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.
Nigerian Breweries cut its debt aggressively, down 69.06% YoY to N182.03 billion in H1 2025 from N588.24 billion in H1 2024.
- Current debt: N152.03 billion
- Non-current debt: N30.00 billion
Nigerian Breweries Plc demonstrates a sound and balanced leverage position within its sector. As of H1 2025, the company carried total debt of N182.03 billion, offset by N77.70 billion in cash and cash equivalents, leaving a net debt position of N104.32 billion, a manageable level relative to its operating scale.
Its debt-to-equity ratio of 0.33x and debt-to-capital ratio of 0.25x show that only a quarter of its total funding is sourced from borrowings, with the majority supported by shareholders’ equity. The overall debt ratio of 0.16 reinforces its low reliance on debt, while an asset-to-equity ratio of 2.02x indicates that the company effectively uses moderate leverage to finance growth without overextending its balance sheet.
A debt-to-EBITDA ratio of 0.98x suggests that NB could repay its total borrowings in under a year of operating earnings, an efficient and comfortable coverage level. Its interest coverage ratio of 5.46x further signals that the company generates more than five times the earnings needed to service its interest obligations, reflecting solid cash flow and manageable financial risk.
Overall, Nigerian Breweries’ leverage profile reflects prudent capital management. Its conservative borrowing, backed by strong earnings, provides both financial stability and flexibility to navigate market challenges or invest strategically without creating excessive debt pressure.
