Global oil prices plummeted to four-year lows Wednesday, with Brent crude crashing 3.4% to $60.69/barrel and WTI falling 4% to $57.22, as the U.S. imposed 104% tariffs on Chinese imports - a move that could cripple Nigeria's oil-dependent economy already reeling from production shortfalls and stalled reforms.

Trade War Triggers Market Collapse

The tariff escalation between the world's top two economies has sparked fears of a global recession, with Rystad Energy warning China's oil demand growth could drop by 100,000 barrels daily. The crisis compounds existing market pressures after OPEC+'s decision to increase output by 411,000 bpd in May.

Goldman Sachs now forecasts Brent could fall to $55 by 2026 - $20 below Nigeria's 2025 budget benchmark of $75/barrel. With current prices at $60, Africa's largest oil producer faces a catastrophic revenue shortfall.

Nigeria's Perfect Storm

The petroleum sector's collapse threatens to:

1. Derail the N55 trillion budget

- Already, Q1 2025 saw N5.4 trillion in unrealized oil revenue due to production deficits

2. Trigger massive borrowing

- The fiscal deficit could surpass N13 trillion as net oil revenues dwindle to $25/barrel after $40 production costs

3. Paralyze refineries

- Dangote Refinery may abandon U.S. crude imports due to tariffs, while domestic supply constraints worsen

4. Worsen debt crisis

- Crude-backed loan repayments face default risks with dwindling output

"At below $70 oil, we're in crisis territory," warned NES President Adeola Adenikinju. "The budget framework is becoming impractical."

Production Woes Compound Crisis

Despite briefly hitting 1.54 mbpd in January, Nigeria's output remains 25% below its 2.06 mbpd target. February saw production crash to 1.46 mbpd, resulting in:

- 15.5 million barrels lost in January ($1.13 billion revenue shortfall)

- 16.8 million barrels lost in February ($1.26 billion deficit)

- 15.5 million barrels lost in March ($1.03 billion gap)

Energy lawyer Ameh Madaki blasted Nigeria's "fraudulent budgeting process," noting: "We're borrowing to fund fiscal recklessness while citizens suffer."

No Easy Solutions**

With tax reforms stalled in the National Assembly and NNPC's new leadership needing months to address oil theft and production challenges, economists urge emergency measures:

- Immediate budget revisions to reflect $60-$65 oil reality

- Drastic cuts to wasteful expenditures

- Accelerated economic diversification

As Wood Mackenzie warns of prolonged $73 oil averages, Nigeria faces its worst fiscal crisis in a decade - caught between global trade wars and domestic production failures that could collapse its 2025 economic plans.

Eleven Peoples Democratic Party (PDP) governors have filed a lawsuit at the Supreme Court challenging President Bola Tinubu's declaration of a state of emergency in Rivers State and the suspension of Governor Siminalayi Fubara's administration.

The suit, marked SC/CV/329/2025 and filed on Tuesday, questions the constitutional validity of Tinubu's March 18 executive action, which removed Fubara, Deputy Governor Ngozi Odu, and the Rivers State House of Assembly, replacing them with retired Vice Admiral Ibok Ete Ibas as sole administrator for six months.

The governors—from Adamawa, Enugu, Osun, Oyo, Bauchi, Akwa Ibom, Plateau, Delta, Taraba, Zamfara, and Bayelsa states—are contesting whether the president has the power to dissolve a democratically elected state government under emergency provisions.

Constitutional Questions Raised

The plaintiffs, represented by their state attorneys general, posed three key questions for the Supreme Court's determination:

1. Whether the president can lawfully suspend a governor and deputy governor and replace them with an unelected administrator under emergency powers.

2. Whether the president can suspend a state House of Assembly under emergency rule.

3. Whether such actions violate constitutional federalism and the 1999 Constitution's separation of powers.

The governors argue that Tinubu's move sets a dangerous precedent that could threaten Nigeria's democratic structure, particularly given the National Assembly's endorsement of the suspension.

Legal and Political Implications

The case has significant ramifications for Nigeria's federal system, testing the limits of presidential emergency powers under Section 305 of the constitution. The PDP governors' challenge also reflects deepening political tensions, as Rivers State remains a flashpoint between the ruling All Progressives Congress (APC) and the opposition PDP.

The respondents—expected to include the Attorney General of the Federation and the federal government—have 14 days to respond to the summons.

