FMCG Companies Cut Debts by 28% to N1.2 Trillion in 2025

In 2025, major fast-moving consumer goods (FMCG) companies in Nigeria, including Nestlé Nigeria Plc, Nigerian Breweries Plc, Guinness Nigeria Plc, Unilever Nigeria Plc, and Vita Foam, successfully reduced their debts by 28% to N1.2 trillion, down from N1.66 trillion in 2024. This significant deleveraging is attributed to deliberate financial restructuring efforts aimed at reducing debt exposure amidst sustained cost pressures and a high-interest rate environment.

The analysis by Nairametrics highlights that while most companies managed to decrease their liabilities, PZ Cussons was noted as an outlier with an increase in debt. The overall financial data indicates a broad-based effort among FMCG firms to cut down on debt despite macroeconomic headwinds, which has led to a notable decline in interest expenses and improved profit trends.

Financial experts attribute this trend to lessons learned from the financial strains experienced in 2023 and 2024, emphasizing the importance of diversifying funding sources to reduce reliance on expensive bank loans.