Nigeria's biggest listed firms owe N6.25tn, and 74.2% of it is bank loans

Nigeria's largest listed companies owed a combined N6.25 trillion as of June 2026, with about N4.64 trillion, or 74.2%, coming from bank loans and other direct borrowing facilities. Only N1.61 trillion, or 25.8%, was raised through bonds, commercial papers and other debt securities.

The figures come from a review of 19 of the largest companies on the NGX 30. They cut across consumer goods, industrials, oil and gas, power, telecommunications, agriculture and hospitality, and include Dangote Cement, BUA Cement, MTN Nigeria, Seplat Energy, Aradel Holdings, BUA Foods, Nestle Nigeria, Nigerian Breweries, Presco and Geregu Power.

The reliance on banks persists even as Nigeria's corporate debt market grows, and at a time when lending rates for many borrowers remain above 30%.

Gross debt falls 19.3%

The companies did reduce their borrowings in the first half of 2026. Combined gross debt fell by N1.50 trillion, or 19.3%, to N6.25 trillion from N7.75 trillion in December 2025. Cash balances rose to N5.02 trillion from N4.53 trillion, cutting net debt to N1.23 trillion from N3.22 trillion.

For every N100 the companies owed, about N74 came from direct loans and only N26 from bonds, commercial papers and other securities. That tilt stands out because the debt capital market has been busy. Nigerian companies raised about N1.61 trillion through commercial papers in 2025, up 40% from N1.15 trillion in 2024, and about 24 companies had issued commercial papers by May 2026. Outstanding corporate bonds reached about N2.30 trillion by June, while outstanding commercial papers stood at N465.34 billion, according to FMDQ data.

Oil and gas carries the load

Aradel Holdings and Seplat Energy owe a combined N2.92 trillion, about 47% of the N6.25 trillion total, reflecting the capital-intensive nature of the sector, including acquisitions, field development and infrastructure. Almost all of Aradel's N1.81 trillion debt came from bank and other direct loans, while about 81% of Seplat's N1.11 trillion was raised through debt securities.

Among industrial firms, BUA Cement owed N663.21 billion, with about 93.5% from bank and other loans. Dangote Cement owed N612.46 billion, with about 44.9% raised through bonds, commercial papers and other securities.

Dangote Sugar and Nestle Nigeria owed N584.15 billion and N445.01 billion respectively, making financing costs central to profitability. Dangote Sugar's management has pointed to dependence on imported raw materials, spare parts and critical chemicals, with letters of credit financing hard-currency working-capital needs. Nigerian Breweries has also flagged working-capital management as key to its cash generation. MTN Nigeria stood out for its use of the debt market, with bonds making up about 92% of its N342.59 billion conventional borrowings as of June 2026.

Why banks still win

The Monetary Policy Rate stood at 26.5% during the period, and Nairametrics' review of bank lending rates found maximum rates above 30% at several banks, with some exceeding 40%. CBN data showed an average maximum lending rate of about 34.5% in May. Commercial paper rates averaged around 22.5% in the first five months of 2026, and the average commercial paper discount rate fell to about 19.2% by June.

The gap explains the growing appeal of commercial papers and bonds. But debt securities cannot fully replace bank financing. Commercial papers are typically short-term, while large acquisitions, industrial projects and infrastructure need longer, more flexible funding. Banks also provide revolving facilities, overdrafts, project loans and acquisition financing structured around specific needs.

For Nigerian businesses, the cost of servicing these loans feeds into prices and margins, and heavy bank exposure keeps corporate cash flow sensitive to further rate moves.