertainty, including inflation, currency volatility, and high interest rates. However, for NGX’s largest and best-capitalized firms, these headwinds have been largely offset by strong earnings and investor-friendly policies.
Currency impact softened by recapitalization
While the naira weakened considerably over the past year, many companies mitigated the impact through recapitalization.
Firms such as GTCO, Access Holdings, International Breweries, and Fidelity Bank issued billions of new shares via rights issues and public offers, increasing float and valuation even with modest price appreciation.
In contrast, firms that did not raise capital or fell short on earnings expectations struggled to maintain or grow their market value.
More unicorns likely before year-end?
The expansion of the unicorn list offers insight into the evolving dynamics of Nigeria’s capital markets. Investor interest is becoming more refined, focusing on liquidity, governance, and consistent financial performance.
- If current trends hold, and assuming exchange rate stability, Nigeria could see its number of dollar-valued unicorns exceed 15 by year-end.
- Banking and brewing companies already buoyed by recapitalizations and earnings growth are the most likely to make the leap.
- Outside the NGX, Nigeria also boasts notable unlisted unicorns such as Flutterwave (valued at $3 billion), Interswitch (over $1 billion), Andela ($1.5 billion), Moniepoint ($1 billion), and the Dangote Oil Refinery, which is widely believed to command a multibillion-dollar valuation.
Both Flutterwave and Dangote Oil Refinery have announced plans to list, potentially expanding the pool of billion-dollar companies on the exchange.
Data compiled from NGX filings and market close values as of April 30, 2025.