Major Nigerian Firms Owe N5.57 Trillion in Loans

Seven of Nigeria’s largest listed companies, including Aradel Holdings, Seplat Energy, BUA Cement, Dangote Cement, Dangote Sugar Refinery, Nestlé Nigeria, and MTN Nigeria, have a combined debt stock of at least N5.57 trillion, primarily sourced from bank loans and direct borrowings. In the oil and gas sector, Aradel Holdings and Seplat Energy owe approximately N2.92 trillion, with Aradel's N1.81 trillion debt almost entirely from bank loans, while Seplat's N1.11 trillion is largely from debt securities.

BUA Cement has N663.21 billion in debt, mainly from bank loans, whereas Dangote Cement's N612.46 billion debt is more balanced between bonds and direct loans. Consumer goods companies Dangote Sugar Refinery and Nestlé Nigeria owe N584.15 billion and N445.01 billion, respectively.

MTN Nigeria has a unique structure, with 92% of its N342.59 billion in borrowings from bonds, protecting it from high bank lending rates. Despite the growth in Nigeria's debt markets, bank loans remain crucial for long-term financing needs.