DEPOSIT money banks helped Unilever Nigeria Plc to beat the foreign exchange (FX) crunch in Nigeria, particularly in 2024. According to the 2025 financial statement seen by Economy Post, the company entered into trade financing arrangements with some local banks, which enabled it to avoid making immediate FX payments to foreign vendors.

Hence, the banks agreed to pay foreign vendors in respect of invoices owed by the company. The financial institutions in turn received settlement from the company at a later date. The principal purpose of the arrangement, the firm said, was to facilitate efficient payment processing in view of the challenges experienced with sourcing foreign currency in the Nigerian market at that time.

“The arrangement enabled the company to settle its foreign obligations in a timely manner to facilitate receipt of key input materials required in the production of finished goods,” Unilever Nigeria said.

“In 2025, the company has paid down these facilities due to the relative stability and improved availability of foreign currency.”

Nigeria faced FX scarcity from late 2024 to 2024. Within this period, factories shut down because they could not source FX to import their inputs. From travellers to importers, everyone turned to the parallel market for dollars. As a result, the market became became severely abused by traders, who profitted from the crunch.

Under the Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele, FX was rationed to various sectors, which led to inefficiencies and worsening economic indices.

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Led by Muhammadu Buhari, the nation’s FX was controlled by the CBN, rather than market forces. With the Bola Tinubu administration coming on board in May 2023, the FX and petrol markets were liberalised, leading to higher investor confidence and availability of the greenback. Under Yemi Cardoso, the FX market has been sanitised, even though the nation’s currency, the naira, has weakened by over 50 percent.

Unilever’s financials

Unilever released an encouraging financial report for the full-year 2025. Its revenue climbed 44 percent to N214.668 billion from N149.522 billion in 2024. The FMCG more than doubled its profit to N30.739 billion, from N15.143 billion in the corresponding period of 2024.

Unilver has leveraged partnerships for growth. After exiting its tea business in October 2021, it entered into a Transitional Service Agreement with the new owner, Ekaterra Plant based Ltd, now Lipton Teas and infusions Plant Based Limited, until June 2023. Effective July 1, 2023, Unilever Nigeria entered into a Manufacturing Services Agreement for production of Tea with Lipton Teas and Infusions Plant Based Ltd in exchange for a fee. It earned N43.761 million from the arrangement in 2025, but it was a 34 percent decline from N66.16 million reported in 2024.

Unilever Nigeria’s Managing Director, Mr Tobi Adeniyi, attributed the growth in earnings to the firm’s continued momentum from its route‑to‑market expansion, well optimised operational structure, and the robust demand across its products line.

He said with a proud heritage of more than 100 years of manufacturing in Nigeria, every product and every experience of the company :reflects our legacy of innovation and our unwavering commitment to quality. Through our trusted brands, we continue to Brighten Everyday Life for All.”