Four pharmaceutical firms in Nigeria faced significant foreign exchange losses due to the weakening naira in 2023.
GlaxoSmithKline had the highest loss, deciding to end local manufacturing. Neimeth, Fidson, and May & Baker also suffered losses.
Analysts attributed the losses to import dependence for raw materials and currency depreciation.
The sudden transition to a floating exchange rate impacted the firms’ financial performance. However, with the naira stabilizing, companies may improve financial outcomes by hedging forex exposures.
