At least 22 companies listed on the Nigerian Exchange Limited (NGX) had combined debt exposure of about N21.3 trillion in the second quarter of 2026, according to an analysis of their reported financial positions.
The figures highlight the different ways listed companies are using borrowing to finance operations, expansion, working capital and other corporate activities, while also drawing attention to the risks that can arise when debt grows significantly faster than shareholders’ equity.
The companies span banking and financial services, telecommunications, manufacturing, consumer goods, energy, insurance, healthcare and other sectors. Their balance sheets show that the size of a company’s debt alone does not provide a complete picture of its financial position.
What matters is how that borrowing is structured, what it is being used for and whether the business generates sufficient earnings and cash flow to meet its obligations.
Eleven companies recorded debt-to-equity ratios above 2.0
The analysis shows that 11 of the 22 companies had debt-to-equity ratios above 2.0 during the period.
FTN Cocoa Processors recorded the highest ratio at 28.61, followed by SCOA Nigeria at 14.37 and United Capital at 6.52.
Other companies above the 2.0 threshold were:
- Nestlé Nigeria — 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
- Infinity Trust Mortgage Bank — 2.18
A debt-to-equity ratio compares the amount of debt a company carries with shareholders’ equity. A ratio of 2.0 means that, for every N1 represented by shareholders’ equity, the company has N2 in debt.
However, the ratio should not be interpreted in isolation.
Businesses with large capital requirements can naturally carry more debt than companies that require relatively little investment in physical assets. Telecommunications operators, manufacturers, mortgage institutions and financial services companies can therefore have very different balance-sheet structures.
Access Holdings accounts for the largest debt position
While some companies recorded exceptionally high leverage relative to equity, the largest absolute debt positions were concentrated among the bigger companies.
Access Holdings had the highest reported debt at N7.27 trillion, followed by Ecobank Transnational Incorporated at N5.36 trillion.
MTN Nigeria recorded debt of N2.78 trillion, while Aradel Holdings had N1.87 trillion and United Capital reported N1.22 trillion.
Other reported debt positions included:
| Company | Reported debt |
|---|---|
| BUA Cement | N663.34bn |
| Dangote Sugar | N584.61bn |
| Nestlé Nigeria | N445.11bn |
| UACN | N308.78bn |
| VFD Group | N252.17bn |
| AIICO Insurance | N129.66bn |
| Conoil | N72.05bn |
| C&I Leasing | N71.67bn |
| Mecure Industries | N66.17bn |
| Fortis Global Insurance | N30bn |
| Infinity Trust Mortgage Bank | N27.16bn |
| FTN Cocoa Processors | N22.42bn |
| Abbey Bank | N20.37bn |
| SCOA Nigeria | N12.41bn |
| Neimeth International | N9.33bn |
| Tantalizers | N9.31bn |
The figures illustrate why absolute debt and leverage need to be viewed separately. A large company can carry billions or trillions of naira in debt without necessarily having the same leverage profile as a much smaller company.
FTN Cocoa and SCOA require closer balance-sheet scrutiny
FTN Cocoa Processors stands out because its reported debt-to-equity ratio of 28.61 is substantially higher than that of the other companies in the group.
Its reported debt was approximately N22.42 billion, against shareholders’ equity of about N783.65 million.
SCOA Nigeria presents a different balance-sheet issue. Its debt-to-equity ratio was reported at 14.37, while shareholders’ equity was negative at approximately N563.76 million.
Negative equity occurs when a company’s liabilities exceed the value represented by its shareholders’ equity. It therefore provides a different warning signal from simply having a high positive debt-to-equity ratio.
United Capital also had substantial leverage, with reported debt of N1.22 trillion against equity of about N187.09 billion, producing a debt-to-equity ratio of 6.52.
These figures do not, by themselves, establish that any of the companies is unable to meet its obligations. Investors would need to examine additional financial indicators before reaching such a conclusion.
Equity positions vary sharply across the companies
The companies also differed considerably in the size of their shareholders’ equity.
Access Holdings reported the highest equity value in the group at approximately N4.19 trillion, followed by Ecobank Transnational at N3.68 trillion and Aradel Holdings at N2.17 trillion.
MTN Nigeria had equity of approximately N930.61 billion, while BUA Cement recorded N659.13 billion.
