Nigeria’s 2023 naira float triggered a steep currency devaluation, plummeting from N460/$1 in June 2023 to N1,535/$1 by December 2024, inflicting severe foreign exchange (FX) losses and financial strain on companies listed on the Nigerian Exchange (NGX). However, by Q2 2025, a stabilizing forex market, strategic cost management, and improved pricing power have driven a remarkable recovery, particularly in the consumer goods and ICT sectors, propelling firms like MTN Nigeria and BUA Foods back to profitability.
The devaluation’s impact was stark in 2023 and 2024. Seven major consumer goods firms—BUA Foods, Cadbury Nigeria, International Breweries, Nigerian Breweries, NASCON Allied Industries, Dangote Sugar, and Nestlé Nigeria—reported combined pre-tax losses of N867 billion over two years, including N507.57 billion in 2024 alone, up from N359 billion in 2023. FX losses soared 56% to N1 trillion in 2024, while finance costs surged 131% to N365 billion, driven by foreign-denominated loans and import-reliant operations. MTN Nigeria, a telecom giant, faced N1.67 trillion in FX losses, with N926 billion in 2024, pushing its shareholders’ equity to a negative N458 billion by year-end.
By late 2024, the naira stabilized within a predictable band, supported by Central Bank of Nigeria (CBN) reforms, including unified exchange rates and $4.1 billion in FX interventions in H1 2025. This stability, coupled with corporate restructuring, sparked a turnaround. In Q1 2025, the consumer goods sector flipped a N418 billion loss from Q1 2024 into a N289.8 billion pre-tax profit. Only Dangote Sugar reported a N23 billion loss, a significant improvement from N121 billion. FX losses dropped to a N2.511 billion gain, and interest expenses fell to N94 billion from N170.1 billion.
MTN Nigeria’s recovery was equally striking, posting a N202.6 billion pre-tax profit in Q1 2025, reversing a N575.7 billion loss from Q1 2024. By Q2, MTN’s pre-tax profit soared to N419.6 billion, reducing retained losses to N192.889 billion and boosting shareholders’ funds to N42 billion. The consumer goods group achieved a combined Q2 pre-tax profit of N264 billion, with FX losses shrinking to N896 million, led by Dangote Sugar’s drastic reduction from N208.903 billion to N160 million.
The rebound fueled investor optimism, with MTN Nigeria’s share price hitting N480, making it the NGX’s most valuable company at N10.1 trillion in market capitalization by July’s end. Nigerian Breweries and International Breweries joined the billion-dollar club, alongside Airtel Africa, Dangote Cement, and others. Cadbury Nigeria emerged as a top NGX performer, reflecting strong market confidence. With inflation easing to 22.22% in June and the naira trading at N1,565/$1, Nigeria’s corporate sector is poised for further growth if stability persists.
