Fall & Fall of Naira?

The Naira-Dollar Affair: To Hit $1M In 2020, Nigerians Must Earn ₦450M; 3X The 2015 Sum


September 23, 2020

If a firm runs two branches of the same business in South Africa and Nigeria -- and both businesses are hitting identical figures as revenue in the respective local currencies -- the South African entity would, at the moment, be earning roughly USD 26 Mn for every USD 1 Mn the Nigerian branch manages to muster.

If a foreign multinational saw its profit in Nigeria move from NGN 364 Mn last year to NGN 450 Mn this year, that firm hasn’t seen any profit growth.

To put it simply, businesses in today’s Nigeria (with earnings in naira, obviously) have to earn as much as NGN 450 Mn to be able to declare revenue of USD 1 Mn.

As of five years ago, they just had to make NGN 150 Mn to hit that mark. Clearly, businesses in the country now have to do thrice as much to achieve the same result...

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