Quick Summary: Ten of Nigeria’s biggest companies recorded a combined N2.17 trillion in forex losses in 2024, driven by sharp naira devaluation. Despite revenue growth, firms like MTN, Dangote, and Nestlé saw significant hits to profitability due to FX exposure.
Nigerian Companies Lose N2.17 Trillion to Forex in 2024
Some of Nigeria’s top companies recorded a combined foreign exchange (FX) loss of N2.17 trillion in the 2024 financial year. This is according to data compiled by Nairametrics from their published financial reports.
The massive losses were so large that they dragged down the profitability of many of these firms.
What Caused the Huge Losses?
The losses were largely driven by the sharp devaluation of the naira after the Tinubu administration introduced its foreign exchange unification policy in June 2023.
Here’s how the naira fared over the period:
- Start of 2023: N461.5/$1
- End of 2023: N907.11/$1
- End of 2024: N1,535/$1
This steep decline affected companies with dollar-denominated obligations, forcing them to revalue their debts in naira—leading to huge losses.
Affected Sectors and Companies
The FX losses affected a wide range of sectors, including:
- Consumer goods
- Telecommunications
- Cement
- Energy
Major companies impacted include:
- MTN Nigeria
- Dangote Cement
- Nigerian Breweries
- BUA Foods
- Nestlé Nigeria
- Cadbury
- Lafarge Africa (WAPCO)
- Aradel Holdings
Revenue vs Profit: A Tale of Two Outcomes
Despite a 64.38% rise in combined revenue to N13.45 trillion, the companies saw their aggregate pre-tax profits fall by 6.03% to N332.23 billion—mainly due to FX losses.
MTN Nigeria: Biggest Hit
MTN Nigeria topped the list with a total FX loss of N925.36 billion—42.65% of the total. This figure was 25% higher than the previous year.
Breakdown:
- Realized losses: N562 billion (60.73%)
- Unrealized losses: N363 billion (39.27%)
As a result, MTN’s pre-tax loss jumped by 209% to N550.33 billion in 2024.
Nestlé Nigeria: 113% Surge in Pre-Tax Loss
Nestlé Nigeria reported a 49% year-on-year increase in FX losses to N290.7 billion, representing 13.4% of the total industry loss.
Breakdown:
- Realized: N57.6 billion
- Unrealized: N233.1 billion
This pushed Nestlé’s pre-tax loss up by 113% to N221.59 billion.
Dangote Group: Dual Losses from Cement and Sugar
The Dangote Group reported N458.23 billion in FX losses:
- Dangote Cement: N249.32 billion
- Dangote Sugar: N208.90 billion
While Dangote Cement grew pre-tax profit by 34% to N732.54 billion, Dangote Sugar’s performance worsened, recording a 149% increase in pre-tax loss to N270.89 billion.
BUA Group: N265 Billion FX Hit
BUA Group’s combined FX losses amounted to N265.4 billion:
- BUA Foods: N173.29 billion (up 112%)
- BUA Cement: N92.11 billion (up 32%)
Despite the losses, BUA Foods maintained a strong 17% profit margin, second only to Aradel Holdings.
Nigerian Breweries: Modest FX Growth, Heavy Impact
Nigerian Breweries reported an FX loss of N157.6 billion, up 2.78% from 2023.
The company reduced FX exposure using funds from a Rights Issue. As a result:
- Operating profit rose by 145%
- Net finance costs fell by 75%
- Returned to profitability in Q4 2024
Still, pre-tax loss rose by 26% to N182.42 billion.
Cadbury Nigeria: FX Losses Down, Still in the Red
Cadbury recorded an FX loss of N28.31 billion, a 24.6% drop from 2023.
Breakdown:
- Realized: N26.05 billion
- Unrealized: N2.26 billion
This reduction helped lower pre-tax loss by 12% to N28.33 billion.
Lafarge (WAPCO): Mixed FX Results
WAPCO reported:
- Realized FX loss: N24.87 billion (up from N6.13 billion)
- Unrealized FX gain: N600 million (vs N14.91 billion loss in 2023)
Despite the gain, WAPCO’s net FX loss rose to N24.27 billion, up 15.3% year-on-year.
Aradel Holdings: Highest Growth in FX Loss
Aradel Holdings recorded a net FX loss of N19.62 billion in 2024.
Breakdown:
- Realized loss: N28.97 billion
- Offsetting gain: N9.35 billion
This marked a 133% increase from its 2023 loss of N8.39 billion—the highest growth rate among the reviewed companies.
Bottom Line: FX Losses Erode Profits
The N2.17 trillion in FX losses show just how hard naira volatility hit Nigerian businesses in 2024.
Even companies with strong revenues saw their profits wiped out. Firms like MTN, Nestlé, and Dangote Cement faced major setbacks despite top-line growth.
While some companies have taken steps to reduce FX risk, the outlook remains uncertain, hinging heavily on currency stability and macroeconomic conditions in 2025.
