Dangote’s cement, sugar companies lose N184.80bn to naira devaluation

Over N184.80 billion was lost to naira devaluation by the cement and sugar companies largely owned by Africa’s richest man, Aliko Dangote.

The loss was recorded in the second quarter of 2023, Ripples Nigeria gathered, after the Central Bank of Nigeria (CBN) devalued the naira by N192.37 or 40.78 per cent on June 14, 2023.

Recall that the naira to dollar rate was N471.67/$1 on June 13, but following the devaluation, the exchange rate moved to N664.04/$1 on June 14.

Although the dollar rate closed the second quarter at N756/$1, according to reports by both Dangote Sugar and Dangote Cement in their Q2 financial statements.

Dangote Cement recorded a net exchange loss of N116.1 billion due to the naira devaluation and Dangote Sugar saw a loss of N68.7 billion.

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“Net exchange loss on foreign denominated transactions is due to material devaluation of the Nigerian Naira in June 2023.

“The Naira moved from ₦465/$ at end of May 2023 to close at ₦756/$ in June 2023 giving rise to a net exchange loss of ₦116.1 billion from third party loans and payables in the Nigerian entities,” Dangote Cement disclosed.

Also, Dangote Sugar reported that: “Monetary Assets and liabilities for the Nigeria operations were revalued at this rate resulting in a revaluation loss of N68.7billion for the Company mainly driven by Letters of Credit and foreign vendor balances.

“This exchange loss has been taken in the month of June. None of the new or revised standards effective 1 January 2023 had a material effect on the Financial statements.”

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