Nigeria’s Most Profitable Companies, Using Return on Equity, Are in Agriculture

Which two companies are the most profitable ones in Nigeria, using return on equity? Not banks, not insurers, not telcos and all those fintechs. In the Nigerian public market, Presco and Okomu Oil are the two most profitable companies this year, to the end of September, using return on equity (RoE)*.

While Presco records RoE of 50.24%, Okomu Oil does 53.96%. What do these two companies do? Production and processing of oil palm and associated components.

In Tekeda Capital, this year, agtech companies are outperforming other sectors in our portfolios. In short, in the last two weeks, one of our startups recorded a GMV* of $1 million in 3 days. Young People, rethink agriculture: there is wealth therein. Yes, agro looks great.

There’s something amazing about palm trees, that every branch of it is useful. Even the shells of the kernels are awesome fuel for cooking. I have great interest and experience with the palm oil. My Mom used to make black-soap with the sediments from the separation of oil and…

— Hugohills™ (@GHugohills) November 23, 2023

“With cosmetics, makeup, etc becoming a norm in the beauty space, palm oil is the new gold. You cannot produce enough palm oil these days because everyone needs it to create makeups.”

*Nairametrics data 

1. Okomu Oil – 53.96%

2. Presco – 50.24%

3. National Salt Company of Nigeria (NASCON) – 47.40%

4. MTN Nigeria – 45.64%

5. BUA Foods – 43.42%

6. Cornerstone Insurance – 41.72%

7. Zenith Bank – 39.27%

8. GTCO – 33.34%

9. United Bank for Africa – 33.28%

10. AXA Mansard Insurance – 33.19%

*GMV stands for Gross Merchandise Value and it is the total value of goods sold/facilitated on the marketplace over the 3 day period in this context.

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