Search for an article

Select a plan

Choose a plan from below, subscribe, and get access to our exclusive articles!

Monthly plan

[tds_plans_price curr_txt=”$” price_color=”var(–today-news-white)” horiz_align=”content-horiz-center” f_price_font_family=”394″ f_price_font_weight=”700″ f_price_font_transform=”uppercase” f_price_font_size=”eyJhbGwiOiIzNCIsImxhbmRzY2FwZSI6IjMwIiwicG9ydHJhaXQiOiIyNiIsInBob25lIjoiMjgifQ==” f_price_font_line_height=”1.2″ f_price_font_spacing=”-2″ month_plan=”1″ def_plan=”monthly” tdc_css=”eyJhbGwiOnsibWFyZ2luLWJvdHRvbSI6IjUiLCJkaXNwbGF5IjoiIn0sImxhbmRzY2FwZSI6eyJtYXJnaW4tYm90dG9tIjoiMyIsImRpc3BsYXkiOiIifSwibGFuZHNjYXBlX21heF93aWR0aCI6MTE0MCwibGFuZHNjYXBlX21pbl93aWR0aCI6MTAxOSwicG9ydHJhaXQiOnsibWFyZ2luLWJvdHRvbSI6IjIiLCJkaXNwbGF5IjoiIn0sInBvcnRyYWl0X21heF93aWR0aCI6MTAxOCwicG9ydHJhaXRfbWluX3dpZHRoIjo3NjgsInBob25lIjp7Im1hcmdpbi1ib3R0b20iOiIzIiwiZGlzcGxheSI6IiJ9LCJwaG9uZV9tYXhfd2lkdGgiOjc2N30=”][tds_plans_description year_plan_desc=”JTJGeWVhcg==” month_plan_desc=”JTJGJTIwbW9udGg=” horiz_align=”content-horiz-center” free_plan_desc=”YmlsbGVkJTIwbW9udGhseQ==” color=”var(–today-news-white-transparent)” f_descr_font_family=”394″ f_descr_font_size=”eyJhbGwiOiIxMiIsImxhbmRzY2FwZSI6IjExIiwicG9ydHJhaXQiOiIxMCIsInBob25lIjoiMTEifQ==” f_descr_font_line_height=”1.3″ tdc_css=”eyJhbGwiOnsibWFyZ2luLWJvdHRvbSI6IjIwIiwiZGlzcGxheSI6IiJ9LCJsYW5kc2NhcGUiOnsibWFyZ2luLWJvdHRvbSI6IjE1IiwiZGlzcGxheSI6IiJ9LCJsYW5kc2NhcGVfbWF4X3dpZHRoIjoxMTQwLCJsYW5kc2NhcGVfbWluX3dpZHRoIjoxMDE5LCJwb3J0cmFpdCI6eyJtYXJnaW4tYm90dG9tIjoiMTIiLCJkaXNwbGF5IjoiIn0sInBvcnRyYWl0X21heF93aWR0aCI6MTAxOCwicG9ydHJhaXRfbWluX3dpZHRoIjo3NjgsInBob25lIjp7Im1hcmdpbi1ib3R0b20iOiIxNSIsImRpc3BsYXkiOiIifSwicGhvbmVfbWF4X3dpZHRoIjo3Njd9″][tds_plans_button tdc_css=”eyJhbGwiOnsibWFyZ2luLWJvdHRvbSI6IjAiLCJkaXNwbGF5IjoiIn19″ display=”full” horiz_align=”content-horiz-center” def_plan=”monthly” month_plan=”1″ f_txt_font_family=”394″ f_txt_font_weight=”700″ f_txt_font_transform=”uppercase” f_txt_font_spacing=”-0.5″ f_txt_font_size=”eyJhbGwiOiIxMyIsImxhbmRzY2FwZSI6IjEzIiwicG9ydHJhaXQiOiIxMSIsInBob25lIjoiMTIifQ==” f_txt_font_line_height=”1.2″ bg_color=”var(–today-news-white)” text_color=”var(–today-news-dark-bg)” bg_color_h=”var(–today-news-white-transparent)” padd=”eyJhbGwiOiIxM3B4IDE1cHggMTJweCIsImxhbmRzY2FwZSI6IjExcHggMTNweCAxMHB4IiwicG9ydHJhaXQiOiI5cHggMTBweCIsInBob25lIjoiMTFweCAxM3B4IDEwcHgifQ==”]

