According to data from published financial statements, some of Nigeria’s leading companies incurred a combined forex loss of N2.17 trillion in the financial year 2024.
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 in 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.
According to the company’s financial report:
Realized FX losses accounted for 60.73% of the total, amounting to approximately N562 billion.
The remaining 39.27% (N363 billion) was unrealized, resulting from the revaluation of foreign-denominated obligations.
Both components were charged to the income statement, pushing MTN Nigeria’s pre-tax loss up by 209% to N550.326 billion in 2024.
Nestlé Nigeria also joined the list of companies heavily impacted by foreign exchange volatility, recording a 49% year-on-year increase in FX losses, which rose toN290.700 billion.
This figure accounts for 13.40% of the combined forex losses incurred by the ten companies under review.
Realized exchange loss: N57.598 billion
Unrealized FX loss: N233.102 billion
As a result of these heavy forex losses, Nestlé Nigeria’s pre-tax loss surged by 113%, reaching N221.589 billion during the period.
The Dangote Group’s cement and sugar operations incurred a combined N458.225 billion in FX losses:
Dangote Cement, in its 2024 financial results, attributed the foreign exchange loss to widespread currency devaluation across its African markets. “In 2024, currency devaluation emerged as a significant factor shaping the economic landscape across Africa, with most currencies in our operational countries experiencing depreciation,” the company stated.
The high FX burden significantly impacted on the group’s overall profitability, despite posting strong top-line figures.
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.