This legal battle unfolds amid Nigeria's broader security crises, including insurgency in the Northeast and rampant banditry in the Northwest, raising concerns about executive overreach in governance and emergency measures.

Next Steps:

The Supreme Court's ruling could redefine the balance of power between federal and state governments, setting a critical precedent for Nigeria's democracy.

A fresh wave of violence has swept through Nigeria’s Northwest region, with bandits and armed groups killing at least 10 people and abducting over 120 in coordinated attacks across Katsina, Zamfara, Sokoto and Kebbi states within days—underscoring the worsening insecurity plaguing the country.

Katsina: Six Killed, 59 Abducted in Brutal Raids

In Katsina, bandits struck multiple communities, leaving six dead and 59 kidnapped. The latest attack occurred Sunday night in Layin Gara village (Funtua LGA), where two were killed and 16 abducted. A day earlier, over 100 gunmen stormed Maikuma village (Dandume LGA), killing four and seizing 43 residents.

“They moved house to house for hours before retreating into the forest with their victims,” a witness told Daily Trust. Dandume LGA Chairman Basiru Musa confirmed the assault, lamenting that security forces were restricted from pursuing the bandits beyond operational boundaries.

Zamfara: Bandits Kill 2, Abduct 60 in Retaliation for Kingpins’ Deaths

Zamfara faced even deadlier reprisal attacks as bandits loyal to warlord Adamu Aliero raided Tsafe LGA communities, killing two and abducting over 60. The violence followed the killing of Aliero’s brother, Kachalla Yellow (aka Dan Isuhu), in a security operation two weeks prior.

On Sunday, gunmen attacked Gidan Arne village, shooting three residents—two died instantly—and abducting 40 women. Simultaneously, Keta village was raided, leaving one dead, 11 vehicles torched, and shops looted. Earlier assaults in Yan Doton Daji and Unguwan Chida saw 21 more kidnapped.

“These attacks are revenge for the bandit leaders killed by security forces,” a community leader revealed. Despite military operations, bandits continue exploiting Zamfara’s vast forests, imposing illegal levies on farmers and executing deadly ambushes—including the October 2024 killing of nine state guards.

Sokoto & Kebbi: Fishermen Murdered, Student Kidnapped

In Sokoto’s Tangaza LGA, the Lakurawa militia killed two fishermen and a farmer in Sanyinna village Tuesday, just a day after nearby Sutti and Takkau were attacked. Meanwhile, in Kebbi, gunmen stormed a university hostel in Birnin Kebbi, abducting 23-year-old student Augustine Madubiya and killing a herder who tried to intervene.

Authorities’ Response

While police in Sokoto and Kebbi vowed to track the perpetrators, Zamfara’s officials remained silent. Katsina’s officials urged stronger federal intervention, with Dandume’s chairman warning that bandits operate “without fear.”

A Region Under Siege

The relentless attacks highlight the Northwest’s descent into lawlessness, with bandits and militias exploiting weak security presence, vast forests, and communal vulnerabilities. Despite government assurances, residents face daily terror—raising urgent questions about Nigeria’s capacity to curb the escalating crisis.

—Reports compiled from Daily Trust and eyewitness accounts.

Borno State Governor Babagana Zulum has raised alarm over renewed Boko Haram attacks across the state, warning that recent military setbacks suggest Nigeria is "losing ground" against insurgents - even as bandit violence escalates catastrophically in the Northwest.

Zulum's grim assessment came during an emergency security meeting on Tuesday, just days after bandits killed 10 people and abducted over 120 across Katsina, Zamfara and Sokoto states. The parallel crises highlight Nigeria's deteriorating security landscape, with both the Northeast and Northwest now facing resurgent threats.

Military Bases Overrun, Civilians Targeted

The governor cited recent attacks in Wajirko, Sabon Gari, Wulgo and Izge where insurgents not only killed civilians and security personnel but successfully dislodged military formations - a development he called "a significant setback."

"This daily pattern of attacks without effective confrontation signals Borno is losing the gains made in recent years," Zulum stated, referencing the relative peace achieved since 2021. His warning echoes concerns in Northwest states where bandits now operate with similar impunity, overrunning communities and kidnapping victims by the dozens as seen in last weekend's Katsina and Zamfara raids.

