Eight companies have reported a total currency revaluation loss of N918.1bn, attributing it to a 68.55% decline in the value of the naira against the dollar.

Following the Central Bank of Nigeria’s decision to let the market determine the naira’s value, it fell from 461/$1 in December 2022 to 777/$1 in September 2023.

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The firms affected include Dangote Sugar Refinery, Dangote Cement, Nestle Nigeria, Nigerian Breweries, Guinness Nigeria, MTN Nigeria Communications, Airtel Africa, MRS Oil Nigeria, and Seplat Energy.

The World Bank notes the naira is among the worst-performing currencies in Africa, losing nearly 40% of its value since June.

This has adversely impacted firms such as Dangote Sugar, which recorded a revaluation loss of N90.99bn.

Dangote Sugar explained that the revaluation loss is part of N90.997bn for the group (N90.42bn for the company).

Dangote Cement recorded a revaluation loss of N99.02bn, Nestle reported a loss of N143.4bn, MRS Oil recorded N2.37bn, and Seplat recorded N16.38bn.

Nigerian Breweries declared a revaluation loss of N86.83bn, while MTN Nigeria reported a forex loss of N232.8bn on its net foreign currency liabilities.

Airtel’s foreign exchange loss after tax was $317m (N246.31bn). Experts suggest the forex losses were expected given the economic challenges in 2023, with many of the impacted firms having foreign loans or obligations.

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Ayodeji Ebo, Managing Director/Chief Business Officer of Optimus by Afrinvest, stated, “they were all using the I& E window rate, which was over N460; now they have to use the current rate, which is over N750, which is massive, and that has led to significant FX losses.”