…Losses drop to N28.7bn from N951.7bn in three months
Foreign exchange (FX) losses of major companies in Nigeria fell in the first quarter (Q1) of 2025 on the back of relative stability of the naira.
A BusinessDay survey of 16 companies across six sectors—telecommunications, consumer goods, cement, breweries, oil and gas, and healthcare—revealed a dramatic drop in FX losses of the firms from N951.7 billion in Q1 2024 to N28.7 billion in the corresponding period of 2025. This represents a 33-time drop from the same quarter of 2024.
It was found that some companies even reported FX gains during the period.
Read also: Why naira stability is the cornerstone of Nigeria’s economic future
Telecommunications and fast-moving consumer goods (FMCG) companies led the pack. Other sectors like cement, brewery, oil and gas, and healthcare, which had previously recorded sharp FX losses due to the naira’s sharp depreciation following the Central Bank of Nigeria’s (CBN)’s unification of exchange rates in 2023, indicated a relatively calmer outlook as the local currency found its footing in Q1.
Companies such as Fidson Healthcare Plc, MeCure Industries Plc, Nascon Allied Industries Plc, Nestlé Nigeria Plc, BUA Cement, Dangote Cement, International Breweries, Nigerian Breweries, MTN Nigeria, and TotalEnergies Marketing Nigeria Plc all reported a decline in FX losses during the surveyed period.
Specifically, MTN Nigeria, Nestlé Nigeria, and BUA Cement reduced their FX losses to N5.53 billion, N3.58 billion, and N837 million, respectively.
Lafarge Africa Plc, MRS Oil, Aradel Holdings, Cadbury Nigeria Plc, BUA Foods, and Dangote Sugar Refinery reported combined FX gains of N2.96 billion, reversing a previous FX loss of N185.1 billion in Q1 of 2024.
Analysts attribute the naira’s recent stability to a combination of strategic policy interventions by the Central Bank of Nigeria (CBN) and strong foreign currency earnings by firms.
The naira appreciated against the dollar in one month to February 17, gaining N105 year-to-date in the parallel market, popularly called black market. At the official market, the naira strengthened against the dollar by 1.8 percent between January and February 2025. The currency stabilised in Q1 despite intermittent falls over the period.
Read also: Nigerians expect naira stability to ease hardship
“The improvement in FX conditions has brought a degree of relief to our cost structure,” said a senior executive at a leading FMCG company who spoke on condition of anonymity.
“While challenges remain, especially with access to dollars, the reduction in valuation losses on our dollar-denominated liabilities is significant.”
Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), said: “The worst of the FX-driven losses for corporates might be behind us if current trends persist.”
He said the return of some measure of predictability in the FX market “is a positive development for balance sheet planning and foreign investor sentiment.”
However, companies warn that risks remain. Persistent inflation, high interest rates, and sporadic dollar supply are ongoing concerns, especially for businesses that rely heavily on imported raw materials and equipment.
Nigeria’s inflation rate climbed to 24.23 percent in March 2025, marking the first rise since the recent rebasing and defying analysts’ expectations of a slowdown. The latest Consumer Price Index (CPI) data released by the National Bureau of Statistics (NBS) show a notable rise from February’s figure of 23.18 percent.
Similarly, the International Monetary Fund (IMF) recently projected that Nigeria’s headline inflation would average 26.5 percent in 2025, following the rebasing of the CPI by the NBS.
