Lagos, Nigeria – Two years after Nigeria’s historic naira float sent shockwaves through corporate earnings, a remarkable turnaround is underway. Companies that suffered N867 billion in consumer sector losses and N1.67 trillion in telecoms FX losses are now posting record profits, with MTN Nigeria leading the charge as the NGX’s first N10 trillion market cap firm.
The Crisis Years (2023-2024)
▸ Naira’s Collapse: Depreciated 234% from N460/$ (June 2023) to N1,535/$ (Dec 2024)
▸ Consumer Sector Carnage:
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7 major firms lost N867 billion over two years
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FX losses hit N1 trillion in 2024 alone (+56% YoY)
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Interest expenses surged 131% to N365 billion
▸ MTN’s Perfect Storm:
• N1.67 trillion FX losses (N926 billion in 2024)
• Negative equity of N458 billion by 2024 close
• Tower lease obligations crushed balance sheets
The 2025 Turnaround
Consumer Goods Revival:
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Q1 2025: N290 billion combined profit vs N418 billion loss (Q1 2024)
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FX gains of N2.5 billion vs N423 billion losses
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Interest costs halved to N94 billion
MTN’s Phoenix Rise:
• Q2 2025: N419.6 billion quarterly profit (H1 total: N622 billion)
• Retained losses cut to N193 billion from N458 billion
• Shareholders’ funds back to positive N42 billion
Recovery Drivers
FX Market Stabilization: Naira trading in predictable band
Strategic Pivots:
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Tariff increases (MTN: +120% data pricing)
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Local sourcing (Consumer firms: 68% input substitution)
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Debt restructuring (Nigerian Breweries: 40% finance cost reduction)
Investor Confidence:
• MTN hits N10.1 trillion valuation (N480/share)
• Nigerian Breweries joins NGX’s billion-dollar club
• Cadbury among July 2025’s top performers
Sector Spotlight
Breweries:
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International Breweries: First profit since Q3 2022
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Nigerian Breweries: N128 billion H1 profit vs N106 billion 2024 loss
Telecoms:
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MTN one quarter away from erasing all FX-induced losses
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Airtel Africa regains 2nd place in NGX rankings
Expert Insights
“This rebound proves Nigerian corporates can weather storms when policymakers provide stability,” said Temi Popoola, CEO of NGX.
“The worst is behind us, but companies must maintain hedging strategies,” cautioned Yvonne Mhango, Renaissance Capital’s Head of Equity Research.
What’s Next?
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CBN Watch: Sustained FX liquidity management
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Q3 Earnings: Analysts project 35% YoY profit growth
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Investor Playbook: Consumer stocks back on buy lists
