August 11, 2025
Several Nigerian companies are experiencing unprecedented growth in liquidity as operating cash flows hit record highs, reflecting improved business performance and stronger revenue generation across key sectors.
Financial disclosures from listed firms for the latest reporting period show a sharp surge in cash inflows from core operations, with many corporations posting their strongest cash positions in years. Analysts attribute the upswing to robust sales volumes, efficient cost management, and strategic pricing adjustments in response to inflationary pressures.
The manufacturing, telecommunications, and banking sectors were among the top performers, with some companies reporting double-digit percentage growth in net cash from operations compared to the previous year. This financial momentum, experts say, could provide businesses with greater flexibility to fund expansion projects, reduce debt, and increase shareholder returns.
Market watchers note that the trend also reflects improved consumer demand and a more stable foreign exchange environment, which have supported operational efficiency and reduced financial strain. However, they caution that sustained growth will depend on broader macroeconomic stability and continued policy support from the government.
The record-breaking performance has raised optimism within Nigeria’s capital market, with investors closely monitoring how companies deploy their strengthened cash reserves in the months ahead.