Nigeria’s real sector is exhibiting measurable signs of recovery and expansion, as newly compiled financial data indicates a substantial increase in corporate revenues and profitability following the economic reforms initiated by the administration of President Bola Ahmed Tinubu.
The development comes against the backdrop of persistent criticism from opposition actors, who have questioned both the design and impact of the reform agenda. However, a closer examination of recent economic indicators suggests that, while the reforms initially triggered macroeconomic adjustments and short-term volatility, they are now yielding tangible gains within the productive base of the economy.
An analysis of 20 blue-chip companies listed on the Nigerian Exchange Group (NGX) shows that aggregate revenue rose to N27.8 trillion in the 2025 financial year, representing a 28.7 per cent increase from N21.62 trillion recorded in 2024. This performance reflects a broader shift toward market-driven operations, as firms adjust from a subsidy-influenced environment to one defined by price discovery, exchange rate alignment, and tighter macroeconomic conditions.
“This performance underscores a decisive shift from a subsidy-dependent framework to a more resilient, market-driven economy, The initial volatility associated with the reforms is now giving way to measurable gains in productivity and earnings.” the report stated.
Several leading companies posted significant improvements in financial performance, underscoring the breadth of the recovery. MTN Nigeria Communications Plc reported a profit before tax of N1.7 trillion in 2025, marking a sharp turnaround from a N550.3 billion loss in 2024, while Airtel Africa Plc returned to profitability with $328 million in profit after tax, reversing a loss of $89 million in the preceding year. Guinness Nigeria Plc recorded N41 billion in profit after tax, its first return to profitability since 2023, and Nigerian Breweries Plc achieved a 68.9 per cent increase in revenue to N383.6 billion.
“The breadth of recovery across sectors from telecommunications to manufacturing and energy reflects the adaptability of Nigerian firms to the evolving macroeconomic environment,” the report noted.
Further reinforcing the trend, Dangote Cement Plc posted revenue of N4.31 trillion, representing a 20.28 per cent year-on-year increase, while Seplat Energy Plc recorded revenue of N4.14 trillion, reflecting a 150.4 per cent rise from the previous year. Unilever Nigeria Plc also reported a 62 per cent increase in gross profit to N90 billion, with net profit doubling to N32 billion. Collectively, these results highlight a broad-based improvement across key sectors of the economy.
Beyond the formal corporate landscape, the rebound appears to extend into Nigeria’s informal economy. A 2025 survey by Moniepoint indicates that revenues within the informal sector grew by approximately 65 per cent.
“The earnings rebound is not limited to listed corporates, Operators in the informal sector are equally experiencing significant revenue expansion, indicating a wider diffusion of economic recovery.” the report added.
The improved earnings environment has translated into notable macroeconomic implications, including sustained private sector employment estimated at approximately 9.64 million Nigerians and shareholder payouts totaling N1.7 trillion, representing one of the strongest dividend cycles in recent years.
“This strong earnings cycle has unlocked substantial value for shareholders while positioning companies for reinvestment and expansion, The implication for employment generation and GDP growth remains significant.” the report stated.
Despite these positive indicators, debate continues regarding the distributional impact of the reforms. Critics point to elevated cost-of-living pressures and uneven transmission of gains across income groups, while proponents argue that the current performance reflects early-stage outcomes of necessary structural adjustments.
“We acknowledge that reform implementation often comes with transitional challenges, However, the current trajectory clearly indicates that the policies are achieving their primary objective of revitalising the real sector and laying the foundation for sustained economic growth.” the report concluded.
The strengthening of corporate earnings, alongside evidence of operational adaptation through efficiency gains and revenue diversification, suggests that Nigeria’s real sector is entering a more resilient phase, with prospects for higher growth, increased investment, and improved economic stability if current trends are sustained.