Corporate Nigeria significantly increased its travel-related expenditures in 2024, with 20 listed firms on the Nigerian Exchange (NGX) spending a combined N164.4 billion on business travel and associated logistics.
This is according to data compiled by Naijaonpoint research from the financial statements of these companies.
This represents a 93.2% increase from the N85.1 billion recorded in 2023, according to data compiled by Naijaonpoint from their audited financial statements.
But behind the jaw-dropping surge lies a deeper story of economic shocks, rising inflation, and structural business adjustments.
The cost of domestic and international air travel in Nigeria ballooned throughout 2024, as airlines adjusted fares in response to exchange rate depreciation, increased fuel prices, and operational overheads.
According to Naijaonpoint reporting in August 2024, domestic airline ticket prices rose by more than 50% year-on-year, while international routes were even more severely impacted by forex volatility.
Airlines such as Air Peace, Ibom Air, and major international carriers all reviewed their pricing models upwards as jet fuel costs, denominated in dollars, became more expensive due to the naira’s depreciation.
The Nigerian Bureau of Statistics (NBS) also reported that transportation inflation rose by 30.5% year-on-year as of December 2024, a major jump that predated the rebasing of the consumer price index.
GDP data from the NBS showed that the transportation sector recorded a 6.53% growth rate in 2024, reflecting the intensity of mobility-related activity.
In many cases, companies lumped travel, logistics, and even hotel accommodation under “travel and transport” expense lines, creating a broader picture of elevated mobility costs across the board.
At the top of the list, Access Corporation reported N53.23 billion in business travel expenses—up 89.77% from N28.05 billion in 2023.
FirstHoldco, the holding company of First Bank, also recorded a sharp rise, with N26.07 billion spent on travel, up 141.61% from the previous year.
In fact, the amount spent on travel exceeded the company’s entire line item for administrative and other charges for the year (N20.72 billion), as the financial behemoth undertook a significant volume of strategic and operational travel in 2024.
Seplat Energy wasn’t far behind, logging N13.47 billion in flight and logistics-related costs, a 162.06% jump from N5.14 billion in 2023.
Several other companies in different sectors recorded sharp increases:
Even players in the fast-moving consumer goods (FMCG) space weren’t exempt. Lafarge Africa (N2.39 billion, +123.36%), Nestlé Nigeria (N1.75 billion, +20.69%), and BUA Foods (N1.70 billion, +47.83%) all saw notable increases.
Even players in the fast-moving consumer goods (FMCG) space weren’t exempt. Lafarge Africa (N2.39 billion, +123.36%), Nestlé Nigeria (N1.75 billion, +20.69%), and BUA Foods (N1.70 billion, +47.83%) all saw notable increases.
The data also shows that a few companies managed to reduce their travel-related expenses in 2024. BUA Cement (N574 million, -3.24%), Dangote Sugar Refinery (N1.21 billion, -1.63%), and Honeywell Flour Mills (N137.5 million, -51.27%) were among those that recorded year-on-year declines.
This could be attributed to cost-cutting initiatives, hybrid work models, or reduced operational intensity.
What it all means
The nearly N150 billion increase in travel spending across Corporate Nigeria in 2024 reflects how inflation and macroeconomic headwinds directly shape business operations.
With Nigeria’s inflation still in double digits and transportation costs continuing to rise in early 2025, the trend of elevated travel spending could persist unless companies adopt more cost-effective strategies or regulators manage to tame the broader inflationary environment.