22 Firms on NGX Face Debt Exposure of N21.3trn

Twenty-two companies listed on the Nigerian Exchange Limited (NGX) had combined debt exposure of N21.3 trillion in the second quarter of 2026, reflecting reliance on borrowed funds to support operations.

An analysis of the companies’ financial positions showed that 11 of the firms had debt-to-equity ratios above 2.0, indicating that debt accounted for more than twice their shareholders’ equity.

FTN Cocoa Processors recorded the highest debt-to-equity ratio at 28.61, followed by SCOA Nigeria at 14.37 and United Capital at 6.52.

Other companies with ratios above 2.0 included Nestlé Nigeria, with 5.74; Fortis Global Insurance, 4.66; UACN, 4.10; Neimeth International Pharmaceuticals, 3.29; Mecure Industries, 3.00; MTN Nigeria, 2.98; VFD Group, 2.40; and Infinity Trust Mortgage Bank, 2.18.

The companies span financial services, consumer goods, telecommunications, manufacturing, energy, insurance and industrials.

They include VFD Group, United Capital, UACN, TotalEnergies Marketing Nigeria, Tantalizers, SCOA Nigeria, Nestlé Nigeria, Neimeth International Pharmaceuticals, MTN Nigeria and Mecure Industries.

Others are Infinity Trust Mortgage Bank, FTN Cocoa Processors, Ecobank Transnational Incorporated, Dangote Sugar, Conoil, C&I Leasing, BUA Cement, Aradel Holdings, AIICO Insurance, Access Holdings, Abbey Mortgage Bank and Fortis Global Insurance.

The level of indebtedness highlights the varying financing structures among companies listed on the NGX. While borrowing can provide funds for expansion and working capital, higher leverage can also increase exposure to interest costs and repayment obligations.

Companies with substantial debt may face greater pressure when borrowing costs rise or operating cash flows weaken. This can affect profitability and shareholder returns, depending on debt structure and cost.

The figures come amid efforts by Nigerian companies to access different sources of capital despite elevated financing costs.

Recent corporate financial reports have shown that bank loans and other direct borrowings remain important sources of funding for major listed companies, although bonds, commercial papers and other debt securities are also being used.

The latest figures overall underline the importance of debt management, strong cash flow and sustainable financing strategies for listed firms.

For investors, the debt position of individual companies remains an important factor to consider alongside profitability, cash reserves, earnings growth and the ability to service financial obligations.