Debt Surge: Eight Nigerian Companies Rack Up ₦8.67 Trillion Liabilities
As of December 2024, eight Nigerian publicly listed companies have seen a sharp rise in their total liabilities, reaching ₦8.67 trillion, according to financial statements filed with the Nigerian Exchange (NGX). This increase is driven by both current liabilities (short-term obligations due within a year) and non-current liabilities (long-term debts).
Oando Plc Leads with a 165% Debt Surge
Oando Plc recorded the highest rise in liabilities, surging 164.95% from ₦2.94 trillion in 2023 to ₦7.78 trillion in 2024. The company’s debt includes:
• ₦1.22 trillion in non-current liabilities (long-term borrowings, deferred income tax, decommissioning provisions, and employee retirement benefits).
• ₦6.56 trillion in current liabilities, primarily from trade payables and short-term borrowings.
Bua Foods Sees Debt Reduction, While Other Firms Struggle
Unlike Oando, Bua Foods reduced its liabilities by 23.5%, bringing it down from ₦808.38 billion to ₦618.87 billion in 2024. The company’s financial obligations include:
• ₦22.31 billion in deferred tax liabilities.
• ₦724.12 billion in long-term borrowings.
• ₦316.26 billion in short-term borrowings.
Other notable companies with rising liabilities include:
• Honeywell Flour Mills: ₦136.21 billion (+8% from 2023).
• Caverton Offshore: ₦104.5 billion (+30.6%), with current liabilities surging by 90.72%.
• SCOA Nigeria: ₦12.89 billion (+7.2%).
• ABC Transport: ₦6.21 billion (+28.8%).
• Triple Gee: ₦5.6 billion (+28.9%).
• Learn Africa Plc: ₦2.08 billion (+66.4%).
Debt Trends Across the Nigerian Market
Earlier reports showed that as of September 2024, 15 listed companies on the NGX had a combined non-current debt of ₦3.62 trillion, compared to ₦2.74 trillion in 2023—indicating a growing reliance on borrowing amid economic uncertainties.
As Nigerian businesses continue to navigate a challenging economic landscape, investors and stakeholders will be closely monitoring how these rising liabilities impact profitability, cash flow, and long-term sustainability.
As of December 2024, eight Nigerian publicly listed companies have seen a sharp rise in their total liabilities, reaching ₦8.67 trillion, according to financial statements filed with the Nigerian Exchange (NGX). This increase is driven by both current liabilities (short-term obligations due within a year) and non-current liabilities (long-term debts).
Oando Plc Leads with a 165% Debt Surge
Oando Plc recorded the highest rise in liabilities, surging 164.95% from ₦2.94 trillion in 2023 to ₦7.78 trillion in 2024. The company’s debt includes:
• ₦1.22 trillion in non-current liabilities (long-term borrowings, deferred income tax, decommissioning provisions, and employee retirement benefits).
• ₦6.56 trillion in current liabilities, primarily from trade payables and short-term borrowings.
Bua Foods Sees Debt Reduction, While Other Firms Struggle
Unlike Oando, Bua Foods reduced its liabilities by 23.5%, bringing it down from ₦808.38 billion to ₦618.87 billion in 2024. The company’s financial obligations include:
• ₦22.31 billion in deferred tax liabilities.
• ₦724.12 billion in long-term borrowings.
• ₦316.26 billion in short-term borrowings.
Other notable companies with rising liabilities include:
• Honeywell Flour Mills: ₦136.21 billion (+8% from 2023).
• Caverton Offshore: ₦104.5 billion (+30.6%), with current liabilities surging by 90.72%.
• SCOA Nigeria: ₦12.89 billion (+7.2%).
• ABC Transport: ₦6.21 billion (+28.8%).
• Triple Gee: ₦5.6 billion (+28.9%).
• Learn Africa Plc: ₦2.08 billion (+66.4%).
Debt Trends Across the Nigerian Market
Earlier reports showed that as of September 2024, 15 listed companies on the NGX had a combined non-current debt of ₦3.62 trillion, compared to ₦2.74 trillion in 2023—indicating a growing reliance on borrowing amid economic uncertainties.
As Nigerian businesses continue to navigate a challenging economic landscape, investors and stakeholders will be closely monitoring how these rising liabilities impact profitability, cash flow, and long-term sustainability.