Foreign Exchange Pressure Eases For Nigerian Companies As Q1 2025 Losses Drop By 98%

The foreign exchange (FX) crisis that has plagued Nigerian companies since the start of the current administration is showing signs of easing, as reflected in the dramatic reduction in FX losses reported in Q1 2025 compared to previous quarters.

Ten of Nigeria’s leading listed companies across consumer goods, telecommunications, cement, and oil & gas sectors recorded a combined net FX loss of N22.11 billion in Q1 2025—down sharply from the N1.179 trillion loss recorded in Q1 2024, based on data from their unaudited financial statements.

These companies include MTN Nigeria, Dangote Cement, Dangote Sugar, Nigerian Breweries, BUA Foods, BUA Cement, Nestlé Nigeria, Cadbury, Lafarge Africa, and Aradel Holdings. The easing FX burden contributed to stronger earnings across the board, with all ten firms reporting improvements in their bottom lines thanks to more favorable currency conditions.

Companies like MTN Nigeria, Nestlé, Dangote Cement, BUA Cement, and Nigerian Breweries reported significant declines in FX losses. Others—Dangote Sugar, BUA Foods, Cadbury, Lafarge Africa, and Aradel Holdings—even recorded FX gains in Q1 2025, reversing the heavy losses of previous periods. This trend helped drive a 252% surge in combined pre-tax profits, which hit N998.1 billion, compared to a pre-tax loss of N656 billion in Q1 2024. The Q1 2025 result also surpasses the combined pre-tax profits recorded for both FY 2023 and FY 2024.

The improvements are largely attributed to a more stable naira, enhanced FX liquidity, reduced exposure to foreign debt, and proactive risk management strategies. In contrast, earlier periods were marred by the sharp devaluation of the naira following the FX unification policy launched in June 2023.

To illustrate the scale of the naira’s depreciation:

• It opened 2023 at N461.50/$1,
• Closed 2023 at N907.11/$1,
• Ended 2024 at N1,535/$1.
  By March 2025, the rate had stabilized, closing at N1,537/$1.

Company Breakdown

• Dangote Cement recorded a net FX loss of N17.47 billion in Q1 2025, down 72.6% from N63.77 billion in Q1 2024 and far below its FY 2024 and FY 2023 losses of N249 billion and N164 billion, respectively. This contributed to a Q1 2025 pre-tax profit of N311.97 billion, up from N166.4 billion a year earlier. However, the company still holds the largest debt profile, totaling N2.26 trillion.
• MTN Nigeria posted an FX loss of N5.53 billion in Q1 2025—significantly lower than the N656.4 billion loss a year earlier. The telecom giant reported a pre-tax profit of N202.65 billion in Q1 2025, rebounding from a N575.69 billion pre-tax loss in Q1 2024.
• BUA Cement reduced its FX loss to N837 million, a 91.7% drop from N10 billion in Q1 2024. This led to a 369% YoY surge in pre-tax profit to N99.74 billion.
• Nigerian Breweries saw FX losses shrink to N178 million from N72.85 billion a year earlier. This turnaround fueled a N69.99 billion pre-tax profit, compared to a N65.47 billion pre-tax loss in Q1 2024.
• Nestlé Nigeria slashed its FX loss to N163 million in Q1 2025, from a staggering N191.67 billion in Q1 2024 and N290.7 billion in FY 2024. It returned to profitability, reporting N51.16 billion in pre-tax profit versus a N196.1 billion pre-tax loss in Q1 2024.
• Dangote Sugar Refinery posted a N102 million FX gain in Q1 2025, compared to a N102.98 billion loss in Q1 2024. Its pre-tax loss narrowed to N22.63 billion from N106.86 billion a year earlier.
• Cadbury Nigeria recorded a N178 million FX gain, reversing the N11.55 billion FX loss in Q1 2024. The company reported a pre-tax profit of N8.54 billion, compared to a pre-tax loss of N10.46 billion a year earlier.
• Aradel Holdings posted an FX gain of N220 million in Q1 2025, compared to a N21.32 billion loss in Q1 2024. This contributed to a 70% YoY increase in pre-tax profit, which reached N67 billion.
• BUA Foods posted a N486 million FX gain in Q1 2025, reversing a N27.29 billion loss in Q1 2024. Interest expenses also dropped by 75% to N3.77 billion. Pre-tax profit surged by 119% to N136 billion—almost half its FY 2024 profit.
• Lafarge Africa (WAPCO) turned its N21.8 billion FX loss in Q1 2024 into a N1.08 billion gain in Q1 2025. This helped pre-tax profit soar by 739.5% to N73.11 billion, making it the top performer among the companies reviewed.