…. as corporate debt hits N10.53trn
As the central bank has started cutting borrowing costs, NGX listed companies are reducing debts in their books, a testaments of a healthy balance sheet that makes it easier for them to meet financial obligations.
The average interest coverage ratio for Nigeria companies who are listed on the exchange stood at 15.47 percent in the first nine months of 2026, higher than 2025’s 12.22, according to data gathered by MoneyCentral. The figure is a measure of a company’s ability to repay its debts, with a ratio of at least 2 generally considered the minimum acceptable amount for a company with solid revenues. Analysts typically prefer a coverage ratio of 3 or higher.
The improved financial health of companies that lessens exposure to financial risk comes just as the central bank has adopted a dovish stance, stating easing inflationary pressures as the main reason for the new policy.
The Monetary Policy Committee of the Central Bank of Nigeria has cut the benchmark interest rate by 350 basis points to 23 per cent from 26.5 per cent, as easing inflation and improved foreign exchange conditions created room for the biggest rate adjustment in the current monetary policy cycle.
Headline inflation rate fell by 0.04 percent to 15.39 percent in August from 15.43 percent in July 2026, according to the latest data from the National Bureau of Statistics (NBS).
The yield on Nigeria 10 year bond yield held steady at 16.85 percent on November 6, 2026. Over the past month, the yield has edged up by 0.42 points and is 1.26 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity.
Monetary policy easing helps to reduce the cost of new borrowings easing firms and household financial constraint.
A lower debt costs magnifies profitability which means shareholders will be getting higher dividends.
Non-financial firms total debts reduced by 19.58 percent to N10.58 trillion as at September 2026 from N13.16 trillion as at September 2025, according to data gathered by MoneyCentral.
Nigeria’s commercial paper market raised N1.51 trillion across 131 series from 60 issuers in the first nine months of 2026, with seven CP series valued at N216.1 billion listed on NGX.
Dangote Sugar’s interest coverage ratio stood at 10, which is lower than 2025’s 4. Total debt was down 87.87 percent to N89.31 billion in the period under review from N736.21 billion as at September 2025.
The largest producer of sweetener in Nigeria had raised $356 million in a share sale as it seeks to leverage its balance sheet and bolster capital base.
Dangote Cement’s interest coverage ratio increased to 16, from 5.87 the previous year. Total debts (both short and long-term borrowing) reduced by 31.40 percent to N539.60 billion in September 2026 from N786.61 billion as at September 2025.
MTN Nigeria Communications Plc interest coverage ratio stood at 5.54 in the period under review, from 3.57 as at September 2025. Total debts were down 36.83 percent to N333.32 billion in September 2026 from N527.66 billion as at September 2025.
Seplat Energy ratio improved to 9.78 from 3.04, while Etenal Oil Plc interest coverage ratio increased to 5.81 from 1.63. While Aradel Holding interest coverage ratio stood at 5.02, it is still lower than 2025’s 8.33.
It is important to note that  Oando Plc interest coverage ratio that stood at 0.68 is worrisomely poor as the company is reeling from deteriorating liquidity.
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