Call for Tech-Driven Warfare

While commending federal support, Zulum urged deployment of advanced surveillance and weaponry along Borno's porous borders with Chad, Niger and Cameroon - a technological upgrade Northwest governors have similarly demanded to combat bandits exploiting forest hideouts.

The appeal comes as both regions face asymmetrical threats: Borno's jihadist insurgency and the Northwest's criminal banditry, now adopting terrorist tactics like mass abductions and reprisal killings. In Zamfara, bandits recently murdered 2 and kidnapped 60 to avenge their leaders' deaths - mirroring Boko Haram's retaliatory patterns.

National Security at Crossroads

The simultaneous crises present President Bola Tinubu with a multi-front security challenge. While Northwest governors grapple with bandit warlords like Zamfara's Adamu Aliero, Zulum's disclosure of reemerging Boko Haram strength suggests Nigeria's security apparatus is being stretched dangerously thin.

As the military scrambles to respond to Tuesday's student abduction in Kebbi and Sokoto's militia attacks, Zulum's warning serves as a stark reminder: without urgent intervention, both regions risk sliding back into the worst violence of the past decade.

—With additional reporting from Northwest Nigeria where over 130 civilians have been killed or abducted in 72 hours.

Ali Ndume, senator representing Borno South, has criticized President Bola Tinubu for allegedly violating constitutional provisions on federal character in his political appointments, sparking a sharp rebuke from the Presidency, which labeled him a "rabble rouser" promoting divisive narratives.

Speaking on Arise TV, Ndume argued that Tinubu’s appointments disproportionately favour the South-West, contravening Section 14(3) of the 1999 Constitution, which mandates equitable representation.

"The figures are there. It’s not that I’m just making accusations, but the constitution clearly states that political appointments should reflect federal character, and that is not the case here," Ndume said. He clarified that his remarks were not a personal attack but a constitutional duty as a lawmaker.

"I have the right to criticize the government—that’s why I’m in the National Assembly. We are supposed to oversight the president and point out irregularities," he stated, adding that he expected backlash from Tinubu’s supporters but would not be silenced.

However, the Presidency swiftly dismissed Ndume’s claims as hypocritical. Bayo Onanuga, Special Adviser to the President on Information and Strategy, accused the senator of "selective perception" and ignoring key appointments from his own region.

"President Tinubu’s appointments are based on merit, integrity, and geographical spread, not tribal arithmetic," Onanuga stated on X. He noted that two prominent NNPC appointees hail from Ndume’s senatorial district, questioning his narrative of exclusion.

Onanuga further criticized Ndume for "headline-chasing" rather than offering constructive criticism, reaffirming Tinubu’s commitment to inclusive governance. "The president aims to harness Nigeria’s diversity to build a prosperous nation," he added.

The exchange highlights growing tensions over Tinubu’s appointments, with critics accusing him of regional bias while the administration defends its choices as merit-based and balanced.

Natasha Akpoti-Uduaghan, senator representing Kogi Central, has filed a N5 billion defamation lawsuit against Onyekachi Nwaebonyi of Ebonyi North Central Senatorial District, who currently serves as Deputy Chief Whip of the Senate.

The legal action follows statements made by Nwaebonyi during a March 6, 2025 interview on Channels TV's "Sunrise Daily" program. According to court documents filed by Akpoti-Uduaghan's legal team led by M.J. Numa, Nwaebonyi allegedly made several defamatory claims, including that Akpoti-Uduaghan "had six children for different men" and that her husband, Emmanuel Uduaghan, "married her under duress."

The lawsuit (CV/1259/25) contends that Nwaebonyi also referred to Akpoti-Uduaghan as a "gold digger," "habitual liar," and "habitual blackmailer" during the nationally televised broadcast, which was subsequently shared across multiple online and social media platforms.

Akpoti-Uduaghan, who is currently serving a six-month suspension from the Senate, argues these statements were deliberately false and malicious, intended to damage her reputation and "justify her illegal suspension by the Senate." She further claims that Nwaebonyi, who sits on the Senate Committee on Ethics, Code of Conduct and Public Petitions, made these "false and reckless statements to prejudice the mind of the public against the claimant's petition before the Senate."

In her filing, Akpoti-Uduaghan describes herself as "an inspiration to women in politics" who is "not spoiling the chance of women in politics as falsely alleged, rather she is inspiring women to be bold in their quest for politics and good governance."

