About 22 companies listed on the Nigerian Exchange Limited (NGX) reported a combined total debt of ₦21.3 trillion in the second quarter of 2026. The figures reflect the different ways these firms are funding operations and growth.
Of the 22 companies, 11 have debt-to-equity ratios above 2.0. This indicates heavier reliance on borrowed funds relative to shareholders’ equity and can affect interest costs, cash-flow flexibility and returns to shareholders, depending on each company’s earnings and sector.
The companies are: VFD Group, United Capital, UACN, TotalEnergies Marketing Nigeria, Tantalizers, SCOA Nigeria, Nestlé Nigeria, Neimeth International Pharmaceuticals, MTN Nigeria, Mecure Industries, Infinity Trust Mortgage Bank, FTN Cocoa Processors, Ecobank Transnational Incorporated, Dangote Sugar, Conoil, C&I Leasing, BUA Cement, Aradel Holdings, AIICO Insurance, Access Holdings, Abbey Bank and Fortis Global Insurance.
Companies with debt-to-equity ratios above 2.0
Analysis of available data shows FTN Cocoa Processors with the highest ratio at 28.61, followed by SCOA Nigeria at 14.37 and United Capital at 6.52.
Other companies above 2.0 include Nestlé Nigeria (5.74), Fortis Global Insurance (4.66), UACN (4.10), Neimeth International (3.29), Mecure Industries (3.0), MTN Nigeria (2.98), VFD Group (2.4) and Infinity Trust Mortgage Bank (2.18).
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The debt-to-equity ratio compares a company’s total debt with its shareholders’ equity. A ratio of 1.0 means debt roughly equals equity; a ratio of 2.0 means there are two naira of debt for every naira of equity. There is no single “normal” level. Capital-intensive sectors such as manufacturing, telecommunications and banking often operate with higher leverage. Very high ratios can raise financial risk if interest rates rise or cash flows weaken.
Debt amounts
Total debt varies widely across the group — from ₦9.31 billion at Tantalizers to ₦7.27 trillion at Access Holdings.
Other notable figures include Ecobank Transnational Incorporated (₦5.36 trillion), MTN Nigeria (₦2.78 trillion), Aradel Holdings (₦1.87 trillion), United Capital (₦1.22 trillion), BUA Cement (₦663.34 billion), Dangote Sugar (₦584.61 billion), Nestlé Nigeria (₦445.11 billion), UACN (₦308.78 billion), VFD Group (₦252.17 billion), AIICO Insurance (₦129.66 billion), Conoil (₦72.05 billion), C&I Leasing (₦71.67 billion), Mecure Industries (₦66.17 billion), Fortis Global Insurance (₦30 billion) and Infinity Trust Mortgage Bank (₦27.16 billion).
Smaller amounts were recorded by FTN Cocoa (₦22.42 billion), Abbey Bank (₦20.37 billion), SCOA Nigeria (₦12.41 billion), Neimeth (₦9.33 billion) and Tantalizers (₦9.31 billion).
FTN Cocoa and SCOA
FTN Cocoa’s ratio of 28.61 means the company has ₦28.61 of debt for every ₦1 of shareholders’ equity. Its total debt stands at ₦22.42 billion against equity of about ₦783.65 million.
SCOA Nigeria’s ratio of 14.37 is also elevated; the company reports negative equity of ₦563.76 million. Negative shareholders’ equity indicates that liabilities exceed the equity base and is generally viewed as a cautionary signal.
United Capital’s ratio of 6.52, with total debt of ₦1.22 trillion and equity of ₦187.09 billion, also points to significant leverage.
Equity values
Access Holdings recorded the highest equity at ₦4.19 trillion, followed by Ecobank (₦3.68 trillion), Aradel Holdings (₦2.17 trillion), MTN Nigeria (₦930.61 billion), BUA Cement (₦659.13 billion), United Capital (₦187.09 billion), Dangote Sugar (₦170.36 billion), AIICO Insurance (₦109.15 billion), VFD Group (₦104.73 billion) and Nestlé Nigeria (₦77.56 billion).
Other equity figures include UACN (₦75.71 billion), TotalEnergies Marketing Nigeria (₦52.49 billion), C&I Leasing (₦49.5 billion), Conoil (₦44.39 billion), Mecure Industries (₦22.02 billion), Infinity Trust Mortgage Bank (₦12.47 billion), Abbey Bank (₦10.88 billion), Fortis Global Insurance (₦6.44 billion), Tantalizers (₦4.76 billion), Neimeth (₦2.84 billion), FTN Cocoa (₦783.65 million) and SCOA Nigeria (negative ₦563.76 million).
Analyst views
Ambrose Omordion, Analyst and Chief Operating Officer at Investdata Consulting, noted that a high debt-to-equity ratio does not automatically signal distress. Investors should also review earnings, cash flow, interest-cover ratios, debt maturity profiles and the purpose of the borrowing.
“High leverage can magnify both gains and losses,” he said. “Where borrowed funds are put into profitable investments, debt can enhance shareholder returns. If earnings and cash flows weaken, a heavily indebted company may struggle to meet interest and principal obligations. Investors may therefore watch companies where high leverage coincides with weak profitability, negative shareholders’ funds or declining cash flows.”
He also pointed to several firms with more moderate leverage: BUA Cement (1.01), Aradel Holdings (1.22), AIICO Insurance (1.20), Conoil (1.62), C&I Leasing (1.50) and Ecobank Transnational Inc. (1.50).
Clifford Egbomeade, Economic Analyst and Communications Expert, emphasised that debt levels should not be judged in isolation. Investors need to consider earnings quality, cash-generation capacity, asset base, interest obligations and the specific sector.
On the broader economy he observed that productive corporate borrowing can support expansion, jobs and output, while widespread excessive leverage could increase vulnerability — especially where companies rely heavily on foreign-currency debt or face weak demand and high financing costs.
Wider context
Corporate debt can contribute to economic growth when it finances productive investment.
Manufacturing expansion, telecommunications upgrades and infrastructure projects can raise employment and productivity. At the same time, companies under severe debt pressure may cut capital spending, reduce headcount or delay growth plans. For banks and other lenders, elevated corporate debt levels also matter because repayment difficulties can affect asset quality.
Overall, the data underline the value of strong corporate governance, careful borrowing decisions and adequate capitalisation.
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