Companies with zero-debt are said to have fortress-like balance sheets, which makes them somewhat resistant to macro-economic shocks.
Of course, acquisition decisions come easy for these firms while financial institutions are willing to give them loans due to stronger credit profiles as cash that would have been used to service debts are reinvested in the business for growth and sustainability.
Debt-free firms often exhibit better stock quality and higher dividends, often leading to better market performance.
However, others have argued that zero-debt companies are not utilizing their capital structure for growth.
Zero-debt stocks
-
Lafarge Africa Plc
Lafarge Africa Plc is a Nigeria-based company, which is engaged in the business of manufacturing and marketing of cement and other cementitious products such as ready-mix concrete, aggregates, fly-ash, and others. Its stock is up 68.4 percent year to date (YTD), outperforming the NGXASI index.
For the year ended December 2025, Lafarge Africa’s profit after tax (PAT) surged by 172.73 percent to N273.12 billion, supported by cost savings and favorable weather that helped accelerate construction activities.
Revenue spiked by 52.13 percent to N1.06 trillion in the period under review.
The cement maker’s product diversification strategy, which includes its Ground Calcium Carbonate (GCC) solution and mortar segments, has been pivotal to earnings growth.
Of course, the company’s energy cost management which involves investment in alternative energy has helped buoy gross and net profit margin, making it the stock to invest in.
Lafarge Africa has a favorable leverage position as total assets of N1.20 trillion as at December 2025, is 2.33 times total liabilities, which indicates it is not susceptible to financial or bankruptcy risk.
-
International Breweries Plc
International Breweries Plc is a Nigeria-based brewing company. The principal activities of the Company are brewing, packaging and marketing of beer, alcoholic flavored/non-alcoholic beverages, and soft drinks. It is important to note the company’s shares have gained 0.36 percent since the start of the year, underperforming the NGXASI index.
Despite the sustained pressure on household spending, it reverted to the path of profitability, posting a profit of N63.33 billion as at December 2025, overcoming the foreign exchange revaluation headwinds.
International Breweries is building a war chest of cash to fund its expansion plans. It finished 2025 with no debt and N155.67 billion in cash and cash equivalents on its balance sheet.
 Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
