By Reapfinance Investigative Group
Breaking into the league of global giants still remains a tall dream as the 2017 results declared so far by Nigerian companies show a far gap even from the least of Fortune 500 companies.
Reapfinance investigations show that at a Turnover of $2.6 billion (N305/USD), Dangote Cement which grossed the highest revenue out of all the companies listed on the Nigerian Stock Exchange (NSE) is still almost 20 times less than AutoNation which ranked last of the 500 top revenue earners compiled by Fortune Magazine for 2017. AutoNation, a retailer of vehicles based in the United States, posted a revenue of $21.6 billion.
Dangote Cement posted a turnover of N805 for FY 2017 to rank as the highest revenue grosser of all the public companies in Nigeria. Runner-up, Zenith Bank posted a revenue of N745 billion ($2.4 billion) while Guaranty Trust Bank announced N419 billion ($1.3 billion) in gross earnings.
Analysts believe that the Nigeria’s quest for presence in the summit of global economic leadership will best be led by companies who are able to tap into the platform provided by the globalization of trade to boost revenues abroad while creating jobs at home.
Though the three companies (Dangote Cement, Zenith Bank and Guaranty Trust Bank) operate as multinationals, their presence is essentially in low income African countries without strong purchasing power that can make for a strong push into the league of top revenue earning companies.
Apart from Nigeria, Dangote Cement has subsidiaries in 10 African countries including Benin, Cameroon, Ghana, Zambia and South Africa. GTB and Zenith also essentially remain African stories with presence almost in the same markets whose earnings represent insignificant fractions of the revenue portfolios.