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PZ Cussons Pays 70% Premium for Dollars in Nigeria on Shortage

  • Most of the company's dollars purchased outside official rate
  • Situation in Nigeria `extremely fluid,' soap maker says

PZ Cussons Plc said it is paying as much as 70 percent more than the official rate for dollars in Nigeria as central-bank trading restrictions reduce availability of foreign currency in Africa’s biggest economy.

“Whilst the official naira exchange rate continues to be stable, a lack of availability at that rate is resulting in the majority of dollars being purchased at a premium of 50-70 percent,” the Manchester-based maker of Imperial Leather soap said in a trading update on Thursday. “The resultant cost impact is being managed through changes to relative pricing in an environment where trading conditions remain challenging. The situation in Nigeria remains extremely fluid.”