Nigeria’s largest listed companies owe N6.25 trillion as bank loans dominate borrowing

Nigeria's largest publicly listed firms continue to heavily rely on bank loans and direct borrowing, despite the rise of commercial papers and other debt instruments as alternative financing sources. According to a review by Nairametrics of 19 of the top companies in the NGX 30, these firms had a combined debt of N6.25 trillion as of June 2026.

About N4.64 trillion, or 74.2%, of this debt consisted of bank loans and direct borrowing facilities, while N1.61 trillion (25.8%) was sourced from bonds, commercial papers and other debt securities. The companies span key sectors such as consumer goods, industrials, oil and gas, power, telecommunications, agriculture and hospitality.

Notable examples include Dangote Cement, BUA Cement, MTN Nigeria, Seplat Energy, Aradel Holdings, BUA Foods, Nestlé Nigeria, Nigerian Breweries, Presco and Geregu Power. Despite the increased activity in Nigeria's corporate debt market and high bank lending rates, many of these firms still predominantly rely on traditional bank loans and direct borrowings.

The debt structure of these companies remains heavily skewed towards banks and direct lenders, with approximately N74 for every N100 owed originating from direct loans. For instance, Aradel Holdings and Seplat Energy, operating in the oil and gas sector, owe about N2.92 trillion, or 47% of the total debt, with most of their debt coming from bank loans.

BUA Cement, a major industrial firm, has N663.21 billion in debt, with over 93.5% financed through bank and direct loans. In contrast, some consumer goods companies like BUA Foods rely more on bonds and commercial papers for financing. Meanwhile, telecoms and power companies borrow for infrastructure and expansion, while hospitality firms finance new ventures.

The continued dependence on banks is notable given the elevated borrowing costs, with Nigeria's Monetary Policy Rate at 26.5% during the reviewed period, while actual lending rates to businesses exceeded 30%. Despite this, there has been a growing trend of Nigerian companies issuing commercial papers, up 40% from 2024. However, the structure of borrowing for these firms remains primarily driven by bank loans and direct borrowings.