The most capitalized companies listed on the Nigerian Exchange (NGX 30) spent over N7.9 billion on Hotel and travel in the first quarter of 2022, up from the N5.05 billion spent within the same period in 2021. This represents an increase of 56.43%.
Nairametrics tracks the public information of the top listed firms on the NGX. The data was confirmed from the financial reports of the firms.
According to data from Nairalytics – the research arm of Nairametrics, 17 of 30 firms spent over N7.9 billion on Hotel and Travel in three months. Some of them are United Bank of Africa, Zenith Bank, Access Bank, Dangote Cement, MTN, United Capital Plc (UCAP), NASCON, Union Bank, Transcorp and Dangote Sugar among others.\
Read: Why some hotels may fold up soon – President, Hoteliers’ Association
The Covid-19 pandemic affected hotel and travel in the last two years as companies preferred to meet virtually rather than physically. However, the ease of lockdown protocols and other Covid-19 mandates has triggered a rebound in travel activities globally including in Nigeria.
This has now reflected in the 56% jump in travel spending year-on-year in the first quarter of 2022. Nigeria’s first-quarter GDP also reflects growth in both sectors. Accommodation services, which includes hotels grew by 1.93% while air travel rose 50% in the first quarter of the year respectively.
Upshots
Top on the list is United Bank of Africa (UBA) with N1.559 billion while the least is United Capital Plc (UCAP) which spent N9 million only on Hotel and Travel within the same period.
Read: How to negotiate for cheaper hotel room rates
Top 5 spenders
- UBA increased its Hotel and Travel expenses from N1.038 billion in Q1 2021 to N1.559 billion by the end of Q1 2022.
- Zenith Bank also increased its Hotel and Travel expenses from N797 million to N1.173 billion within the same period.
- Access Bank was the third biggest spender with N976 million in three months, up from the N953 million spent in Q1 2021.
- Dangote Cement was next with N948 million from N740 million.
- MTN, the nation’s biggest telco, spent N917 million on Hotel and travel in Q1 2022, up from N215 million incurred in Q1 2021
5 least spenders
- UCAP was the least spender among the top firms listed on NGX. The Financial services firm spent only N9 million only on Hotel and Travel, compared to the N3 million spent in 2021.
- NASCON rather spent less than what it spent in 2021, as the food production firm incurred only N24 million against the N57 million spent in 2021.
- Union Bank also spent N84 million in Q1 2022, up from the N49 million spent last year.
- Transcorp spent N106 million, up from the N50 million recorded in 2021
- Dangote Sugar incurred N108 million in Q1 2022, against the N201 million recorded within the same period in 2021
