Nigeria’s largest listed companies had a combined debt of ₦6.25 trillion as of June 2026, with bank loans and other direct borrowing facilities accounting for the majority of their outstanding debt.
A review by Nairametrics of 19 of the largest companies in the Nigerian Exchange Group (NGX) 30 showed that about ₦4.64 trillion, representing 74.2 percent of their total debt, came from bank loans and other direct borrowing arrangements.
The remaining ₦1.61 trillion, or 25.8 percent, was raised through bonds, commercial papers and other debt securities.
The figures highlight the continued importance of Nigerian banks in providing financing to some of the country’s biggest businesses, even as companies increasingly explore other sources of funding.
The companies covered in the review operate across several major sectors of the Nigerian economy, including oil and gas, telecommunications, cement, consumer goods, agriculture, power and hospitality.
Some of the companies included are Dangote Cement, BUA Cement, MTN Nigeria, Seplat Energy, Aradel Holdings, BUA Foods, Nestlé Nigeria, Nigerian Breweries, Presco and Geregu Power.
The heavy dependence on bank borrowing comes at a time when lending rates in Nigeria remain high. According to the report, bank lending rates remain above 30 percent for many borrowers, increasing the cost of financing for businesses.
Despite the high cost of credit, companies continue to rely on banks because large-scale businesses often require significant amounts of capital to finance expansion, working capital, infrastructure and other long-term projects.
The high level of corporate borrowing also reflects the financing needs of businesses operating in an economy where companies are dealing with rising operating costs, foreign exchange pressures and the need to expand production capacity.
Bank loans remain attractive to many companies because they can provide relatively direct access to substantial amounts of funding compared with some capital-market alternatives.
However, borrowing at high interest rates can place pressure on companies’ finances. Businesses must generate enough revenue and cash flow to service both the principal and interest on their loans.
The increasing use of bonds and commercial papers shows that Nigeria’s corporate debt market is also becoming an important alternative.
With ₦1.61 trillion raised through debt securities among the companies reviewed, businesses are gradually diversifying their funding sources instead of depending entirely on commercial banks.
The development is also important for Nigerian banks because large corporate borrowers represent a major part of the banking sector’s lending activities. Increased corporate lending can generate interest income for banks, but it also exposes lenders to credit risks if companies struggle to repay their obligations.
For investors, the debt levels of major listed companies are an important factor to consider when assessing their financial health. A company with substantial debt may have access to capital for expansion, but it may also face higher financial costs and repayment obligations.
The figures therefore present a mixed picture of corporate Nigeria. On one hand, the availability of bank financing allows major businesses to continue investing and expanding. On the other hand, the high cost of borrowing could put pressure on profitability if interest rates remain elevated.
The continued growth of Nigeria’s corporate debt market could provide companies with more options in the future. Greater access to bonds, commercial papers and other securities could help businesses reduce their dependence on traditional bank loans.
For now, however, banks remain the dominant source of external financing for many of Nigeria’s biggest listed companies.
The ₦6.25 trillion combined debt figure therefore underscores both the scale of financing required by major Nigerian businesses and the central role played by the country’s banking sector in supporting corporate activity.
