Analysis of the audited 2025 full year financial statements of leading Fast Moving Consumer Goods companies in Nigeria has revealed that the firms accumulated a combined debt burden of about N1.963 trillion. The development highlights the growing financial pressure facing operators in the consumer goods sector amid rising inflation, high interest rates and foreign exce volatility.
The review showed that while some companies successfully reduced borrowings and improved liquidity positions, others remained heavily dependent on debt to sustain operations, finance expansion projects and manage increasing production costs.
Dangote Sugar Refinery Plc emerged as the most indebted FMCG company in 2025 with total borrowings of N725.31 billion, representing a 1.09 percent increase from N717.51 billion recorded in 2024. The company’s net debt stood at N672.73 billion, while its debt ratio of 0.75 indicated that a large portion of its assets was financed through borrowings.
Nestlé Nigeria Plc followed with total debt of N476.04 billion despite reducing borrowings by 27.18 percent from the previous year. However, its debt to equity ratio rose sharply to 65.64 times, raising concerns about the company’s capital structure and financial ility.
BUA Foods Plc ranked third with debt of N469.38 billion but maintained a stronger liquidity position due to significant cash reserves.
Further analysis showed that PZ Cussons Nigeria Plc reduced its debt profile by nearly 20 percent to N71.27 billion, although the company still recorded a negative equity position.
Nigerian Breweries Plc posted one of the strongest deleveraging performances in the sector by cutting debt by 64.68 percent to N59.71 billion. The brewer also ended the year with a positive net cash position, reflecting improved liquidity.
Other firms recorded mixed performances. Champion Breweries Plc significantly increased borrowings, while Guinness Nigeria Plc also recorded higher debt levels amid operating pressures.
Meanwhile, Honeywell Flour Mills Plc maintained a le debt profile, while Cadbury Nigeria Plc reduced debt as part of efforts to strengthen its balance sheet.
At the lower end, Vitafoam Nigeria Plc recorded lower debt levels and maintained strong liquidity.
Some firms ended the year with stronger cash positions than debt, including International Breweries Plc, Unilever Nigeria Plc and NASCON Allied Industries Plc.
Industry analysts attributed the varying debt profiles to worsening macroeconomic conditions, including persistent inflation, naira depreciation and rising borrowing costs, which continue to increase operating expenses across the sector.
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