Major Cement companies in Nigeria are lamenting foreign exchange losses experienced in the sector by operators.
FX scarcity led the three quoted cement manufacturers in the country to record over N78 billion in foreign exchange losses between January and September 2022.
posted cumulative forex losses of N78.62 billion in the first nine months under review.
BUA Cement recorded the highest increase from N295 million to N5.26 billion. On the other hand, Dangote Cement recorded the biggest loss at N72.39 billion compared to N8.32 billion in the previous year.
Meanwhile, Lafarge Africa was able to print a lower FX loss compared to the previous year, recording a 21% decline from N1.22 billion recorded in the first nine months of 2021 to N967.29 million in the period under review.
BUA Cement noted that the huge increase in its FX loss is due to the wide margin between the auction bid and the I&E rates. As you may know, the CBN has been facing a dilemma in the form of a shortage in foreign inflows, with FPIs and FDIs at record lows.
During its nine-month result presentation, Dangote Cement explained that the increase in its exchange losses was due to the depreciation of the currencies in some Pan-African countries.
Nigeria’s foreign reserve has lost over $3.2 billion year-to-date to the constant intervention by the CBN in the Investors and Exporters window, which has kept the exchange rate in a managed floating state. The CBN said it supplied $7.74 billion to the I&E, SME, and Invisibles between January and June 2022.
