Nestlé, Unilever Nigeria Loans Reach $316.62 Million in 2025

In 2025, Nestlé Nigeria Plc and Unilever Nigeria Plc reported intercompany loans totaling $316.62 million, as disclosed in their financial statements filed with the Nigerian Exchange (NGX). This figure highlights a growing reliance on foreign currency to sustain operational capital investments amidst a challenging macroeconomic environment characterized by foreign exchange constraints.

Nestlé Nigeria's borrowing strategy involves a structured arrangement to manage long-term financing, raising concerns about currency risk due to increased exposure to dollar-denominated liabilities. The loans, which span multiple tranches obtained between 2020 and 2023, feature varying maturities and interest margins, indicating a sustained borrowing approach to navigate operational capital expenditure demands.

Unilever Nigeria's borrowing, while significantly smaller, reflects a collaborative financial strategy aimed at supporting environmental initiatives. Nestlé's loan maturity profile is concentrated between 2027 and 2030, offering a staggered repayment schedule that may alleviate short-term liquidity pressures, although heavy exposure to dollar-denominated debt remains a concern.