A significant easing of foreign exchange pressures appears to be underway for leading Nigerian companies, as evidenced by a dramatic 98% year-on-year decrease in net foreign exchange losses during the first quarter of 2025.
Data compiled by Nairametrics from the unaudited financial statements of ten major Nigerian companies reveals a combined net foreign exchange loss of N22.114 billion in Q1 2025. This figure represents a substantial reduction compared to the staggering N1.179 trillion in net foreign exchange losses reported by the same companies in the first quarter of 2024.
The ten companies analyzed operate across various sectors of the Nigerian economy, including consumer goods, telecommunications, cement, and oil and gas. These include prominent names such as MTN Nigeria, Dangote Cement, Dangote Sugar, Nigerian Breweries, BUA Foods, BUA Cement, Nestlé, Cadbury, Lafarge Africa, and Aradel Holdings.
This notable decline in FX losses suggests a potential stabilization or improvement in the foreign exchange environment that has challenged Nigerian businesses since the inception of the current administration. The Q1 2025 figures stand in stark contrast not only to the losses incurred in Q1 2024 but also to the full financial year (FY) results of 2023 and 2024, indicating a positive shift in the financial landscape for these key players in the Nigerian economy.
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