Twelve Nigerian Firms Drop From FT Africa Growth Ranking

Nigeria’s representation on the 2026 edition of the Financial Times and Statista ranking of Africa’s Fastest-Growing Companies has declined sharply to 16 firms from 28 recorded in the previous year, underscoring the growing impact of currency volatility and macroeconomic pressures on businesses in Africa’s largest economy.

The latest ranking, published on Tuesday by the Financial Times in partnership with global data firm Statista, showed that Kenya overtook Nigeria for the first time since the list was introduced in 2022, with 17 companies making the continental ranking, while South Africa retained the highest number of entries at 51 firms.

The report, which ranks 130 African companies based on their compound annual growth rate (CAGR) between 2021 and 2024, highlighted that Nigerian firms were significantly affected by the sharp depreciation of the naira following the foreign exchange reforms introduced by the administration of President Bola Tinubu in 2023.

According to the report, the naira’s devaluation compressed the dollar-equivalent revenues of Nigerian businesses, reducing their competitiveness in a ranking measured largely in US dollar terms.

“A company that grew strongly in naira terms could appear flat or even weaker in dollar terms due to exchange rate losses,” the report noted.

The combined 2024 revenue of the 16 Nigerian companies on the list stood at approximately $1.35bn, far below Kenya’s combined revenue of $7.83bn from its 17 firms. South Africa’s 51 companies generated a combined revenue of $3.56bn.

The average Nigerian company on the ranking posted annual revenue of about $84m, compared with Kenya’s average of $460m.

Despite Nigeria recording a higher average growth rate of 105 percent compared to Kenya’s 32 per cent and South Africa’s 47 per cent, analysts noted that many Nigerian companies were growing from a relatively smaller revenue base.

The report further revealed that the first Nigerian company by revenue on the ranking was BUA Foods, which emerged sixth overall behind major Kenyan corporates including Kenya Power and Lighting Company, KCB Group and Kenya Airways.

Unlike previous editions dominated by African startups and technology firms, the 2026 ranking reflected the growing influence of established corporates, particularly in Kenya, where banks, utilities, retailers and transport companies drove growth.

Industry analysts said Nigeria’s decline on the ranking reflects broader concerns about the business environment, rising inflation, high interest rates and foreign exchange instability, all of which have weakened corporate earnings when converted to dollars.

The report also cited comments from Lagos-based growth investment firm Norrsken22, which disclosed that it was slowing investment activity in Nigeria while increasing focus on markets such as Egypt and South Africa.

Fintech and financial services remained the dominant sector on the continental ranking, accounting for 36 of the 130 companies listed, followed by information technology, manufacturing, energy, hospitality and retail businesses.

The report noted that Kenya’s strong showing was aided by a combination of post-pandemic recovery, tariff adjustments, banking sector expansion and relative currency stability compared with countries such as Nigeria, Ghana and Egypt, whose currencies recorded steep declines during the review period.

Analysts believe the latest ranking signals a shift in Africa’s corporate growth landscape, with investors increasingly paying attention to economies demonstrating stronger currency resilience and larger revenue-generating corporates.

The Financial Times/Statista annual ranking has become one of the continent’s most closely watched indicators of corporate expansion and business performance across Africa’s major economies.