In the first three months of 2025, ten big Nigerian companies lost a total of ₦22.1 billion because of foreign exchange (FX) challenges. While this is much better than the huge ₦1.18 trillion loss from the same time last year, ₦22 billion is still a lot of money that could eat into profits.

If your business buys from abroad or deals with foreign currencies, these losses are a warning sign. Let’s break down what’s going on and how you can protect your business.

What’s Behind These FX Losses?

1. The Naira’s Ups and Downs
The Nigerian naira keeps changing value against the US dollar. Even small shifts in the exchange rate (like from ₦1,750 to ₦1,820 per dollar) add up when you’re paying for imports, debts, or raw materials in dollars.

Imagine you import machinery worth $1 million. If the naira weakens by just ₦50 per dollar, that means an extra ₦50 million out of your pocket — just like that.

2. Money In, Money Out — But in Different Currencies
Many companies sell products and get paid in naira but pay their suppliers or loans in dollars. When the naira weakens, your costs go up but your income stays the same — creating a gap that can cause big losses.

3. Not Enough Protection (Hedging)
Some companies avoid using tools that help lock in exchange rates because they think these tools are expensive or hard to get. This leaves them exposed to sudden changes in currency rates, like walking a tightrope without a safety net.

How Did Some Big Companies Do?

• Dangote Cement still faced ₦17.47 billion in FX losses, but that’s down 72% from last year. Thanks to this improvement, their profits grew strongly.
  
• MTN Nigeria cut its FX losses from ₦656 billion last year to just ₦5.5 billion now, turning big losses into solid profits.
  
• BUA Cement, Nigerian Breweries, and Nestlé also reduced their FX losses drastically, showing that smart FX management really pays off.
  

What Can Your Business Do?

1. Access Better Exchange Rates
Find a partner who gives you good rates so you don’t lose money unnecessarily when buying or selling foreign currency.

2. Stay Updated
Get simple, regular updates on currency trends to help you decide when to make payments or convert money.

3. Manage Multiple Currencies
If you deal with several countries, use services that let you hold, convert, and pay in many currencies easily, all in one place.

4. Get Expert Help
Have someone guide you through your FX challenges, an expert who understands your business needs and can tailor solutions for you.

Why This Matters

Even though FX losses dropped a lot in Q1 2025, the risks are still real. If you don’t plan ahead, your profits could shrink or even turn into losses next quarter.At Bluebulb, we help businesses like yours get the best exchange rates, manage currency risks, and make international payments simple and affordable.