22 Nigerian Companies Owe N21.3 Trillion as Debt Piles Up

It's a heavy burden, this N21.3 trillion. That's the mountain of debt piling up on the shoulders of 22 companies listed on the Nigerian Exchange Limited (NGX) as of the second quarter of 2026. They're borrowing to keep the lights on, to grow, to chase profits. But the sheer size of this debt is raising eyebrows.

The numbers tell a worrying tale: eleven of these companies have a debt-to-equity ratio higher than 2.0. This means for every N1 they have in their own funds (equity), they owe N2 or more to lenders. This reliance on borrowed money puts them at risk, especially if interest rates jump or their business suddenly slows down. It’s like building a house on a shaky foundation – you hope it stands, but one strong gust of wind could bring it all crashing down.

When we talk about who is carrying the biggest load, some names stand out starkly. FTN Cocoa Processors is practically swimming in debt, with a debt-to-equity ratio of a whopping 28.61. For every N1 the company owns, it owes N28.61! Its total debt stands at N22.42 billion, but its equity is a mere N783.65 million. Then there's SCOA Nigeria, right behind with a ratio of 14.37.

They’re in a bit of a pickle because their liabilities are actually bigger than their equity. This means they have negative equity of N563.76 million, a serious red flag.

Others aren't faring much better on the debt-to-equity scale. United Capital is borrowing heavily, with a ratio of 6.52. Nestlé Nigeria, a name many of you know, is also on this list at 5.74. Fortis Global Insurance follows at 4.66, then UACN at 4.10, Neimeth International Pharmaceuticals at 3.29, Mecure Industries at 3.0, MTN Nigeria, the big mobile operator, at 2.98, VFD Group at 2.4, and Infinity Trust Mortgage Bank rounding out the list above 2.0 with 2.18.

But the debt-to-equity ratio is just one piece of the puzzle. The actual amount of money owed varies wildly. Tantalizers is at the lower end with N9.31 billion, while Access Holdings is carrying an unbelievable N7.27 trillion. Yes, you read that right: trillion. Ecobank Transnational Incorporated isn't far behind with N5.36 trillion, and MTN Nigeria is also a major player in the debt game with N2.78 trillion.

Aradel Holdings owes N1.87 trillion, and United Capital has N1.22 trillion hanging over its head.

It’s not just the big players. BUA Cement has N663.34 billion in debt, Dangote Sugar N584.61 billion, and Nestlé Nigeria N445.11 billion. UACN has N308.78 billion, VFD Group N252.17 billion, and AIICO Insurance N129.66 billion. Conoil is at N72.05 billion, C&I Leasing N71.67 billion, Mecure Industries N66.17 billion, Fortis Global Insurance N30 billion, and Infinity Trust Mortgage Bank N27.16 billion. FTN Cocoa Processors has N22.42 billion, Abbey Bank N20.37 billion, SCOA Nigeria N12.41 billion, Neimeth N9.33 billion, and Tantalizers N9.31 billion.

Now, what does this all mean for investors? Ambrose Omordion, Chief Operating Officer at Investdata Consulting, cautions against jumping to conclusions. A high debt-to-equity ratio doesn't automatically signal doom. Investors need to look deeper – at the company’s profits, its cash flow, how easily it can pay the interest on its loans, when those loans are due, and why the money was borrowed in the first place. Too much debt can seriously amplify both wins and losses.

If the borrowed money is used wisely to make more money, shareholders can see bigger returns. But if things go south, the losses are just as magnified.

Looking at who actually owns the companies (their equity), Access Holdings has the largest chunk, valued at N4.19 trillion. Ecobank follows with N3.68 trillion, and Aradel Holdings with N2.17 trillion. MTN Nigeria’s equity is N930.61 billion, BUA Cement’s is N659.13 billion, and United Capital’s is N187.09 billion. Dangote Sugar has N170.36 billion in equity, AIICO Insurance N109.15 billion, VFD Group N104.73 billion, and Nestlé Nigeria N77.56 billion. UACN’s equity is N75.71 billion, TotalEnergies Marketing Nigeria N52.49 billion, C&I Leasing N49.5 billion, Conoil N44.39 billion, Mecure Industries N22.02 billion, Infinity Trust Mortgage Bank N12.47 billion, Abbey Bank N10.88 billion, Fortis Global Insurance N6.44 billion, Tantalizers N4.76 billion, and Neimeth N2.84 billion.

FTN Cocoa’s equity is N783.65 million. SCOA Nigeria, as mentioned, has negative equity of N563.76 million – a sign that more money is owed than is owned.