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.
Transnational Corporation of Nigeria Plc saw debt rise modestly by 5.63% YoY, reaching N110.35 billion compared to N104.47 billion a year earlier.
- Current debt: N48.41 billion
- Non-current debt: N61.93 billion
Transcorp Plc maintains a conservative and well-balanced leverage position. By the first half of 2025, the company held total borrowings of N110.35 billion and N49.03 billion in cash and cash equivalents, resulting in a net debt position of N61.32 billion, moderate in relation to its operational scale and diversified portfolio.
Its debt-to-equity ratio of 0.39x and debt-to-capital ratio of 0.28x indicate that just over a quarter of its total funding is sourced from borrowings, with the majority supported by shareholders’ equity. A debt ratio of 0.12 reinforces its limited reliance on debt, while an asset-to-equity ratio of 3.18x reflects a solid equity base supporting a moderate level of leverage.
The company’s debt-to-EBITDA ratio of 1.13x shows that Transcorp could comfortably repay its borrowings within slightly more than one year of operating earnings—a sign of efficient debt management. Its interest coverage ratio of 6.49x highlights strong earnings capacity relative to interest costs, indicating robust solvency and manageable financial risk.
Overall, Transcorp’s prudent use of leverage, supported by healthy cash flow generation and a balanced debt structure, provides both financial stability and flexibility. This conservative approach positions the company to pursue growth opportunities in its power and hospitality businesses without overburdening its balance sheet.
