Nigerian agribusiness producer Ellah Lakes Plc is facing deteriorating short-term liquidity crises as the company continues a run of recurring operating losses.
The company posted a loss after tax of N1.12 billion in the first nine months of 2026 from a similar loss position of N1.30 billion as at September 2025.
Total operating expenses are 1.77 times(x) total revenue, which validates operational inefficiency as investors confidence wanes on the firm’s future growth prospects.
Ellah Lakes shares closed trading at N7.10 Per Share, near a 52-week low and are trading 62% below its 52 week high of N18.60 reached earlier in the year.
An investor who spoke with MoneyCentral said the owners of Ellah Lakes are not nimble enough to inject cash into the business and that market participants are not impressed with the company’s unhealthy financial position.
Revenue surged by 881.95 percent to N636.77 million, but rising costs have prevented top line (revenue) impressive performance to translate into bottom line (profit) growth.
Ellah lakes faces short-term liquidity crises as it does not have enough cash to settle its suppliers and run day-to-day activities, and perhaps more worrisome is that N14.79 million cash on hand in the balance sheet can’t run operations.
The company’s total current liabilities of N317.54 million exceeds total current assets of N98.61 million, resulting in a negative net working capital of N67.07 million.
The current ratio stood at 0.31x in September 2026 from 9.6x the previous year, based on MoneyCentral calculations. Deteriorating short-term liquidity was heightened by a sharp 99.5% drop in cash and cash equivalent to N14.79 million from N3.05 billion as at December 2025.
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