Nigerian businesses are at last coming back after two trying years of currency depreciation. From N460 per dollar in June 2023 to over N1,530 by the end of 2024, the float of the naira mid-2023 set off one of the most rapid currency decreases in the country’s records.
Particularly for companies in the consumer products and ICT industries, this sharp depreciation resulted in significant foreign currency losses, increasing funding costs, and diminished shareholder value.
Consumer goods firms were hit the most. Seven industry leaders including Nestlé, Cadbury, Nigerian Breweries, and Dangote Sugar, had racked up collective losses of more than N867 billion by the end of 2024. During this downturn, only BUA Foods and NASCON remained profitable .Additionally suffering N1 trillion in foreign exchange losses and finance expenses that more than quadrupled in a year, the industry was also under strain.
MTN Nigeria came out as one of the worst hit in the ICT sector. With cumulative FX losses of over N1.6 trillion and N669 billion in financing costs spanning 2023 and 2024, the company’s retained losses of N607 billion decreased shareholders’ equity into negative territory by December 2024.
But the narrative started to shift toward the end of 2024. The naira found a more stable range, and the market for exchanges settled .Companies were able to better manage operating expenses, reorganize FX liabilities, and increase income with this assistance.
Recovery was well underway by the first quarter of 2025 . With a combined pretax profit of N289.8 billion, the seven largest consumer goods corporations dramatically turned from their previous N418 billion loss.In Q1, too, MTN Nigeria shifted from a loss of N575.7 billion to a profit of N202.6 billion.
The drive had picked up strength by the second quarter’s close.MTN posted a H1 2025 profit of N622.26 billion and trimmed retained losses to N192.8 billion. Consumer products companies together earned N264 billion in profit with FX losses under N1 billion.
This amazing comeback highlights how quickly business performance may be changed by financial discipline and a steady forex policy. Investors have taken note; MTN is now the most valued company on the NGX; Cadbury and Nigerian Breweries have re-joined the exclusive billion-dollar valuation club.
