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.
Seplat’s debt rose by 54.47% YoY, to N1.68 trillion in H1 2025 from N1.08 trillion in H1 2024.
- Current debt: N171.47 billion
- Non-current debt: N1.50 trillion
Seplat Energy Plc maintains a moderate and well-managed leverage position within the oil and gas sector. As of H1 2025, the company reported total borrowings of N1.68 trillion, supported by N641.28 billion in cash and cash equivalents, resulting in net debt of N1.03 trillion, a level consistent with funding capital-intensive exploration and production projects.
Its debt-to-equity ratio of 0.60x and debt-to-capital ratio of 0.38x show that just under 40% of its funding is sourced from borrowings, with the majority supported by shareholders’ equity. A debt ratio of 0.18 underscores its relatively low reliance on debt, while an asset-to-equity ratio of 3.38x indicates a healthy balance between equity and liabilities, typical for a capital-intensive upstream operator.
The company’s debt-to-EBITDA ratio of 1.45x suggests that Seplat could repay its borrowings in under a year and a half of operating earnings—comfortable for an exploration and production company with substantial cash flow generation. Its interest coverage ratio of 3.99x signals solid earnings capacity to service debt obligations, providing a buffer against market volatility or shifts in oil prices.
Overall, Seplat’s leverage profile reflects prudent financial management and disciplined use of borrowing to fund oilfield development and production activities. The combination of moderate gearing, healthy cash flows, and sound interest coverage positions Seplat as financially resilient and well placed to pursue growth while maintaining balance sheet stability.
