FMCG Firms Reduce Finance Costs by N21bn in H1 2026

In the first half of 2026, combined finance costs across seven major listed consumer goods companies in Nigeria decreased by 14.4% to N124.94 billion, down from N145.94 billion in the same period of 2025. This decline is attributed to the companies recovering from the naira devaluation shock and actively working to reduce their debt.

The analysis included Nestlé Nigeria, NASCON Allied Industries, Nigerian Breweries, Dangote Sugar Refinery, Guinness Nigeria, International Breweries, and Champion Breweries. Cadbury Nigeria was excluded from the total due to a lack of disclosed finance income and expense split, although its implied net finance charge fell by approximately 89.2%.

The decline in finance costs varied among companies, with four showing double-digit improvements while three experienced increases. Analysts, including Oluwakemi Abiodun from CardinalStone Securities, noted that different debt strategies were employed by the companies, with Dangote Sugar Refinery focusing on deleveraging through a rights issue.

Improved earnings were identified as a primary driver for the overall decline in finance costs.