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Forex Woes: Eight Manufacturers, Including Dangote And BUA, Report N627bn Losses

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Forex Woes: Eight Manufacturers, Including Dangote And BUA, Report N627bn Losses

The first quarter of 2024 has seen eight prominent manufacturers, including industry giants like Dangote, BUA, and Lafarge, grappling with substantial forex-related losses amounting to N627.7 billion, according to a recent analysis of financial statements by The PUNCH…….CONTINUE READING....KINDLY READ THE FULL STORY HERE▶

 

 

The depreciation of the Nigerian naira, particularly evident since the beginning of the year, has significantly impacted organized businesses across various sectors. The naira’s decline reached a peak in February, reaching as high as N1,900 against the dollar in the parallel market.

For companies with forex-denominated obligations, the devaluation of the naira necessitated the revaluation of these obligations, leading to substantial losses. Lafarge Africa Plc, for instance, reported a forex loss of N21.8 billion, contributing to a decline in both pre-tax and post-tax profits.

Similarly, Dangote Cement and BUA Cement recorded forex losses of N63.77 billion and N10.06 billion, respectively, despite their revenue growth in the first quarter of 2024.

In the food and beverage sector, Nestle Nigeria reported a staggering forex loss of N166.9 billion, resulting in a net loss of N142.7 billion for the quarter. Dangote Sugar also faced forex challenges, reporting a loss of N102.9 billion in the same period.

The brewing industry was not spared, with International Breweries and Nigerian Breweries reporting forex losses of N162.2 billion and N72.8 billion, respectively. These losses have added to the financial woes of the companies, exacerbating their already challenging operating environment.

Despite efforts to mitigate the impact of forex volatility, such as increasing prices and managing costs, manufacturers continue to grapple with the unpredictability of currency fluctuations. Ayodele Abioye, Managing Director of BUA Foods, highlighted the significant challenge posed by FX dependency, emphasizing the need for proactive strategies to navigate the current economic landscape.

While forex-related losses present significant challenges for manufacturers, experts note that these losses may not always translate into actual cash flow losses and are often unrealized until forex obligations are fully paid. Nonetheless, the mounting forex woes underscore the urgent need for effective risk management strategies and policy interventions to support businesses in weathering economic uncertainties.

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The Ultimate Political Verdict: Wike Says Tinubu Solved Nigeria’s Toughest Identity Crisis.

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The Minister of the Federal Capital Territory (FCT), Nyesom Wike, has declared that President Bola Tinubu has successfully resolved the political and religious tensions that once surrounded the All Progressives Congress (APC) Muslim-Muslim presidential ticket.....KINDLY READ THE FULL STORY HERE▶

Speaking during an interview on TVC News, Wike reflected on the 2023 general elections, admitting that the same-faith ticket initially caused deep concerns, prompting all of his own children to support the Labour Party candidate, Peter Obi. However, he noted that public perception has since shifted, with many realizing that the initial fears were misplaced.

Key Highlights from the Interview:

  • Shifting Public Sentiment: Wike stated that the intense religious campaigns and anxieties surrounding the ticket have dissipated, noting that people who were previously carried away by identity politics no longer view it as a problem.

  • Dismissal of Peter Obi’s 2027 Prospects: The FCT Minister asserted that Peter Obi—whom he referenced as the presidential candidate of the Nigeria Democratic Congress (NDC)—cannot win the upcoming 2027 presidential election.

  • Political Verdict on Tinubu: Praising the administration’s current standing, Wike concluded that President Tinubu has effectively put the Muslim-Muslim ticket controversy to rest through governance.

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Mass Exodus! Oyo APC Crumbles As Governor Makinde Welcomes Swarm Of Defectors To APM

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A massive political shift has hit Oyo State as thousands of All Progressives Congress (APC) supporters—led by Ajiboye Sangogade, popularly known as “Boye Nation”—formally defected to the Allied Peoples Movement (APM).....KINDLY READ THE FULL STORY HERE▶

The defectors, consisting of loyalists and a Personal Assistant to former Minister of Power Adebayo Adelabu from various local government areas, were officially welcomed by Oyo State Governor Seyi Makinde. The reception took place during the Boye Nation/JAF Movement Mega Concert held at the Lekan Salami Sports Complex, Adamasingba, Ibadan.

Key Highlights of the Event:

  • Optimism for 2027: Governor Makinde expressed absolute confidence that the massive turnout signifies impending victory, declaring that the APM is poised to win across all levels in the 2027 general elections.

  • Attacks on Opposition: Makinde urged APC governorship candidate Sharafadeen Alli to focus on marketing his own candidacy rather than criticizing the current administration. The governor also questioned Alli’s professional legal record, contrasting it with the recognized professional qualifications of the APM’s own candidates.

  • Response on Public Infrastructure: Addressing criticisms regarding the use of diesel generators for streetlights, Makinde blamed the Federal Government for failing to resolve the country’s persistent electricity challenges, reminding the public of prior campaign promises regarding power.

  • Star-Studded Convergence: The event, themed “Young, United, Unstoppable (YUU),” featured vibrant musical performances by prominent Fuji artists and was attended by top government functionaries, national assembly members, and APM senatorial candidates including Shina Peller and Dhikrullahi Stanley Olajide.

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“We Will Decide Who Wins IPOB’s Ominous Declaration Sends Shockwaves Through Nigeria’s 2027 Political Scene

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The Indigenous People of Biafra (IPOB) has declared that it will enforce a total boycott of the 2027 general elections in the South-East and surrounding regions unless the Federal Government expedites the pending appeal of its leader, Nnamdi Kanu.....KINDLY READ THE FULL STORY HERE▶

According to a statement issued by Chris Nwaogu, Head of the Fourth Administrator Directorate of State (DOS) for IPOB, the group described the proposed election boycott as a definitive promise rather than a mere threat, placing the onus entirely on the authorities to avert it.

Key Highlights:

  • Demands for Legal Action: IPOB has challenged authorities to ensure that Nnamdi Kanu’s appeal is officially listed and heard, stating that anyone seeking to stop the boycott should engage directly with the ruling government rather than the group.

  • Strategy Kept Under Wraps: The group noted that details regarding how the boycott will be executed will remain undisclosed until closer to the elections to prevent politicians from hijacking the process or inciting violence.

  • Warnings Against Violence: While pushing for the boycott, IPOB cautioned against using the movement as an excuse to cause disruptions, attack property, or sabotage political rallies.

  • Allegations in Enugu State: The group condemned the alleged deployment of political thugs to disrupt opposition rallies and ward meetings—specifically pointing to incidents in Nkanu West where people were reportedly shot and property destroyed—and warned that such intimidation would soon be resisted.

  • Judicial Criticisms: IPOB reiterated its grievances regarding the handling of Nnamdi Kanu’s trial, questioning the delay in his appeal and criticizing prior judgments delivered by Justice James Omotosho under the Terrorism Act and the Nigerian Constitution.

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