Nigeria’s manufacturing sector continues to feel the pinch of unstable foreign exchange rates, as top firms recorded a combined N1.91 billion forex loss in the first quarter of 2025. This was revealed through their unaudited financial statements for the period ended March 31, 2025, and represents a significant economic challenge for manufacturers operating in a volatile business environment.
The companies affected include Nascon Allied Industries Plc, BUA Cement, Nigerian Breweries, Dangote Cement, Vitafoam Nigeria, Beta Glass, and Berger Paints—all major players listed on the Nigerian Exchange Limited (NGX).
Despite the tough economic climate, the Q1 2025 cumulative FX loss of N1.91 billion marks a 37.8% improvement compared to the N3.06 billion loss reported during the same period in 2024. However, the breakdown reveals mixed fortunes for individual firms.
Nascon Allied Plc saw a remarkable turnaround, reporting a forex loss of N55.38 million, significantly better than the N3.06 billion loss it posted in Q1 2024. This turnaround is viewed as a positive development amidst a challenging forex environment, possibly due to improved financial strategies or reduced exposure to foreign-denominated obligations.
In contrast, BUA Cement moved from a gain to a loss. The company recorded a foreign exchange loss of N262.71 million, a 123.6% reversal compared to the N1.11 billion gain recorded in the same quarter of 2024. This reflects the broader economic headwinds affecting the cement industry, such as increased import costs and exposure to forex market fluctuations.
Nigerian Breweries, another heavyweight in the manufacturing sector, posted a loss of N178.01 million, which is a dramatic improvement from the massive N72.85 billion forex loss reported in Q1 2024. Though still negative, the difference shows significant progress in stabilizing its forex operations.
For Dangote Cement, the quarter ended with a forex loss of N11.84 million, a sharp downturn from the N410.36 million gain seen in Q1 2024. This 102.9% drop mirrors the pressures facing firms with high foreign exposure, particularly in raw material imports and loan repayments.
Vitafoam Nigeria Plc posted one of the largest forex losses among the group with N1.31 billion, skyrocketing from N47.18 million in Q1 2024. This massive 2,687.7% increase highlights the company’s struggle with import-related expenses and forex-dependent inputs, further squeezing its bottom line.
Beta Glass Plc saw its forex loss grow to N94.22 million in Q1 2025, compared to N21.98 million last year—a 329.2% rise that reflects mounting challenges in the packaging and industrial materials segment due to import reliance.
Berger Paints Nigeria Plc, in comparison, experienced a minimal loss of N768, a slight move from zero in Q1 2024. While the amount is negligible, it still signals the far-reaching impact of forex instability, even for companies with smaller foreign exposure.
The overall decline in total forex losses from N3.06 billion in Q1 2024 to N1.91 billion in Q1 2025 suggests that some manufacturers may be adapting their operations—possibly sourcing more local inputs or adjusting pricing strategies to hedge against currency risks.
However, it is worth noting that for the full year 2024, six NGX-listed manufacturing firms reported a staggering N255.72 billion in combined forex losses. This underlines how deeply the naira’s instability has affected Nigeria’s industrial base and casts a shadow over long-term profitability and investor confidence.
With no clear sign of exchange rate stabilization yet, manufacturers remain under pressure, and foreign exchange management will likely continue to dominate corporate strategies in the months ahead.
