The situation aggravated in the last two months as security concerns increased ahead of the country’s presidential elections on Feb. 25.
“Nigeria business environment remains very turbulent,” Hans Essaadi, chief executive officer of Nigerian Breweries Plc, said during an investor call on February 24. “The naira scarcity has aggravated things.”
The central bank’s attempt to replace old naira notes with new ones in Africa’s biggest economy has unexpectedly resulted in shortages in the last five months, stoking the ease of transacting in the cash-dominant economy. Inflation rose to 21.8% in January, the highest since September 2005.
The company’s profit before tax decreased 27% to 17.3 billion naira ($37.6 million) in 2022 even after revenue rose 26% to 550.6 billion naira, it said in a statement to the Nigerian Stock Exchange.
The maker of Star Lager, Legend Extra Stout and Maltina malt drinks sees demand for its products bouncing back after the votes and when the cash crunch normalizes.