Top Manufacturing Companies Accumulate N1.96 Trillion Debt in 2025

An analysis of the 2025 full-year financial statements of Nigeria’s top ten Fast-Moving Consumer Goods (FMCG) companies has revealed a total debt burden of N1.963 trillion.

This growing debt load highlights the mounting pressures on manufacturers in the sector amid soaring inflation, rising interest rates, and foreign exchange volatility.

Growing Debt Burden Amid Economic Challenges

The analysis shows a mixed picture among the leading FMCG firms. While some companies have taken steps to reduce borrowings and improve liquidity, others continue to rely heavily on debt to fund operations, manage rising production costs, and finance expansion.

Dangote Sugar Refinery Plc emerged as the most indebted FMCG company in Nigeria, with total borrowings of N725.31 billion. This represents a slight 1.09% increase from the previous year’s debt of N717.51 billion. The company’s net debt stood at N672.73 billion, with a debt ratio of 0.75, indicating that a significant portion of its assets was financed through borrowings. Analysts have raised concerns about Dangote Sugar’s high leverage, which could expose the company to elevated financing costs in the current high-interest-rate environment.

Other Key FMCG Players

Following closely behind Dangote Sugar, Nestlé Nigeria Plc reported total debt of N476.04 billion. While this marked a reduction of 27.18% from N653.70 billion in 2024, Nestlé’s debt-to-equity ratio reached a concerning 65.64 times. This raised concerns about its capital structure and potential solvency risks, especially if earnings were to weaken.

BUA Foods Plc ranked third with N469.38 billion in debt. However, the company maintained a stronger liquidity position supported by a sizable cash reserve, bringing its net debt down to N189 billion, providing a buffer against financial strain.

Deleveraging Efforts and Improvements in Liquidity

PZ Cussons Nigeria Plc successfully reduced its debt profile by nearly 20%, bringing it down to N71.27 billion. However, the company’s negative equity position of N17.34 billion indicates ongoing stress on its balance sheet.

On a more positive note, Nigerian Breweries Plc made significant progress in reducing its debt. The company slashed its debt by 64.68%, from N169.05 billion in 2024 to N59.71 billion in 2025. This effort was accompanied by a net cash position of N1.43 billion, reflecting improved liquidity and financial resilience.

Mid-Tier Companies and Debt Shifts

Among mid-tier FMCG operators, Champion Breweries Plc recorded a sharp rise in its borrowings to N59.03 billion, a significant increase from minimal levels in the previous year. Guinness Nigeria Plc also saw a 9.43% increase in debt, bringing its total to N43.92 billion as it faced continued operating challenges.

On the other hand, Honeywell Flour Mills Plc maintained a stable debt profile at N26.97 billion, while Cadbury Nigeria Plc reduced its debt by 30.49%, bringing its total to N22.81 billion as part of a broader effort to reduce its liabilities.

Smaller Players with Strong Liquidity

At the lower end of the debt spectrum, Vitafoam Nigeria Plc reported a debt of N9.30 billion, down 33.5% year-on-year. The company also maintained a strong liquidity position, with cash holdings of N9.02 billion, leaving net debt at just N286 million.

Meanwhile, some FMCG companies ended the year with stronger liquidity positions than debt. Notably, International Breweries Plc ended with a net cash of N155.24 billion, Unilever Nigeria Plc with N108.58 billion, and NASCON Allied Industries Plc with N41.57 billion.