By Francis Ogwo
Despite the hardship on Nigeria’s economy as a result of the coronavirus outbreak and containment, about 95 leading companies in the Nigerian Stock Exchange have recorded combined gross earnings of N6.01 trillion in revenue for the first nine months of the year (Q3’20).
The gross earnings indicate a 1.97 per cent rise above the N5.89 trillion recorded in the corresponding period of 2019 (Q3’19). Gross profits also rose marginally to N1.61 trillion, 1.69 per cent from N1.58 trillion recorded in 2019.
Two of the three quarters in the period saw Nigeria’s economy in the negative gross domestic product, GDP, at -6.1 per cent and -3.62 per cent in Q2’20 and Q3’20 respectively, thereby sliding into its second recession in five years.
The economy during the period in review had been shut down with most businesses struggling to survive
Though the combined results of the companies outperformed the economy the individual performance shows that most of them suffered declines in earnings and profit with a good number of them recording losses.
Specifically, 44 companies recorded pre tax profit while 21 recorded losses.
Experts have opined that the pressure on corporate performance is not yet abetting adding that the banking sector’s figures in the fourth quarter, Q4’20, may be affected adversely due to bad loans and the provisioning that would be made in the full year audited account.
The Governor of Central Bank of Nigeria(CBN), Godwin Emefiele, has stated recently that the country is on the path of recovery given the reduction in the rate of slide in GDP in Q3’20.
