Economy
Nestle Hit By Nigeria’s Forex Crisis, Records N176.9bn Loss
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Nestle Nigeria Plc has recorded another half-year loss after tax, following the foreign exchange reform introduced by the Central Bank of Nigeria.
Nestle posted a N176.9bn loss after tax which is a 254 per cent fall from the N49.98bn it lost in the same period last year.
This was disclosed in the company’s half-year financial statement.
The company’s challenges began last year when it declared a full-year loss of N79.5bn which is 280 per cent down compared to 2022 when it posted a profit after tax of N48.96bn.
Although the company’s sales revenue surged by 55 per cent to reach N406.9 in June 2024 as against the N261.8bn recorded in June 2023, Nestle said it has continued to struggle with government policies.
The company which is famous for its brands like Maggi, Milo, Golden Morn and Nescafé posted a gross profit of N63.07bn, a rise of four per cent from the N60.79bn recorded in June 2023.
But Nestle’s profit after tax for the six months ending June 2024 was negatively impacted by the depreciation of the naira which sold nearly N1,600 per dollar earlier in 2024.
“The devaluation of the Naira led to the revaluation of our foreign currency obligations and had an adverse impact on the profit after tax resulting in a net loss of -N176.9bn for the first half of the year,” the manufacturer said.
The company’s net finance cost rose form N129.9bn last year to N315.6bn in June 2024.
As a result of the loss, diluted earnings per share which measures per-share profitability fell from a loss of N63.06 per share last year to N223.19 loss per share.
Nestle’s total assets grew to N868.95bn but the company’s liabilities valued N973.8bn exceeded its assets.
The Chief Executive of Nestlé Nigeria Plc, Mr. Wassim Elhusseini said, “We are confident in our ability to navigate the current challenges to deliver long-term value to our shareholders while contributing positively to our communities.”
Data from the Nigerian Exchange Limited (NGX) showed that the company has a market capitalisation of N729.2bn while its shares closed at N920 on Monday, July 29,2024.
Telecommunication operators in Nigeria and other parts of Africa are expected to inject over $76 billion as capital expenditure (CapEx) into their various networks in five years.
GSMA said this projection is for between 2025 and 2030. It, however, said that for the investment to translate into improved coverage, quality and capacity, there is a need for an improved regulatory and cost environment.
According to the telecom body, markets that have reduced rights-of-way costs, enabled infrastructure sharing and provided regulatory predictability are seeing faster and broader capital deployment.
Infrastructure-sharing models in particular are emerging as a structural solution for extending coverage into areas where individual operator economics alone cannot justify the investment, it said.
MTN Nigeria’s quarterly CapEx this year has been extremely aggressive, starting with N390.3 billion in Q1 and reaching N620.5 billion by H1, while Airtel Africa invested $389 million in Q1 2026 alone, its highest first quarter rollout.
Both operators are front loading investments to expand 4G/5G coverage and fibre infrastructure.
For FY 2025, MTN Nigeria’s CapEx surged to N1 trillion, more than doubling from N443.5 billion in FY 2024. This was driven by aggressive investment in broadband coverage and spectrum leasing.
CapEx intensity stood at 19.3 per cent of revenue, reflecting heavy reinvestment into infrastructure.
Airtel Africa CapEx rose to $884 million in FY 2026, a 31.9 per cent increase year-on-year. The company rolled out over 3,250 new sites and expanded fibre by 3,200 km, with plans to accelerate spending to $1.1 billion in FY 2027.
Both operators are scaling aggressively to meet surging data demand and smartphone penetration.
MTN’s investment intensity is higher relative to revenue, while Airtel is focusing on pan-African expansion with Nigeria as a key growth driver.
For FY 2026, Airtel reported 47.5 per cent constant currency revenue growth in Nigeria, showing strong returns on its infrastructure push.
Airtel Africa is balancing pan African expansion with Nigeria as a key growth driver. Its CapEx is more diversified across regions but still heavily weighted toward network densification.
The National Insurance Commission, NAICOM, has revoked the operating licence of Nigeria Reinsurance Corporation over its failure to meet the statutory Minimum Capital Requirement, MCR, and appointed Dr. Muiz Banire, SAN, as Receiver/Provisional Liquidator to wind up the company’s affairs.
The appointment took effect on August 3, 2026, following the cancellation of the corporation’s certificate of registration by the insurance regulator.
In a public notice dated August 4, 2026, Banire said he was appointed by NAICOM, in exercise of its statutory powers, to take charge of the receivership and liquidation of Nigeria Reinsurance Corporation (RR-002).
According to the notice, the company’s licence was revoked after it failed to comply with the prescribed Minimum Capital Requirement applicable to its category of licence within the stipulated compliance period, in accordance with the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and other extant laws, regulations and guidelines.
Banire said his appointment empowers him to immediately trace, recover, secure and take possession of all assets belonging to the company, collate and settle its liabilities in accordance with the NIIRA 2025, liaise with NAICOM on matters relating to the liquidation, and submit periodic reports to the Commission.
He also directed banks, financial institutions, insurance policyholders and members of the public not to honour any instruction relating to the company except those issued by him or persons expressly authorised by him.
As part of the liquidation process, Banire announced that all bank accounts belonging to Nigeria Reinsurance Corporation had been frozen with immediate effect pending further directives from his office.
He warned that any transaction carried out without his authorisation would be at the risk of the parties involved.
“Members of the general public, banks and financial institutions in Nigeria are hereby informed that no financial transactions should be conducted pursuant to any instruction from anyone except those that I issue as the Receiver/Provisional Liquidator,” the notice stated.
According to him, only instructions bearing his official seal and stamp as a legal practitioner, or those issued by persons duly authorised by him, will be recognised throughout the liquidation process.
The regulatory action marks a significant enforcement measure by NAICOM and underscores the Commission’s resolve to ensure that insurance and reinsurance companies operating in Nigeria comply with statutory capital requirements designed to safeguard policyholders and strengthen the financial stability of the industry.
The liquidation process is expected to involve the recovery and realisation of the company’s assets, verification and settlement of valid claims and liabilities, and the orderly winding up of its affairs in accordance with the provisions of the law.
The public notice serves as formal notification to policyholders, creditors, banks and other stakeholders that all dealings concerning Nigeria Reinsurance Corporation must henceforth, be channelled through the Receiver/Provisional Liquidator until the liquidation process is concluded.
The Black Market Dollar-to-Naira Exchange Rate for 5th August 2026 Can Be Accessed Below.
NOTE: The exchange rate changes hourly. It depends on the volume of dollars available and the Demand. This means…you can buy or sell 1 dollar at a certain rate, and the price can change (high or low) within hours.
The official naira black market exchange rate in Nigeria today, including the Black Market rates, Bureau De Change (BDC), and CBN rates.
The exchange rate fluctuates hourly based on the supply and demand of dollars in the market.
What’s the dollar to naira black market today, 5th August 2026?
The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players sell a dollar for ₦1425 and buy at ₦1410 on Wednesday, 5th August, 2026, according to sources at Bureau De Change (BDC).
Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.
Dollar to Naira Black Market Rate Today
Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Selling Rate ₦1425
Buying Rate ₦1410
Dollar to Naira CBN Rate Today
Dollar to Naira (USD to NGN) CBN Rate Today
Highest Rate ₦1364
Lowest Rate ₦1361
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