News in brief:
– Nigerian food companies recorded strong stock market performance in Q1 2025, with major firms like Northern Nigeria Flour Mills and Honeywell Allied Industries posting significant gains, while Union Dicon Salt saw a decline.
– This growth signals increased demand for agricultural raw materials, boosts investor confidence, and highlights the need for policies that support local production and economic stability.
Nigerian food companies had an impressive first quarter (Q1) of 2025 on the Nigerian Stock Exchange (NGX). The last week of trading saw reduced activity as volume fell significantly from 27.5 million to 8.8 million.
Northern Nigeria Flour Mills plc (NNFM) saw its stock value rise by 86.70% (from ₦47 to ₦87.75) between January and March 2025. Headquartered in Kano State, the company mills wheat, maize, sorghum and other associated grains into products such as Dawavita, Masaflour, Masavita, Masalina, Golden Penny’s Semovita, Semolina, Sorghum Flour and MaiKwabo Flour.
Honeywell Allied Industries Plc (HONYFLOUR) recorded an increase of 62.29% as its stocks were worth ₦12.35 by the end of the quarter after starting at 7.61. Nascon Allied Industries Plc also posted a rise above 50%, with its stock trading at ₦45.95, higher than ₦30.6 it was worth at the start of the year.
Nestle Nigeria Plc (NESTLE) witnessed a 16.57% increment in its stock value by the end of trading in March 2025. Meanwhile, Dangote Sugar Refinery (1.07%) and BUA Foods (0.72%) posted modest gains by the end of the period under consideration.
Union Dicon Salt Plc was the only food company that witnessed a decline in its stock value in Q1 as its price fell (-32.64%) from ₦7.2 to ₦4.85.
The strong performance of Nigerian food companies is a positive signal for farmers, investors, policymakers, and the economy at large.
For farmers, the rising stock values of major food processing firms like Northern Nigeria Flour Mills and Honeywell Allied Industries indicate a growing demand for raw materials such as wheat, maize, and sorghum. This could translate into better pricing and more stable contracts for local producers, boosting agricultural productivity.
Investors in the agricultural value chain will also see this as a sign of profitability, encouraging more capital injection into the sector. The performance of these companies suggests resilience in Nigeria’s food industry, potentially attracting both domestic and foreign investments that can spur further growth.
For policymakers, the food sector’s strong stock market showing underscores the need for sustained agricultural policies that support local production and food security.
Government initiatives aimed at stabilising grain supply, improving transportation infrastructure, and reducing post-harvest losses could further enhance profitability in the sector.
On a broader scale, the economic impact of these stock gains could improve consumer confidence and encourage more participation in the equities market, fostering economic growth.
However, the decline in Union Dicon Salt’s stock value highlights the need for companies to remain competitive in a volatile market.
If sustained, the overall market performance of food firms could lead to job creation, increased government revenue through taxation, and a more robust agribusiness sector that strengthens Nigeria’s economy.
