Nigerian listed companies earned N179.5 billion in finance income during the first half of 2026, representing a 174 per cent increase from N65.6 billion recorded in the same period of 2025.
The figure is based on the H1 2026 financial statements of 19 listed companies that reported positive growth in finance income during the period.
Across the broader sample of companies reviewed, total finance income exceeded N200 billion.
Finance income largely comprises interest earned from fixed-income securities, including Treasury bills, Federal Government of Nigeria bonds, short-term bank deposits and money market placements.
The sharp increase reflects the high-interest-rate environment Nigerian companies have operated in over the past few years.
MTN Nigeria was the largest finance income earner among the companies reviewed, recording N46.8 billion during the period.
The telecommunications company held a combined liquid asset position of N874 billion, comprising N459 billion in cash and short-term deposits and another N415 billion in separately classified Treasury bills and FGN bonds.
MTN also purchased a net N240 billion in government bonds and Treasury bills during the first half of the year.
Dangote Cement recorded N14.8 billion in interest income, while its cash position doubled from N397.6 billion in December 2025 to N796.3 billion in June 2026.
The company’s June cash position included N216.4 billion in short-term bank deposits.
Julius Berger Nigeria posted N9 billion in gross finance income, compared with profit after tax of N6.1 billion, while Presco also generated N9 billion in finance income.
NASCON Allied Industries more than doubled its finance income to N5.3 billion, while Seplat Energy reported $9.1 million, representing a 10.3 per cent increase from $8.3 million a year earlier.
However, not all companies benefited from the high-interest-rate environment.
BUA Cement’s finance income fell from N18.7 billion to N7.5 billion, while Oando’s finance income declined by N6.1 billion.
The contrasting results highlight how companies with significant borrowings can experience the other side of high interest rates through rising finance costs.
The increase in finance income has been closely linked to the Central Bank of Nigeria’s tight monetary policy stance.
The Monetary Policy Rate currently stands at 27.5 per cent, while Treasury bill and Federal Government bond yields have remained elevated.
The high-rate environment has pushed 91-day Treasury bill yields above 20 per cent, with longer-dated FGN bonds offering comparable or higher returns.
Cash-rich companies have been able to deploy surplus liquidity into these instruments, while banks also place corporate deposits into government securities and other interest-bearing assets.
Deposit rates received by companies typically range between 18 per cent and 22 per cent, depending on the tenor and amount involved.
For companies with both substantial cash holdings and borrowings, finance income can partially offset higher borrowing costs.
The distinction between gross and net finance income is therefore important, as companies that have reduced their debt levels and accumulated cash are better positioned to benefit from prevailing interest rates.
However, manufacturers have criticised the current interest-rate environment, arguing that high borrowing costs are restricting access to credit.
The Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, has called on the CBN to reduce the MPR below 20 per cent to improve credit access for manufacturers.
Meanwhile, total cash and short-term deposits held by the 35 listed companies reviewed increased by N437 billion to N5.41 trillion between December 2025 and June 2026.
The increase represented an 8.8 per cent rise in aggregate cash holdings.
For companies such as Dangote Cement, BUA Cement, BUA Foods and NASCON, rising cash balances and finance income largely reflect the deployment of surplus operating cash into short-term deposits and investments.
BUA Foods placed N103 billion in new short-term investments during H1 2026, compared with no such investments on its balance sheet in December 2025.
MTN Nigeria’s reported cash balance fell by N174 billion to N459 billion, but the company simultaneously rotated a net N240 billion into longer-dated FGN Treasury bills and bonds.
This brought its total liquid asset base to N874 billion.
Nestle Nigeria’s cash balance, meanwhile, fell 84 per cent from N35.3 billion to N5.6 billion despite reporting significant finance income.
Part of Nestle’s finance income included non-cash foreign exchange translation gains on euro-denominated intercompany liabilities.
The figures show that reported finance income does not necessarily translate into stronger cash positions, particularly when non-cash gains form part of the reported figure.
The surge in finance income also comes amid a mixed but largely positive trading period for Nigerian listed companies across several sectors.
The cement industry was among the strongest performers, with Dangote Cement and BUA Cement recording combined revenue of N3.92 trillion, representing a 23.7 per cent year-on-year increase.
Their combined pre-tax profit rose 47.1 per cent to N1.68 trillion.
Consumer goods companies recorded combined revenue of N2.09 trillion, down 3.9 per cent, while combined pre-tax profit increased 43 per cent to N556.3 billion, partly supported by finance income.
MTN Nigeria reported revenue of N2.99 trillion, representing a 25.9 per cent increase.
The three listed breweries recorded combined revenue of N1.41 trillion and pre-tax profit of N269.4 billion.
In the agribusiness sector, Presco, Okomu Oil and HBM Nigeria recorded combined revenue of N198.8 billion, up approximately 59 per cent.
Their combined pre-tax profit more than doubled to N122.2 billion.
Performance across industrials, pharmaceuticals, transport and aviation, and ICT and fintech companies was more varied.
The results highlight how operating conditions, alongside individual cash and debt positions, are determining the extent to which Nigerian companies benefit from the country’s high-interest-rate environment.
