Economy
Nestle Nigeria Posts N104bn Loss In 2023, Shareholders Funds Wiped Out
Nestle will also not be able to pay dividends based on the status of its shareholder’s funds.
Nestle Nigeria Plc has lost a staggering N104 billion before tax for the year ended 2023 compared to a profit before tax of N71 billion same period in 2022.
Nairametrics reported that this is according to the 2023 financial statement of the company published on the NGX on Wednesday, 28th February 2024.
The report added that the company reported a foreign exchange loss of N195 billion which was the major reason for the overall loss reported by the company.
The forex losses also resulted in a wipeout of the company’s shareholder funds which is now a negative N78 billion from N30.2 billion a year earlier.
This means the company’s liabilities now exceed its assets.
Nestle will also not be able to pay dividends based on the status of its shareholder’s funds.
Breakdown of the result:
Revenue for the year is N547.1 billion up from N446.8 billion reported a year earlier
Gross profit N217.7 billion versus N155.7 billion (2022), +39.8% YoY
Operating Profit N123.7 billion versus N87.4 billion (2022), +41.5% YoY
Net Finance Cost -N227.8 billion versus N16.3 billion (2022), +1,297%
Pre-tax loss of N104 billion versus Pre-tax profit of N71.1 billion (2022).
Loss after tax of N79.4 billion versus Profit after tax of N48.9 billion (2022).
Shareholder Funds -N78 billion versus last year’s N30.2 billion.
Interest-bearing loans of N402.2 billion versus N155.2 billion (2022)
According to records seen by Nairametrics, Nestle has drawn down about $362.25 million in foreign currency loans. The loans were obtained from its parent company Nestle SA.
The company acknowledged the effect of the losses on its going concern status stating as follows
“The Company made a net loss of N79 billion (2022: net profit N49 billion) for the year ended 31 December 2023 and as at that date, its total liabilities exceeded its total assets by N78 billion (2022: net asset N30 billion).”
“Despite the strong operational performance, the net profit is impacted by significant devaluation of the naira. The company believes that as macroeconomic situation stabilizes, the same would yield positive impact to the overall economy as well as company results.”
“The company has taken robust margin management and cost management initiatives to address significant forex volatility and cost inflation.”
“In 2023, the company’s revenue grew by 22.4%, an increase of ₦100billion and the operating profit increased by 41.2%.”
The negative shareholder funds incurred by Nestle will most likely lead to a fresh raise of capital. This is to ensure the going concern status of the company is guaranteed.
Nestle will most likely raise capital over N100 billion to ensure it continues to operate effectively.
Meanwhile, the net cash flow of the company remained positive at N49 billion despite the negative shareholder funds.
Nestle also stated that during the year it invested N61 billion in the expansion of its lines at the three factories located in Agbara, Sagamu, and Abaji.
They also invested in the enhancement of our distribution center (DC) operations at Sagamu, Ogun State.
Amidst the economic challenges it also launched 5 new products and ventured into affordable plant-based nutrition through NIDO Soya.
The Black Market Dollar to Naira Exchange Rate for 13th January 2026 Can Be Accessed Below.
NOTE: The exchange rate changes hourly. It depends on the volume of dollars available and the Demand.
The official naira black market exchange rate in Nigeria today, including the Black Market rates, Bureau De Change (BDC), and CBN rates.
Please note that the exchange rate is subject to hourly fluctuations influenced by the supply and demand of dollars in the market.
What’s the dollar to naira black market today, 13th January 2026?
The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players sell a dollar for ₦1485 and buy at ₦1479 on Tuesday 13th January, 2025, 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 ₦1485
Buying Rate ₦1479
Dollar to Naira CBN Rate Today
Dollar to Naira (USD to NGN) CBN Rate Today
Highest Rate ₦1430
Lowest Rate ₦1420
The Nigerian Naira began the second week of January 2026 with continued fluctuations as market participants adjusted to early-year liquidity shifts in both the official and informal currency markets.
