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.
BUA Cement’s total debt fell by 13.82% YoY, closing H1 2025 at N476.97 billion from N553.47 billion a year earlier.
- Current debt: N59.62 billion
- Non-current debt: N417.35 billion
BUA Cement Plc presents a balanced yet moderately leveraged capital structure. As of H1 2025, the company reported total borrowings of N476.97 billion, offset by N163.41 billion in cash and cash equivalents, resulting in net debt of N313.57 billion, a level consistent with its capital-intensive expansion strategy.
Its debt-to-equity ratio of 0.84x and debt-to-capital ratio of 0.46x show that nearly half of its total funding comes from borrowings, with the rest supported by shareholders’ equity. A debt ratio of 0.30 underscores its measured reliance on debt, while an asset-to-equity ratio of 2.83x indicates a healthy, controlled level of gearing appropriate for a capital-intensive industry like cement manufacturing.
The company’s debt-to-EBITDA ratio of 1.77x suggests it would take less than two years of operating earnings to repay its borrowings, demonstrating manageable repayment capacity. Its interest coverage ratio of 6.44x reflects strong earnings relative to interest costs, providing ample room to meet financing obligations even under shifting market conditions.
Overall, BUA Cement’s leverage profile highlights prudent borrowing practices aligned with long-term capacity expansion projects. The combination of moderate gearing, solid cash flow generation, and healthy interest coverage positions the company as financially stable and flexible, capable of funding growth while maintaining balance sheet discipline.
