Naira stability drives corporate rebound as FX losses drop in Q1 2025 

Nigeria’s embattled corporate sector is showing strong signs of recovery amid easing foreign exchange pressures, with new data revealing a dramatic reduction in forex-related losses in the first quarter of 2025.

A review of unaudited financial statements from ten major publicly listed companies shows that combined net foreign exchange losses plummeted to N22.1 billion in the first quarter of 2025, down from a staggering N1.18 trillion in the same period last year.

The data points to a sharp turnaround for firms that had been battered by the fallout of Nigeria’s 2023 foreign exchange liberalization.

The companies surveyed include MTN Nigeria, Dangote Cement, BUA Cement, BUA Foods, Nestlé Nigeria, Nigerian Breweries, Dangote Sugar Refinery, Lafarge Africa (WAPCO), Aradel Holdings, and Cadbury Nigeria.

The massive forex losses in 2023 and 2024 were primarily due to the devaluation of the naira following the federal government’s forex unification policy introduced in June 2023.

The naira depreciated from N461.50/$1 in January 2023 to N1,535/$1 by the end of 2024. However, by March 2025, the currency had stabilized, trading at N1,537/$1, providing a measure of relief to firms with dollar-denominated obligations.

Dangote Cement reported the highest forex loss in the quarter at N17.47 billion, but this was a 72.6 per cent drop from N63.77 billion a year earlier.

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MTN Nigeria slashed its forex losses from N656.4 billion in the first quarter of 2024 to N5.53 billion, helping it post a pre-tax profit of N202.65 billion, compared to a N575.69 billion loss a year earlier.

BUA Cement cut forex losses by over 91 per cent, to N837 million, while its pre-tax profit jumped 369 per cent to N99.74 billion. Nigerian Breweries saw forex losses tumble to N178 million from N72.85 billion, turning a N65.47 billion loss into a N69.99 billion profit.

Nestlé Nigeria reduced forex losses to N163 million, down from N191.67 billion, swinging to a N51.16 billion profit from a N196.1 billion loss.

Dangote Sugar Refinery posted a forex gain of N102 million, compared to a N102.98 billion loss a year earlier. Pre-tax losses also fell significantly.

BUA Foods reversed a N27.29 billion forex loss to a N486 million gain, while pre-tax profit more than doubled to N136 billion.

Analysts say the data signals a welcome shift in the macroeconomic landscape.

“The sharp drop in forex losses reflects improved currency stability and improved access to foreign exchange,” said Dr. Femi Adesina, Chief Economist at Lagos-based FutureEdge Analytics

“It’s a strong indicator that companies can now better plan and manage their foreign obligations without fear of sudden currency shocks.”

However, experts caution that challenges remain.

“While this recovery is promising, inflation and high borrowing costs continue to pressure margins,” noted Ijeoma Okafor, a financial analyst at Zenith Securities. “Sustained reform, disciplined fiscal policy, and enhanced forex liquidity will be essential to maintaining this growth trend.”