The suspended senator is seeking a permanent injunction against further defamatory statements, a formal retraction on the same platforms where the comments were made, public apologies in at least two national newspapers, and N5 billion in damages. She has also requested 10% annual interest on any judgment amount from the date of delivery until full payment.

No hearing date has been scheduled yet.​​​​​​​​​​​​​​​​

US families accuse Palestinian-American billionaire of facilitating Hamas attacks

American families of victims of the October 7, 2023, attacks on Israel filed a lawsuit on Monday against a prominent Palestinian-American businessman, Bashar Masri, charging that he provided assistance in constructing infrastructure that allowed Hamas militants to carry out their cross-border rampage.

The lawsuit, filed in the U.S. District Court for Washington, D.C., is thought to be the first case of a U.S. citizen being accused of providing major support for the attacks that triggered a wider Middle East conflict and upended the region.

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Masri's office called the lawsuit "baseless."

According to a statement announcing the lawsuit, properties Masri owned, developed and controlled, including two luxury hotels and the leading industrial zone in Gaza – the Gaza Industrial Estate - "concealed tunnels underneath them, and had tunnel entrances accessible from within the properties, which Hamas used in terrorist operations before, on and after October 7th."

"Defendants facilitated the construction and concealment of those tunnels and even built above-ground solar panel installations that they then used to supply Hamas with electricity to the tunnels," it said.

The October 7 attacks killed some 1,200 Israelis, including more than 40 Americans, and prompted Israeli retaliation against Gaza that has since killed more than 50,000 Palestinians.

The lawsuit, which targets Masri and his companies, was filed on behalf of nearly 200 American plaintiffs, including survivors and relatives of victims.

"Our goal is to expose those who have aided and abetted Hamas and to try and bring accountability to individuals and companies that have presented a legitimate and moderate image to the Western world but have actively and knowingly helped Hamas," Lee Wolosky of the Willkie Farr & Gallagher LLP law firm, lead attorney representing the plaintiffs, said in the statement.

It said GIE was originally established with the help of U.S. taxpayer funding via the U.S. Agency for International Development to promote economic growth in the region.

It said of that "as a result of defendants’ deception," Hamas' tunnel network was built with the help of infrastructure and energy projects financed by international institutions, including the World Bank's International Finance Corporation.

Masri's office called the allegations against him and his businesses false and said he would seek their dismissal in court. It said Masri had been involved in development and humanitarian work for the past decades and "unequivocally opposes violence of any kind."

"Neither he nor those entities have ever engaged in unlawful activity or provided support for violence and militancy," it said in a statement.

Doing any big projects in Gaza prior to the war would have required tacit approval by, and some level of cooperation with, the Hamas authorities. The group built its extensive tunnel network across practically the entire territory, including under private homes and businesses.

A March 10 article in the Jerusalem Post cited unnamed diplomatic sources as saying that Masri had served as a close adviser to Adam Boehler, U.S. President Donald Trump’s envoy seeking release of hostages held in Gaza, and had flown on Boehler’s private jet as he shuttled across the region.

It called Masri "a seasoned entrepreneur" who "shares a business-minded approach with Trump, making him a natural fit in the administration’s economic vision for the region."

The State Department and White House did not immediately respond to requests for comment when asked about the newspaper report.

In a Reuters interview in October 2020, when he was 59, Masri spoke in favor of Gulf Arab ties with Israel, condemned by Palestinian leaders, saying they could be an opportunity to apply fresh pressure to halt Jewish settlement in occupied land.

When speaking to Reuters in 2020, Masri said Palestinians must not give up hope. "Our enemies want us to give up hope. If we give up hope, they have exactly what they want, and there will be no Palestine, and no Palestinian people," he said.

Reuters

WESTERN PERSPECTIVE

Chinese nationals captured fighting for Russia in Ukraine, Zelenskiy says

President Volodymyr Zelenskiy said on Tuesday that Ukrainian forces had captured two Chinese men fighting for Russia in eastern Ukraine, potentially threatening a fragile peace effort in the three-year-old war.

Beijing is a close diplomatic ally of Moscow but is not publicly known to have directly aided in the Kremlin's full-scale invasion, which U.S. President Donald Trump is seeking to swiftly end.

Writing on X, where he posted a video of one of the alleged men, Zelenskiy said Kyiv has "information suggesting that there are many more Chinese citizens" fighting. He did not say whether Ukraine believed the men were acting on Beijing's orders.

