After enduring severe foreign exchange (FX) losses and skyrocketing finance costs triggered by Nigeria’s currency devaluation in 2023, Nigerian companies are now enjoying a strong recovery, posting record profits and restoring investor confidence.
In June 2023, Nigeria floated the naira, leading to a sharp depreciation from around ₦460 per dollar to as low as ₦1,535 per dollar by the end of 2024. The devaluation wreaked havoc across industries, particularly in the consumer goods and ICT sectors, where companies recorded massive FX translation losses and soaring interest expenses.
According to Nairametrics, FX losses among major firms surged by 56 percent year on year to hit ₦1 trillion in 2024. Finance costs also spiked by 131 percent, totaling ₦365 billion. Only a handful of companies, such as BUA Foods and NASCON, managed to remain profitable during the financial storm.
Among the worst hit was MTN Nigeria. The telecom giant posted a pre tax loss of ₦178 billion in 2023, which ballooned to ₦550 billion in 2024. Over the two year period, MTN racked up ₦1.67 trillion in FX losses, wiping out shareholder equity and pushing the company into a negative net worth exceeding ₦458 billion.
Turning the Corner
By late 2024, the tides began to turn. FX volatility eased, market liquidity improved, and the naira showed signs of stabilization. Companies took swift action, restructuring operations, renegotiating foreign liabilities, and adjusting pricing strategies to restore profitability.
The impact of these reforms became evident in the first quarter of 2025. Seven leading consumer goods firms that collectively posted ₦418 billion in pre tax losses in the first quarter of 2024 rebounded with a combined profit of ₦289.8 billion in the same period this year.
Profits Soar, Confidence Returns
Investor sentiment has also rebounded. MTN Nigeria emerged as the most capitalized stock on the Nigerian Exchange (NGX) by July 2025, with a share price of around ₦480 and a market valuation exceeding ₦10.1 trillion. Other notable players including Nigerian Breweries, Airtel Africa, Dangote Cement, and BUA Foods either joined or reaffirmed their status in the prestigious billion dollar club.
An independent analysis by BusinessDay revealed that Nigeria’s largest listed companies recorded a combined profit of ₦2.47 trillion in the first half of 2025, more than double the ₦1.15 trillion earned in the same period last year. This dramatic turnaround is largely attributed to FX stabilization and strategic cost management.
Outlook
The rebound signals a renewed sense of optimism in Nigeria’s corporate landscape. Improved macroeconomic stability, stronger corporate governance, and investor friendly policies are setting the stage for sustained growth in the second half of 2025 and beyond.