Yearly plan

[tds_plans_price price_color=”var(–today-news-white)” horiz_align=”content-horiz-center” f_price_font_family=”394″ f_price_font_weight=”700″ f_price_font_transform=”uppercase” f_price_font_size=”eyJhbGwiOiIzNCIsImxhbmRzY2FwZSI6IjMwIiwicG9ydHJhaXQiOiIyNiIsInBob25lIjoiMjgifQ==” f_price_font_line_height=”1.2″ f_price_font_spacing=”-2″ tdc_css=”eyJhbGwiOnsibWFyZ2luLWJvdHRvbSI6IjUiLCJkaXNwbGF5IjoiIn0sImxhbmRzY2FwZSI6eyJtYXJnaW4tYm90dG9tIjoiMyIsImRpc3BsYXkiOiIifSwibGFuZHNjYXBlX21heF93aWR0aCI6MTE0MCwibGFuZHNjYXBlX21pbl93aWR0aCI6MTAxOSwicG9ydHJhaXQiOnsibWFyZ2luLWJvdHRvbSI6IjIiLCJkaXNwbGF5IjoiIn0sInBvcnRyYWl0X21heF93aWR0aCI6MTAxOCwicG9ydHJhaXRfbWluX3dpZHRoIjo3NjgsInBob25lIjp7Im1hcmdpbi1ib3R0b20iOiIzIiwiZGlzcGxheSI6IiJ9LCJwaG9uZV9tYXhfd2lkdGgiOjc2N30=” year_plan=”2″ month_plan=”” def_plan=”annual” curr_txt=”$”][tds_plans_description year_plan_desc=”JTJGeWVhcg==” month_plan_desc=”JTJGJTIwbW9udGg=” horiz_align=”content-horiz-center” free_plan_desc=”YmlsbGVkJTIweWVhcmx5″ color=”var(–today-news-white-transparent)” f_descr_font_family=”394″ f_descr_font_size=”eyJhbGwiOiIxMiIsImxhbmRzY2FwZSI6IjExIiwicG9ydHJhaXQiOiIxMCIsInBob25lIjoiMTEifQ==” f_descr_font_line_height=”1.3″ tdc_css=”eyJhbGwiOnsibWFyZ2luLWJvdHRvbSI6IjIwIiwiZGlzcGxheSI6IiJ9LCJsYW5kc2NhcGUiOnsibWFyZ2luLWJvdHRvbSI6IjE1IiwiZGlzcGxheSI6IiJ9LCJsYW5kc2NhcGVfbWF4X3dpZHRoIjoxMTQwLCJsYW5kc2NhcGVfbWluX3dpZHRoIjoxMDE5LCJwb3J0cmFpdCI6eyJtYXJnaW4tYm90dG9tIjoiMTIiLCJkaXNwbGF5IjoiIn0sInBvcnRyYWl0X21heF93aWR0aCI6MTAxOCwicG9ydHJhaXRfbWluX3dpZHRoIjo3NjgsInBob25lIjp7Im1hcmdpbi1ib3R0b20iOiIxNSIsImRpc3BsYXkiOiIifSwicGhvbmVfbWF4X3dpZHRoIjo3Njd9″][tds_plans_button tdc_css=”eyJhbGwiOnsibWFyZ2luLWJvdHRvbSI6IjAiLCJkaXNwbGF5IjoiIn19″ display=”full” horiz_align=”content-horiz-center” def_plan=”annual” month_plan=”” f_txt_font_family=”394″ f_txt_font_weight=”700″ f_txt_font_transform=”uppercase” f_txt_font_spacing=”-0.5″ f_txt_font_size=”eyJhbGwiOiIxMyIsImxhbmRzY2FwZSI6IjEzIiwicG9ydHJhaXQiOiIxMSIsInBob25lIjoiMTIifQ==” f_txt_font_line_height=”1.2″ bg_color=”var(–today-news-white)” text_color=”var(–today-news-dark-bg)” bg_color_h=”var(–today-news-white-transparent)” padd=”eyJhbGwiOiIxM3B4IDE1cHggMTJweCIsImxhbmRzY2FwZSI6IjExcHggMTNweCAxMHB4IiwicG9ydHJhaXQiOiI5cHggMTBweCIsInBob25lIjoiMTFweCAxM3B4IDEwcHgifQ==” year_plan=”2″]