"Russia's involvement of China, along with other countries, whether directly or indirectly, in this war in Europe is a clear signal that Putin intends to do anything but end the war," he wrote, referring to Russian President Vladimir Putin.

The Chinese Foreign Ministry did not immediately respond to a Reuters request for comment on what would be the first publicly announced case of Chinese nationals captured fighting for Russia in Ukraine. Reuters could not independently verify the claims.

Writing on social media, Andriy Kovalenko, a member of Ukraine's National Security and Defence Council, called the captured fighters mercenaries but offered no other details.

Russia has used Iranian drones as well as North Korean missiles and artillery shells since its February 2022 invasion.

Kyiv also says Pyongyang's troops have been deployed to fight Ukrainian forces in parts of Russia's western Kursk region, where Ukraine staged a lightning incursion last summer.

"But there is a difference: the North Koreans were fighting on the Kursk front against us," Zelenskiy said in a joint briefing in Kyiv on Tuesday with Belgian Prime Minister Bart De Wever. "The Chinese are fighting on the territory of Ukraine."

Russia has not yet publicly commented on Zelenskiy's claim about Chinese fighters, nor has it explicitly confirmed using North Korean troops in its Kursk region.

U.S. State Department spokesperson Tammy Bruce said the reports of Chinese nationals captured in Ukraine were disturbing but did not say whether Washington has verified the claim.

China's supply of dual-use items to Russia makes it a major enabler of Russia's war effort, Bruce told reporters, adding that cooperation between Moscow and Beijing contributes to global instability.

TOUGHER STANCE

Zelenskiy, who said the men were carrying documents confirming their identities, told reporters he hoped their capture would prompt the U.S. to take a tougher stance on Russia during a peace process to end the fighting.

U.S. and Russian officials have in recent weeks engaged in bilateral talks, drawing criticism from Ukraine which is suspicious of the Trump administration's conciliatory stance toward the Kremlin.

"I think the U.S. needs to pay more attention to what's happening today," Zelenskiy said. He added that Ukrainian forces had engaged six Chinese fighters in total.

"We really hope that after this situation, Americans will talk more with Ukrainians, and then with Russians."

In a separate statement, Ukrainian Foreign Minister Andrii Sybiha said Kyiv had summoned China's charge d'affaires in Ukraine "to condemn this fact and demand an explanation".

China, which declared a no-limits strategic partnership with Russia days before Moscow's invasion, has said it is ready to play a role in settling the war in Ukraine.

RUSSIAN PERSPECTIVE

Russia to step up number of ground-based robots in army — top defense official

The Russian Armed Forces will receive significantly more ground-based robots this year, Defense Minister Andrey Belousov said.

On April 8, the Russian Defense Ministry held a scientific and technical conference on the issues of use and development of ground-based robots taking into account the experience of the special military operation.

Belousov pointed out that last year, the defense industry and volunteer organizations delivered several hundred ground-based robots to the Russian military. "This year we plan to deliver many more," he said.

Reuters/Tass

Neil Patel

Seldom does success come easily in business. Not to be pessimistic, but most entrepreneurs who make it have inevitably faced a myriad of challenges along the way. That's just the way it is.

And what has stunted their growth and success along the way hasn't necessarily been major obstacles or turbulent storms. It's been the distractions they've allowed to invade their lives. These are often subtle distractions, so entrepreneurs may not even know there's a problem until one day they wake up to see that their efforts have been derailed.

The key to moving forward is being able to spot some of the most common distractions and eliminate them before they infiltrate any further. Here are some that I've personally experienced.

1. Listening to too many people

I've seen it time and time again. An otherwise intelligent, ambitious and driven entrepreneur with a seemingly infinite number of great ideas allows his or her vision to become clouded by listening to everyone else's opinion.

Don't get me wrong. It's important to get feedback. Connecting with the right mentors can be integral for finding success.

However, listening to too many people is a sure-fire way to become overwhelmed. It's often the catalyst for self-doubt. When you've got too many voices in your head telling you what's right and what's wrong, your own inner beacon of light can't properly shine.

All of a sudden you're second-guessing yourself, and your decision-making becomes hazy. That's why I recommend getting opinions and feedback from just a few select people whom you trust and know have your best interests in mind.

2. Mistaking busyness for productivity

Being productive and simply being busy are two very different things. Unfortunately, we humans are hard-wired to believe that as long we stay busy, we're being productive.

