Ten Nigerian Companies incur N2.17 trillion in forex losses.

Some of Nigeria’s leading companies incurred a combined forex loss of N2.17 trillion in the financial year 2024, according to data collated by Nairametrics from published financial statements.

The sheer size and magnitude of the losses were so significant that they negatively impacted the bottom line for some firms. These staggering losses were largely triggered by the devaluation of the naira, following the Tinubu administration’s foreign exchange unification policy launched in June 2023.

In context, the exchange rate opened 2023 at N461.5/$1, closed the year at N907.11/$1, and ended 2024 at N1,535/$1. This sharp devaluation led to massive FX losses for Nigerian businesses with dollar-denominated obligations, as these liabilities were revalued in naira terms.

The losses spanned multiple sectors, including consumer goods, telecommunications, and cement:

• Affected companies include MTN Nigeria, Dangote Cement, Nigerian Breweries, and BUA Foods—all giants in their industries.
• Foreign-owned multinationals such as Nestlé, Cadbury, and Lafarge Africa were also hit hard.
• Aradel Holdings, a key indigenous player in energy, also featured prominently.

Despite a 64.38% increase in combined revenue to N13.452 trillion, these firms recorded a 6.03% decline in aggregate pre-tax profits to N332.227 billion, due largely to FX pressures.

MTN Nigeria topped the list with a combined foreign exchange loss of N925.361 billion, representing 42.65% of the total FX losses recorded by the companies under review. This figure marks a 24.98% increase compared to 2023.

Source: Nairametrics