Nigerian billionaire Aliko Dangote is still influencing his country's financial market but, his company is gradually losing its leading position on the local stock exchange to South African telecom group MTN.

Dangote Cement is no longer the largest company listed on the Nigerian Stock Exchange (NSE). According to market data assessed by the Ecofin Agency, as of November 1, 2022, the group’s market valuation was US$8.4 billion.  

It is lower than the US$9.12 billion market valuation of MTN Nigeria, the local subsidiary of South African telecom group MTN. This marks the beginning of a new era in the Nigerian stock market as Dangote Cement is no longer the only high-value listed company.

The development can be explained by two major facts: over the past 12 months, the value of MTN Nigeria rose 12.1% while Dangote Cement’s declined by 21.25%. The stock performances seem to have been influenced by their respective operating performances. Over the last four quarters, ending September 2022, MTN's revenue reached US$4.4 billion with a net profit of US$807 million, in line with its performance over the past four years.  

 Dangote Cement recorded only US$3.5 billion in sales and its net profit declined to US$682 million. MTN Nigeria also recorded a better profitability profile, with a return on equity that is 164% according to the new NSE benchmark and 34.3% per the old benchmark.

This new corporate leadership is likely to continue in the short term as MTN Nigeria still has more room to grow. Its price-earnings ratio is 11.6 against 12.4 for Dangote Cement.