Research on this matter from the University of Chicago found that the "belief that being busy is a sign of success and hard work is so prevalent that we actually fear inactivity." The researchers actually invented the term "idleness aversion" to describe how people are drawn to being busy regardless of how this busyness can impact their productivity.

I know that I've fallen into this trap myself. Sometimes, I'll think that I'm accomplishing something great just because I've been working tirelessly for hours on end. But in hindsight, my productivity was only minimal.

Breaking this maladaptive mental habit is essential to the long-term health of your business.

3. Procrastinating on critical tasks

"I'll procrastinate tomorrow" is a humorous line that captures the essence of prolonging important tasks just because they don't seem very appealing at the moment. Procrastination, however, often creates a vicious cycle where it gets easier and easier to put off what you should being doing right now.

Without keeping this problem in check, you may develop a habit of laziness, which can doom your overall success.

One technique that I've found useful is to prioritize my tasks in order of importance and difficulty. I then tackle the biggest and baddest tasks early in the day when I have the most energy, and save the tasks that are lower on the totem pole for later.

Another reason why I believe that many people procrastinate is simply because they're overwhelmed or intimidated by certain tasks. However, this can usually be remedied by breaking larger tasks down into smaller, more manageable steps.

This approach might be compared to scoring a touchdown in football. If you simply focus on getting first downs, you'll eventually make it to the end zone.

4. Allowing politics to override logical decision-making

Allowing workplace politics to remain unchecked and get out of control almost guarantees a negative impact on a business' success.

This distraction is usually due to team members jockeying for power or one person's ego taking precedence over others', rather than keeping the focus on the common good. When this happens, things can quickly take a turn for the worse, and any semblance of professionalism can go out the window.

Unless you're a solopreneur, with complete control over your company, you're going to encounter different ideas within a company. The key to maintaining logical decision-making is to keep everyone's efforts coordinated and "focused on the ultimate good of the enterprise."

5. Saying "yes" to everything

Unless you're a real-life version of Jim Carrey's character in Yes Man,saying yes to every proposition or crazy idea is likely to get you into trouble. The bottom line in business is that you can't please everyone. Not every offer is going to be legitimately beneficial.

Getting into in the habit of excessive people-pleasing, in fact, can be a major distraction and can counteract much of the success you've already earned. Remember that you only have a finite amount of time and resources and that focusing on projects and relationships that are going to bring about tangible results is what's really important.

This should make it easier to say no from time to time and to ensure that you don't wind up in over your head or agreeing to something you'll later regret.

Conclusion

By recognizing some of the biggest distractions that plague entrepreneurs, you're less likely to fall victim to them. Instead, keep your eyes on prize and accomplish more with less wasted motion.

Entrepreneur

Some of Nigeria’s leading companies incurred a combined forex loss of N2.17 trillion in the financial year 2024, according to data collated by Nairametrics from published financial statements.

The sheer size and magnitude of the losses were so significant that they negatively impacted the bottom line for some firms.

These staggering losses were largely triggered by the devaluation of the naira, following the Tinubu administration’s foreign exchange unification policy launched in June 2023.

In context, the exchange rate opened 2023 at N461.5/$1, closed the year at N907.11/$1, and ended 2024 at N1,535/$1. This sharp devaluation led to massive FX losses for Nigerian businesses with dollar-denominated obligations, as these liabilities were revalued in naira terms.

The losses spanned multiple sectors, including consumer goods, telecommunications, and cement:

• Affected companies include MTN Nigeria, Dangote Cement, Nigerian Breweries, and BUA Foods—all giants in their industries.
• Foreign-owned multinationals such as Nestlé, Cadbury, and Lafarge Africawere also hit hard.
• Aradel Holdings, a key indigenous player in energy, also featured prominently.

Despite a 64.38% increase in combined revenue to N13.452 trillion, these firms recorded a 6.03% decline in aggregate pre-tax profits to N332.227 billion, due largely to FX pressures.

MTN Nigeria topped the list with a combined foreign exchange loss of N925.361 billion, representing 42.65% of the total FX losses recorded by the companies under review. This figure marks a 24.98% increase compared to 2023.

According to the company’s financial report:

• Realized FX losses accounted for 60.73% of the total, amounting to approximately N562 billion.
• The remaining 39.27% (N363 billion) was unrealized, resulting from the revaluation of foreign-denominated obligations.
• Both components were charged to the income statement, pushing MTN Nigeria’s pre-tax loss up by 209% to N550.326 billion in 2024.

