Forex harmonisation: MTN has just posted a huge N131.4 billion loss in forex assets with its earnings dropping a massive 64%. This is the latest in a series of Nigerian companies posting big losses with the unification of the exchange rate by the 2-month-old Nigerian government.
Airtel Africa Plc, Nestle Nigeria, Dangote Cement, Nigeria Breweries Plc similarly reported that they lost $151m, N123.7 billion, N103.8 billion, N70.6 billion respectively to the single exchange rate policy. These losses have impacted their profits significantly.
UAC Plc on the other hand reported a second quarter forex exchange rate gain of N3.5 billion which contributed over three-quarters to its declared profit. SAHCO Plc also posted profits aided by gain made from forex. Many Banks are expected to make similar gains depending on their ratios of ‘forex’ assets to liabilities.