An evaluation of 32 NGX-listed companies exhibits that whereas a number of companies lowered borrowings in the first 9 months of 2026, others proceed to face strain from excessive financing prices, weak fairness positions, and restricted money protection.
The 31 companies with December monetary year-ends reported mixed interest-bearing borrowings of N7.92 trillion as of September 30, 2026, down 26.9% from N10.83 trillion in December 2025.
Borrowing cash shouldn’t be essentially an issue for a enterprise. Companies use debt to broaden manufacturing, purchase belongings, finance working capital, and help future progress.
The concern begins when debt grows sooner than an organization’s capability to repay it, or when financing prices eat a good portion of working earnings.
For this evaluation, Nairametrics examined excellent interest-bearing borrowings, debt relative to shareholders’ fairness, finance prices, working revenue, and money technology.
The findings spotlight a number of companies whose debt positions deserve nearer consideration.
- Oando recorded the highest excellent borrowings amongst the Nigerian companies analysed, with N2.16 trillion as of September 2026.
- It was adopted by Aradel Holdings with N1.51 trillion and Seplat Energy with N1.05 trillion.
- BUA Cement ranked fourth with N656.85 billion, adopted by Dangote Cement with N541.53 billion and Nestlé Nigeria with N426.31 billion.
Completing the prime ten have been MTN Nigeria with N333.32 billion, UAC of Nigeria with N262.63 billion, Presco with N140.26 billion and Transcorp with N131.82 billion.
Together, these ten companies reported N7.21 trillion in excellent borrowings as of September 30, 2026.
- Airtel Africa was excluded from this rating as a result of its consolidated borrowings cowl operations throughout 14 African nations, reasonably than Nigeria alone.
- Its September 2026 monetary statements reported $2.18 billion in borrowings, equal to N2.90 trillion utilizing the change price supplied in the monetary statements.
However, the measurement of excellent borrowings doesn’t essentially point out monetary misery. Some companies have substantial debt supported by robust earnings and money technology, whereas others carry smaller balances that place higher strain on their monetary sources.
The evaluation due to this fact additional examines whether or not companies generated enough earnings and working money move to service their obligations, reasonably than counting on absolute borrowing ranges alone.
FTN Cocoa: Debt nearly 18 occasions shareholders’ fairness
FTN Cocoa Processors stands out due to the measurement of its borrowings relative to the monetary sources supporting its operations.
At September 30, 2026, the firm reported whole borrowings of N21.95 billion, down 5.4% from N23.21 billion in December 2025. Although the discount is constructive, shareholders’ fairness stood at simply N1.23 billion.
- This means FTN Cocoa has N17.89 in borrowings for each N1 of shareholders’ fairness, certainly one of the highest debt-to-equity ratios amongst the companies examined.
- Its money steadiness of N1.79 billion lined solely a small portion of excellent debt, leaving web debt of N20.16 billion.
The firm’s reported working revenue additionally requires nearer examination.
- FTN Cocoa recorded an working revenue of N2.08 billion throughout the 9 months, in contrast with an working lack of N328.18 million in the corresponding interval of 2025.
However, it acknowledged N2.08 billion in international change beneficial properties. Excluding these beneficial properties, the firm would have recorded a marginal working loss.
Finance prices elevated from N365.11 million to N617.71 million, whereas working money move declined from N2.99 billion to N1.89 billion.
The concern is due to this fact not merely the excellent debt, however whether or not the firm’s underlying operations can generate enough recurring earnings to service it.
UAC Nigeria: N262.63 billion debt weighs on earnings
The diversified conglomerate lowered its borrowings by 23.8%, from N344.81 billion in December 2025 to N262.63 billion in September 2026.
However, its debt remained substantial relative to shareholders’ fairness of N70.85 billion. Its debt-to-equity ratio stood at 3.71 occasions, whereas web debt was N231.09 billion.
The extra vital concern is the value of sustaining these obligations.
- UAC’s finance prices elevated from N8.68 billion in 9M 2025 to N38.90 billion in 9M 2026, representing a rise of roughly 348%. Operating revenue additionally elevated sharply from N13.42 billion to N59.53 billion.
- Despite this enchancment, working revenue lined finance prices only one.53 occasions, in contrast with 1.55 occasions in the prior-year interval. That means UAC generated N1.53 in working revenue for each N1 of reported finance prices.
Nevertheless, the firm recorded a considerable enchancment in working money move, which elevated from N21.56 billion to N103.00 billion. This offers some reassurance about its capability to fulfill monetary obligations.
Its outcomes additionally replicate the expanded contribution of the packaged meals and drinks enterprise following the acquisition of CHI Limited, making the year-on-year comparability partly depending on modifications in the group’s construction.
MeCure Industries: Financing prices take up half of working revenue
Total interest-bearing debt elevated by 7.5%, from N55.33 billion in December 2025 to N59.51 billion in September 2026.
