Debt levels among Nigeria’s listed corporates showed mixed patterns in the first half of 2025.
Some companies aggressively expanded leverage to fund growth and operations, while others reduced borrowings in response to margin pressures and higher finance costs.
Nigeria’s corporate debt landscape in H1 2025 reveals a sharp divergence between aggressive borrowing by some firms and strategic deleveraging by others.
Total borrowings across key listed companies highlight both sectoral pressures and growth-driven capital deployment.
Oil and gas operators like Oando Plc and Seplat Energy Plc expanded their debt significantly to fund upstream projects and restructuring, while Dangote Cement maintained high leverage to support capacity expansion.
In contrast, consumer-facing giants like Nigerian Breweries and Nestlé Nigeria scaled back borrowings to preserve margins amid inflationary and foreign-exchange headwinds.
The debt ratios provide further insight: negative equity positions at Oando, Nestlé, and MTN Nigeria flag balance sheet risks despite strong or improving operating cash flows, while firms like BUA Cement, Transcorp, and Beta Plc display disciplined leverage and robust interest coverage.
This mix of aggressive borrowing, conservative funding strategies, and balance-sheet recalibration underscores the varied approaches Nigerian corporates are taking to navigate volatile macroeconomic conditions, high interest rates, and capital-intensive growth plans.
Below is a breakdown of each company’s debt position, growth trend, and structure.
Oando Plc tops the list as the most indebted company, with a total debt of N3.19 trillion in H1 2025 — almost doubling from N1.61 trillion a year earlier (+98.54% YoY).
- Current debt: N1.12 trillion
- Non-current debt: N2.08 trillion
Oando Plc presents a highly distressed leverage position. As of H1 2025, the company reported total borrowings of N3.19 trillion, offset by only N227.71 billion in cash and cash equivalents, resulting in a net debt position of N2.97 trillion, substantial relative to its operating scale.
Its debt-to-equity ratio of -10.44x and asset-to-equity ratio of -22.10x reflect a negative equity base, meaning the company’s liabilities significantly exceed shareholders’ funds. A debt-to-capital ratio of 1.11x confirms that its capital structure is almost entirely debt-driven, leaving little to no equity buffer. The debt ratio of 0.47 indicates that nearly half of its total assets are financed through borrowings.
The company’s debt-to-EBITDA ratio of -27.90x suggests that operating earnings are negative, making its borrowings unsustainable under current performance levels. Additionally, an interest coverage ratio of -1.41x shows that Oando is not generating enough earnings to cover its interest obligations, underscoring significant financial strain.
Overall, Oando’s leverage profile signals severe balance sheet pressure and elevated financial risk. While its heavy borrowings have supported capital-intensive upstream operations and restructuring efforts, the negative equity and inability to cover interest costs highlight the urgency for substantial recapitalization, asset optimization, or restructuring to restore financial stability.