Other reported equity positions included:
- United Capital — N187.09bn
- Dangote Sugar — N170.36bn
- AIICO Insurance — N109.15bn
- VFD Group — N104.73bn
- Nestlé Nigeria — N77.56bn
- UACN — N75.71bn
- TotalEnergies Marketing Nigeria — N52.49bn
- C&I Leasing — N49.50bn
- Conoil — N44.39bn
- Mecure Industries — N22.02bn
- Infinity Trust Mortgage Bank — N12.47bn
- Abbey Bank — N10.88bn
- Fortis Global Insurance — N6.44bn
- Tantalizers — N4.76bn
- Neimeth International — N2.84bn
- FTN Cocoa — N783.65m
- SCOA Nigeria — negative N563.76m
Lower leverage does not automatically mean lower risk
Some of the companies in the analysis had considerably lower debt-to-equity ratios.
BUA Cement was reported at 1.01, Aradel Holdings at 1.22, AIICO Insurance at 1.20, C&I Leasing at 1.50, Conoil at 1.62, and Ecobank Transnational at 1.50.
But a lower debt-to-equity ratio should not automatically be interpreted as proof of stronger financial health.
The ability to service debt also depends on revenue, operating profit, free cash flow, interest expenses, debt maturity dates, foreign-currency exposure and the nature of the assets financed with the borrowing.
Recent NGX disclosures demonstrate why looking beyond the headline debt figure is important. For example, UACN’s Q2 2026 results showed that its net finance cost increased significantly following the consolidation of C.H.I. Limited, even as the group reported stronger profit and cash generation. Its reported net debt nevertheless fell during the first half of 2026.
Why corporate borrowing matters to shareholders
Debt can provide companies with capital to expand without requiring them to raise all additional funding through new equity.
That can allow businesses to acquire assets, increase production capacity, expand networks or finance working capital while limiting dilution for existing shareholders.
The reverse can also occur.
When borrowing costs rise or operating cash flow weakens, a heavily leveraged company can face greater pressure from interest and principal repayments. Higher finance costs may reduce the amount of profit available for dividends or reinvestment.
Refinancing can also become a concern when large portions of debt mature at the same time.
For shareholders, the key question is therefore not simply “How much debt does the company have?” but rather “Can the company’s business generate enough cash and earnings to service that debt?”
Sector differences are important
Comparing debt ratios across completely different industries can also produce misleading conclusions.
A telecommunications company may borrow to fund network infrastructure, while a manufacturer may borrow for factories and equipment. A financial institution has an entirely different balance-sheet model because borrowing and other financial liabilities are fundamental to its business.
This makes sector-adjusted analysis particularly important when investors assess companies listed on the NGX.
The exchange’s disclosure framework provides investors with access to periodic financial information and other company disclosures, allowing the debt figures to be examined alongside earnings and other balance-sheet indicators.
The wider Nigerian economy
Corporate borrowing also has implications beyond individual listed companies.
When debt is directed towards productive investment, it can support factory expansion, telecommunications infrastructure, energy projects, employment and broader economic activity.
However, excessive leverage can have the opposite effect if companies are forced to reduce capital expenditure, sell assets or postpone expansion because of financing pressure.
Heavy corporate borrowing can also matter to banks and other lenders because repayment difficulties may eventually affect the quality of their loan portfolios.
This makes corporate leverage an issue relevant not only to shareholders but also to creditors, employees, suppliers and the wider economy.
What investors should watch next
The second-quarter debt figures provide a snapshot rather than a final assessment of the financial condition of the 22 companies.
Investors monitoring these companies should pay attention to several indicators in subsequent results:
- Interest-cover ratio — whether operating earnings are sufficient to cover finance costs.
- Operating cash flow — whether reported profits are translating into actual cash.
- Debt maturity profile — when major loans and other obligations fall due.
- Currency exposure — particularly where borrowing or obligations are denominated in foreign currencies.
- Net debt — debt after accounting for available cash and cash equivalents.
- Profitability trends — whether earnings are improving or deteriorating.
- Capital expenditure — whether new borrowing is supporting productive expansion.
- Shareholders’ equity — particularly for companies with very high leverage or negative equity.
NGX’s published financial disclosure resources continue to provide investors with access to interim and other company filings, making subsequent quarterly reports important for determining whether the balance-sheet positions reported in Q2 are improving, stable or deteriorating.
The N21.3 trillion aggregate therefore tells only part of the story. The more significant issue for investors is how each company converts borrowed capital into earnings and cash flow, and whether those resources remain sufficient to meet its financial obligations as economic and financing conditions change.
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