- Its shareholders’ fairness stood at N24.59 billion, translating to a debt-to-equity ratio of two.42 occasions.
- More importantly, the firm reported money holdings of simply N4.32 billion, leaving web debt of N55.18 billion.
- During the 9 months, MeCure generated N17.49 billion in working revenue however incurred N8.84 billion in finance prices.
Consequently, its working revenue lined finance prices roughly 1.98 occasions.
In sensible phrases, about half of its working revenue was equal to the reported value of financing the enterprise.
- Finance prices elevated by 33%, broadly matching the 34.3% progress in working revenue.
One encouraging growth was the restoration in working money move, which moved from destructive N5.40 billion in 9M 2025 to constructive N10.36 billion in 9M 2026.
TotalEnergies Marketing: Thin earnings cushion regardless of enchancment
TotalEnergies Marketing Nigeria illustrates how an organization can scale back borrowings and nonetheless face financing strain.
- Its whole borrowings declined modestly from N84.67 billion in December 2025 to N81.76 billion in September 2026.
- The firm had N53.38 billion in shareholders’ fairness, leading to a debt-to-equity ratio of 1.53 occasions.
- Its interest-bearing obligations included N59.26 billion in financial institution overdrafts and N22.50 billion in short-term intercompany borrowing.
The short-term nature of those services creates liquidity and refinancing concerns.
TotalEnergies generated working revenue of N19.16 billion in 9M 2026, a big enchancment from N5.65 billion in the corresponding interval of 2025.
- Finance prices additionally declined from N20.55 billion to N12.30 billion.
Despite these enhancements, curiosity protection stood at simply 1.56 occasions. This represents a considerable restoration from 0.28 occasions in 9M 2025, when working revenue was inadequate to cowl reported finance prices.
Conoil additionally warrants consideration due to its rising borrowing publicity.
- Its excellent debt elevated from N54.90 billion in December 2025 to N64.80 billion in September 2026, representing an 18% enhance. Compared with September 2025, borrowings rose by 63.3%.
With shareholders’ fairness of N44.55 billion, its debt-to-equity ratio stood at 1.45 occasions.
The extra regarding indicator is the relationship between its money technology and financing obligations.
- Conoil’s working money move was N274.81 million throughout the 9 months, whereas reported curiosity funds have been roughly N12.99 billion.
This means that money generated from atypical operations throughout the interval was inadequate, by itself, to cowl financing funds.
However, this comparability must be interpreted alongside actions in working capital, accessible liquidity, and different financing sources.
For traders, the query is whether or not the weak point in working money technology is non permanent or displays a extra persistent financing problem.
Transcorp Hotels: Debt rises greater than fivefold
Its borrowings elevated from N10.52 billion in December 2025 to N54.96 billion in September 2026, representing a 422.5% enhance. The extra debt modified its balance-sheet place considerably.
The firm moved from web money of N6.44 billion at December 2025 to web debt of N34.62 billion by September 2026.
- At the similar time, working revenue declined marginally from N24.71 billion in 9M 2025 to N24.36 billion in 9M 2026.
- Finance prices greater than doubled from N2.80 billion to N5.91 billion.
- Its curiosity protection weakened from 8.82 occasions to 4.12 occasions.
- More importantly, working money move deteriorated from constructive N18.82 billion to destructive N15.93 billion.
The essential concern is whether or not the elevated borrowings help investments that may generate enough future money returns.
Not each giant borrower is below strain. The evaluation additionally reveals why absolute borrowing balances will be deceptive.
- Dangote Cement lowered borrowings from N1.08 trillion in December 2025 to N541.53 billion in September 2026.
- MTN Nigeria additionally lowered standard borrowings from N527.67 billion to N333.32 billion, though its substantial lease liabilities should be thought of individually.
- Nigerian Breweries eradicated its excellent standard borrowings, in contrast with N59.71 billion at December 2025.
Meanwhile, Nascon Allied Industries, Unilever Nigeria and Okomu Oil Palm maintained comparatively low standard borrowing publicity and substantial money protection.
These companies exhibit that debt sustainability relies on the relationship between financing obligations, profitability, liquidity and money technology.
What traders ought to know
For traders assessing company debt, three questions are significantly vital.
- First, how a lot debt does the firm carry relative to shareholders’ fairness and its capability to generate earnings?
- Second, how a lot of its working revenue is being consumed by finance prices?
- Third, does the enterprise generate enough working money move to repay borrowings with out relying excessively on contemporary debt or fairness injections?
The 9M 2026 monetary statements present that FTN Cocoa, UAC Nigeria, MeCure Industries, TotalEnergies Marketing and Conoil warrant significantly shut scrutiny.
However, these findings don’t set up that any of the companies is unable to repay its obligations.
The central lesson is that debt turns into an issue not merely when the quantity is giant, however when the enterprise struggles to generate enough earnings and money to maintain it.
