In the wake of a 68.55 percent decline in the value of the naira against the dollar by the end of September 2023, eight prominent firms have collectively declared a staggering N918.1 billion in currency revaluation losses.

This significant downturn is a direct consequence of the Central Bank of Nigeria’s decision in June to let market forces determine the value of the local currency.

As a result, the naira plummeted from 461/$1 in December 2022 to 777/$1 in September 2023.

ALSO READ: Big companies struggle with high costs as energy bills reach N221 billion

The affected companies, including Dangote Sugar Refinery, Dangote Cement, Nestle Nigeria, Nigerian Breweries, Guinness Nigeria, MTN Nigeria Communications, Airtel Africa, MRS Oil Nigeria, and Seplat Energy, witnessed a devaluation of the naira from N465/$ at the end of May 2023 to N776.79/$, leading to substantial recorded exchange losses.

Dangote Cement recorded a revaluation loss of N99.02 billion, Nestle reported a loss of N143.4 billion, and MRS Oil incurred a loss of N2.37 billion, among others.

Nigerian Breweries faced a N86.83 billion revaluation loss, while MTN Nigeria recorded a forex loss of N232.8 billion on its net foreign currency liabilities.

Experts attribute these losses to the economic challenges faced by businesses in 2023. Most of the affected firms reportedly had foreign loans or obligations, exacerbating the impact of the naira’s devaluation.

In an effort to shed light on the situation, companies such as MTN Nigeria and Airtel Africa shared insights into their financial challenges.

MTN Nigeria acknowledged issues with raising foreign exchange for its capital expenditure needs, utilizing trade lines to fund network capex investments amid a prolonged forex scarcity.

ALSO READ: NIMC resolves over 2.5 million backlog of NIN modifications

Airtel Africa reported a foreign exchange loss after tax of $317 million (N246.31 billion), citing the devaluation of the Nigerian naira in June 2023.

Industry experts, including Ayodeji Ebo, Managing Director/Chief Business Officer of Optimus by Afrinvest, noted that the forex losses were anticipated given the economic headwinds in 2023.

They emphasized that many impacted companies had been using the I & E window rate, and the shift to the current rate, exceeding N750, significantly contributed to substantial FX losses.