Nestlé Nigeria also joined the list of companies heavily impacted by foreign exchange volatility, recording a 49% year-on-year increase in FX losses, which rose to N290.700 billion.

This figure accounts for 13.40% of the combined forex losses incurred by the ten companies under review.

Breaking it down: 

• Realized exchange loss: N57.598 billion 
• Unrealized FX loss: N233.102 billion 

As a result of these heavy forex losses, Nestlé Nigeria’s pre-tax loss surged by 113%, reaching N221.589 billion during the period.

The Dangote Group 

The Dangote Group’s cement and sugar operations incurred a combined N458.225 billion in FX losses:

• Dangote Cement: N249.322 billion 
• Dangote Sugar Refinery: N208.903 billion 

Dangote Cement, in its 2024 financial results, attributed the foreign exchange loss to widespread currency devaluation across its African markets. “In 2024, currency devaluation emerged as a significant factor shaping the economic landscape across Africa, with most currencies in our operational countries experiencing depreciation,” the company stated.

The high FX burden significantly impacted on the group’s overall profitability, despite posting strong top-line figures.

While Dangote Cement delivered a 34% growth in pre-tax profit toN732.537 billion, Dangote Sugar’s performance deteriorated sharply, with pre-tax losses worsening by 149% to N270.894 billion.

BUA Group: 

The BUA Group, comprising BUA Cement and BUA Foods, recorded a total FX loss of N265.399 billion, weakening the group’s bottom-line outlook:

• BUA Foods: N173.293 billion, up 112% YoY
• BUA Cement: N92.105 billion, up 32% YoY

Despite the FX loss, BUA Foods recorded one of the strongest profit margins among the companies under review, at 17%, second only to Aradel’s impressive 44%.

Nigerian Breweries: 

Nigerian Breweries reported foreign exchange losses of N157.597 billionin 2024, marking a 2.78% year-on-year increase.

• While the growth is modest, the absolute figure remains a significant drag on the company’s financials. The losses were largely attributed to the devaluation of the Naira.
• To mitigate future currency risks, the company implemented several strategies, including utilizing proceeds from its Rights Issue to reduce FX exposure.
• As a result of these efforts, operating profit surged by 145%, while net finance costs dropped by 75%, leading to a return to profitability in Q4 2024 the first time in two years.

Nevertheless, the company still recorded a pre-tax loss of N182.419 billion, representing a 26.08% increase year-on-year, highlighting that currency pressure continues to weigh heavily on overall performance.

Cadbury Nigeria: 

Cadbury Nigeria saw some relief in 2024, recording a total FX loss of N28.311 billion; a 24.6% decline from the N37.558 billion posted in 2023.

The company’s realized FX losses dropped to N26.051 billion from N30.072 billion, while unrealized losses fell by nearly 70% to N2.261 billion from N7.486 billion.

This reduction in FX losses helped cushion the company’s earnings, with pre-tax loss declining by 12% to N28.326 billion. 

WAPCO: 

WAPCO experienced a significant surge in realized FX losses, which rose to N24.871 billion in 2024, up from N6.134 billion in 2023.

However, the company recorded an unrealized FX gain of N600.174 million, a notable reversal from the N14.911 billion unrealized loss reported in the previous year.

Despite this partial offset, WAPCO’s net FX loss widened to N24.271 billion, reflecting a 15.3% increase from the N21.045 billion recorded in 2023.

Aradel Holdings: 

Aradel Holdings, on the other hand, posted a net FX loss of N19.616 billionin 2024, composed of a realized FX loss of N28.966 billion, partially offset by a realized FX gain of N9.350 billion.

This marked a 133% increase compared to the N8.386 billion FX loss recorded in 2023; the highest year-on-year growth in FX-related losses among the companies reviewed.

• Overall, the N2.17 trillion forex losses incurred by Nigeria’s top companies in 2024 highlight the severe impact of naira devaluation following the unification policy.
• While companies like MTN, Nestlé, and Dangote Cement saw revenue growth, the currency losses significantly affected their bottom lines, leading to substantial pre-tax losses.

Despite efforts to reduce FX exposure, the volatile naira continues to challenge profitability.

The outlook still depends on currency stability and broader economic conditions.

Nairametrics