Top 5 companies report N1.7 trillion FX Losses in FY 2024

TOP five publicly listed companies in Nigeria have reported a combined foreign exchange (FX) loss of N1.7 trillion in their Full-Year 2024 financial results, surpassing the losses recorded in 2023.

They are: MTN Nigeria, Dangote Cement, Nigerian Breweries Nestle and BUA Foods.

According to a report by Financial Derivatives Company Limited, the significant depreciation of the Naira, which weakened by an average of 50 percent between 2023 and 2024, played a major role in these losses.

While the sharp decline in the exchange rate remains a key factor in corporate underperformance, several additional challenges have impacted earnings across industries.

“Companies failing to embrace digital transformation are losing their competitive edge in an increasingly tech-driven market.

Delays in production caused by import bans, logistics challenges, and global supply chain disruptions have slowed business operations.

“Frequent policy shifts, overregulation, and excessive taxation have created uncertainties, making long-term business planning difficult,” it stated.

It’s also stated that increased interest rates have made debt servicing and financing expansion projects more expensive, limiting business growth.

The rising cost of raw materials, energy, and labor has also reduced profit margins, further weakening financial performance.

High inflation and a weaker Naira have eroded purchasing power, leading to lower demand for goods and services.

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