Why Nigerian Companies are Now Having the Highest Cash Flows in History

After years of foreign exchange headaches, rising finance costs, and volatile earnings, Nigerian companies are finally breathing easier  and it’s showing in their cash registers.

The first half of 2025 has brought a rare combination of stability and momentum. The naira’s improved exchange rate has not only wiped away the heavy FX losses that plagued corporate results in previous years, but has even delivered gains for some. 

While higher profits are making headlines, the bigger story lies in the surge of operating cash flows, the money companies generate from their core day-to-day business.

For many of Nigeria’s corporate giants, these cash flows have hit levels never seen before, powering expansion, reducing debt, and strengthening investor confidence.

The Big 5 driving the growth

An analysis of MTN Nigeria, Dangote Cement, Seplat Energy, Nestlé Nigeria, and BUA Cement shows a combined ₦2.92 trillion in net cash flow from operations in the first half of 2025. 

That’s a 140% jump from the same period last year, and even higher than what they made in the whole of 2024.

Profits have also bounced back sharply from a staggering ₦403 billion combined loss a year ago to ₦1.21 trillion in profit after tax this year. But for analysts, the real measure of strength is the ability to turn earnings into cash that can be put to work immediately.

MTN Nigeria – From Debt Trouble to Dividend Talk

MTN Nigeria is leading the pack with ₦956 billion in operating cash flow, outpacing its profit of ₦415 billion for the same period. This turnaround follows a tough 2024 marked by FX translation losses and macroeconomic pressures. 

With better pricing strategies, a stabilised naira, and reduced inflationary strain, MTN has also slashed its negative equity from ₦458 billion to just ₦42.5 billion. Market watchers say the telecom giant may resume dividend payments this year.

Dangote Cement 

Dangote Cement posted ₦874 billion in operating cash flow, more than double last year’s figure, alongside ₦521 billion in net profit. 

A reduction in inventory levels and prepayments has freed up more liquidity, giving the company flexibility to fund new plants, pay down debt, and maintain dividends.

Seplat Energy

Seplat’s ₦42 billion profit might seem underwhelming at first glance, but the company generated a massive ₦755 billion in operating cash flow, boosted by strong revenues and large non-cash depreciation charges. 

Management has already pledged to use part of this windfall to cut debt by $100 million while maintaining dividends.

Nestlé Nigeria

Nestlé’s profit of ₦50.6 billion is a huge leap from last year’s deep loss. But the real milestone is its ₦187.6 billion in positive operating cash flow, a complete reversal from a cash drain last year. 

While it isn’t paying dividends at the moment, analysts say the cash reserves give it room to invest, repay debt, and potentially return money to shareholders later.

BUA Cement

BUA Cement’s pre-tax profit soared 435% to ₦215 billion, but operating cash flow was lower at ₦150 billion, suggesting that a large chunk of profits is tied up in working capital. This could mean slower collections from customers or other operational pressures.

Why this matters for investors

Strong operating cash flow isn’t just an accounting win, it’s a sign of corporate resilience. It shows a company can generate the money it needs to expand, reward shareholders, and weather economic shocks without relying heavily on debt.

With such a powerful first half, the second half of 2025 will test whether these gains are sustainable. But for now, Nigerian corporates have proven that while profits make the headlines, the real measure of strength is the cash they keep.