All plans include

  • Donec sagittis elementum
  • Cras tempor massa
  • Mauris eget nulla ut
  • Maecenas nec mollis
  • Donec feugiat rhoncus
  • Sed tristique laoreet
  • Fusce luctus quis urna
  • In eu nulla vehicula
  • Duis eu luctus metus
  • Maecenas consectetur
  • Vivamus mauris purus
  • Aenean neque ipsum
HomeBusinessEconomyManufacturing Sector Faces Severe Challenges with 400% Increase in Forex Losses

Manufacturing Sector Faces Severe Challenges with 400% Increase in Forex Losses

Published on

By Milcah Tanimu

The manufacturing sector in Nigeria is grappling with a significant increase in net foreign exchange losses, reaching N466 billion in the nine months ending September. This surge represents a staggering 400% rise compared to the N93.219 billion loss recorded in the same period the previous year. The unfavorable foreign exchange (forex) market regime, coupled with other challenges like the removal of oil subsidies and the Russia/Ukraine war, has created a difficult operating environment for manufacturing companies.

The financial reports of 17 top manufacturing companies listed on the Nigerian Exchange Limited (NGX) reveal the extent of the sector’s struggle. While the companies experienced a growth in gross earnings by 23.4% to N4.4 trillion in the first nine months of 2023, their combined Profit Before Tax (PBT) declined by 24.6% to N505.148 billion. This decline is attributed to multiple pressure points eroding their financial stability, including forex revaluation losses.

Manufacturers have faced increased costs in producing essential consumer goods due to inflation and rising prices of raw materials. In response, companies have raised product prices, leading to reduced consumer patronage as the purchasing power of individuals has been eroded by inflation.

The forex challenges have led to losses in foreign exchange revaluation, impacting profitability. Major manufacturing firms, including Nestle Nigeria, Dangote Cement, Nigerian Breweries, International Breweries, BUA Foods, BUA Cement, Cadbury Nigeria, GlaxoSmithKline, and others, reported significant forex revaluation losses, contributing to declines in their financial performance.

The devaluation of the Naira against the US Dollar, which plummeted from N448.04/US$ at the beginning of the year to N832.32/US$ by the end of September, further exacerbated the situation. Multinational companies in the manufacturing sector have been particularly affected, with some announcing plans to discontinue manufacturing operations in Nigeria due to the challenging operating environment.

The forex losses pose threats to the manufacturing companies’ existence, leading to layoffs, production cutbacks, and potential exits from the market. Analysts suggest that the losses will continue to impact companies until they implement measures such as hedging and repricing earning assets to recover from the losses.

Government intervention and engagement with manufacturers are seen as crucial to addressing the challenges faced by the sector and preventing further negative economic consequences. As companies pass on the increased costs to consumers, there are concerns about the potential impact on inflation and a slowdown in economic activity.

Latest articles

If Atiku Won 2023 Election, Nigeria’s Economy Would Be Worse – Presidency

President Bola Tinubu was smart to eschew former Vice President Atiku Abubakar's suggestion that...

CBN Announces New ₦5,000 & ₦10,000 Notes

  "In a bid to reduce cash handling challenges, the Central Bank of Nigeria (CBN)...

Society of Energy Editors hails Ojulari’s appointment as NNPCL GCEO

  Lagos -- The Society of Energy Editors, SEE, has commended the appointment of Engr....

Taraba Council Boss Lambast Tiv-Elders, Says the appointment of Ter Wukari is Laughable and Baseless

  By Nahum Sule, Jalingo The Chairman of Wukari local government area of Taraba State, Mr....

More like this

If Atiku Won 2023 Election, Nigeria’s Economy Would Be Worse – Presidency

President Bola Tinubu was smart to eschew former Vice President Atiku Abubakar's suggestion that...

CBN Announces New ₦5,000 & ₦10,000 Notes

  "In a bid to reduce cash handling challenges, the Central Bank of Nigeria (CBN)...

Society of Energy Editors hails Ojulari’s appointment as NNPCL GCEO

  Lagos -- The Society of Energy Editors, SEE, has commended the appointment of Engr....