A new report has shown Access Bank, Zenith Bank, Dangote Cement, and seven other companies are the biggest companies by brand value in Africa’s biggest economy.
The report titled ‘Nigeria’s 25 Most Valuable Brands’ by Brand Finance, a London-based brand valuation consultancy, showed Access Bank grew its brand value by 31 percent to N205.6 billion.
Zenith Bank’s brand value rose by 43 percent to N201.6 billion, Dangote Cement increased by 27 percent to N186.9 billion, UBA rose by 28 percent to N161.6 billion.
Others on the top ten list are Flour Mills Nigeria (N123.6 billion), First Bank of Nigeria (N116.9 billion), Life Continental Lager (N53.6 billion), Orijin (N52 billion) and 33 Export (N48.5 billion).
The report also showed banking was the most valuable sector in the ranking, up 29 percent year-on-year to N888 billion.
“This makes banking the most valuable sector in the ranking by a significant margin, worth almost N633 billion more than the next most valuable sector – Engineering & Construction (N255 billion),” it said.
According to Babatunde Odumeru, managing director at Brand Finance Nigeria, Nigeria’s top banking brands’ exceptional brand value growth is a testament to their strong financial performance, and sustained high levels of brand equity, even amidst challenging economic conditions.
“These results demonstrate the considerable resilience of the country’s banks, which continues to dominate the ranking, and reflects the industry’s significant contributions to the country’s economy,” he said.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries.
The world’s top 25 most valuable and strongest Nigerian brands are included in the annual Brand Finance Nigeria 25 2023 ranking.
In measuring brand value – the net economic benefit a brand owner achieves by licensing it in the open market – Brand Finance Africa adopted the royalty relief approach.
This method involves a combination of the market and income valuation approaches. The value of the intangible asset is based on the costs that the company would avoid by not having to pay a license fee or royalty to use the asset.
This is compliant with the industry standards set in ISO 10668.
“This year, the firm has invested more in researching and understanding customer perception of brands across the world than ever before, with original research taking place in dozens of jurisdictions globally,” David Haigh, chairman and chief executive officer at Brand Finance, said.
He said the report is based on this extensive original research, with the findings representing a catalyst for further conversations.
The report also highlighted that BUA Cement clinched the title of Nigeria’s fastest-growing brand after an increase of 64 percent took it to a brand value of N43.9 billion.
“As demand for cement surged, the brand’s revenues have increased by 40.5 percent, while its forecasts have also gone up. BUA Cement’s increase in sales of bagged cement has helped it offset the impacts of inflation and currency effects, which have been widely felt by many brands throughout 2022,” it said.
Fearless, an energy drink brand, was the strongest Nigerian brand with a brand strength index score of 87 out of 100 and a corresponding AAA rating.
“Fearless has a dominant four-point lead at the top of the ranking for brand strength over Nigeria’s second strongest brand, United Bank for Africa (83/100, AAA-),” authors of the report said.