Nigerian Consumer Goods Firms Cut Borrowing Costs by 26%

In Nigeria, consumer goods firms are experiencing a significant reduction in borrowing costs, with interest expenses dropping by 25.8% to N77.64 billion in H1 2026 from N104.78 billion in H1 2025. This decline represents a reduction of approximately N27.14 billion.

The total loans and borrowings of these companies also fell by 32% to N832 billion from N1.1 trillion. Notable companies such as BUA Foods saw a 47.8% decrease in interest expenses, from N10.1 billion in H1 2025 to N5.27 billion in H1 2026.

Cadbury Nigeria's interest expenses decreased by 56% from N2.13 billion to N937 million, while Unilever Nigeria's costs fell by 38.8% from N356 million to N218 million. Nascon Allied Industries maintained the lowest financing burden, with a decline from N114 million to N75 million.

However, Champion Breweries, Nestlé Nigeria, and Dangote Sugar Refinery reported increases in interest expenses.