Official Market Performance
In the Nigerian Foreign Exchange Market (NFEM), the local currency maintained a relatively stable position against the greenback. Trading data from the early hours of Monday indicates that the Naira opened at approximately 1,426.69 per dollar. As the session progressed, the rate saw minor appreciation, settling around 1,423.82 per dollar by midday.
This movement reflects a 0.20 percent gain for the Naira, following efforts by the Central Bank of Nigeria (CBN) to maintain transparency in price discovery and ensure a steady supply of foreign exchange to meet legitimate obligations. Market turnover remains a key indicator for observers, as the volume of dollars traded today will signal the level of corporate demand for the month of January.
Parallel Market Realities
In the parallel market, commonly referred to as the black market, the Naira traded at a slight premium compared to the official window. Reports from currency dealers in Lagos and Abuja show that the dollar is being exchanged at rates ranging between 1,475 and 1,490.
The gap between the official and parallel markets remains a point of interest for economic analysts. While the NFEM provides a benchmark for large-scale transactions, the parallel market continues to serve small-scale retail needs and individuals who may not have immediate access to official banking channels.
Market Outlook
The current stability observed today is attributed to a combination of factors, including steadying oil revenues and the central bank’s ongoing monetary tightening measures. However, pressure remains as importers begin to place orders for the first quarter of the year, potentially testing the resilience of the current exchange rate levels.
Observers are closely watching for further policy updates from the financial regulators, which could influence the direction of the currency as the business year gains full momentum.
As of January 6, 2026, nineteen Nigerian banks have met the Central Bank of Nigeria, CBN’s recapitalization requirements, ahead of the March 31 deadline.
This was disclosed in data released by The Cable Index on Tuesday.
The banks with international licenses that have complied include Access Bank, Fidelity Bank, First Bank, GTBank (GTCO), UBA, and Zenith Bank.
For banks with national and regional licenses, Citibank Nigeria, Ecobank Nigeria, Globus Bank, Stanbic IBTC, Sterling Bank, Wema Bank, PremiumTrust Bank, and Providus Bank have all met the CBN’s recapitalization benchmarks.
Additionally, two non-interest banks, Jaiz and Lotus and three merchant banks, including FSDH, Greenwich, and Nova, have achieved the required capital thresholds.
Despite this progress, approximately 14 banks have yet to meet the recapitalisation requirement.
CBN had announced fresh capital requirements in March 2024: N500 billion for international banks, N200 billion for national banks, N50 billion for merchant banks, and between N10 billion and N20 billion for non-interest banks.
2027: Tinubu Can Be Shoved Aside If INEC Is Closely Monitored – Dele Momodu
VP Shettima, Akpabio, Other Dignitaries Commemorate Armed Forces Remembrance
Armed Forces Remembrance Day: HoR minority caucus honour Nigeria’s fallen heroes, say “your sacrifices not forgotten”
Edo Killings: Jibrin Shares Details of His Discussion with Okpebholo
Jail break: One of Seven Escaped Ilesha Inmates re-arrested in Lagos
Police neutralise bandit, rescue 5 kidnapped victims in Katsina
-
News20 hours agoDelta: Governor Oborevwori approves minor cabinet reshuffle
-
News20 hours agoNJC Recommends Justice Oyewole For Appointment To Supreme Court
-
News19 hours agoJAC of SSANU, NASU lauds ASUU on signed agreement with FG
-
News20 hours agoTUC Backs JOHESU, Threatens Nationwide Strike Over Salary Stoppage
-
Sports20 hours agoAFCON 2025: Odion Ighalo names best defender in tournament
-
Sports20 hours agoArsenal secure 2-3 victory against hard fighting Chelsea
-
Metro19 hours agoTension in Delta community over suspected herdsmen attacks
-
News12 hours agoFG backpedals on tax laws guidelines, cites uncertainty