Eight Firms Record N918.1bn Loss on Currency Revaluation

Eight firms have declared N918.1bn as currency revaluation loss following a 68.55 percent decline in the value of the naira against the dollar as of the end of September 2023.

Following a Central Bank of Nigeria, CBN move in June to allow the market to determine the value of the local currency, the naira had fallen from 461/$1 as of December 2022 to 777/$1 in September 2023.

An analysis of the financial statements of these firms showed that the devaluation of the naira from N465/$ at the end of May 2023 to N776.79/$ gave rise to this recorded exchange loss.

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

According to the World Bank, the naira is one of the worst-performing currencies in Africa, losing nearly 40 percent of its value since June.

This has negatively impacted firms like Dangote Sugar which recorded a revaluation loss of N90.99bn.

According to experts, the forex loss recorded by the firms was expected given the economic headwinds businesses have had to deal with in 2023.

They also highlighted that most of the firms impacted had foreign loans or obligations