The three quoted cement manufacturers in the country, Dangote Cement, BUA Cement, and Lafarge Africa have bemoaned the scarcity FX, posting cumulative forex losses of N78.62 billion in the first nine months of 2022.
The Nigerian exchange rate market has been affected by high volatility caused by the crunch in FX supply amidst persistent high demand for the greenbacks.
The exchange rates between the naira and other major currencies have been on a downturn since the start of the year, especially the US dollar. At the official Investors and Exporters window, the exchange rate has depreciated from an average of N416/$1 recorded last year to about 446.67 a dollar.
Similarly, the naira has grown weaker in the black market, hitting a record low of N900/$ last month. As of Tuesday, 15th November 2022, the US dollar traded at an average of N800, representing a 29.4 percent depreciation compared to N595/$ recorded at the beginning of the year.
The exchange rate at the cryptocurrency P2P exchange market has also behaved in the same direction as the black market, currently trading at an average of N795/$1.
In contrast to the comparable period of 2021, where they recorded an aggregate loss of N9.84 billion, the FX losses of Dangote Cement, BUA Cement, and Lafarge Africa, increased by a whopping 699.1 per cent year-on-year.
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 per cent decline from N1.22 billion recorded in the first nine months of 2021 to N967.29 million in the period under review.
The Nigerian exchange rate market has been affected by high volatility caused by the crunch in FX supply amidst persistent high demand for the greenbacks.
