Job losses loom as N3.9trn debt may cripple 22 firms

A wide disparity has emerged in the ability of companies listed on the Nigerian Exchange Limited (NGX) to cover their debt obligations with cash, with some firms holding several times more cash than debt.

Vanguard reports that data covering 40 listed companies in the second quarter of 2026 showed combined debt of ₦3.9tn, with 18 firms recording cash/debt ratios of at least 1.0 times, while 22 had ratios below 1.0.

HBM Nigeria recorded the highest ratio at 319.07 times, with ₦393.68bn cash against ₦1.23bn debt. UPDC Real Estate Investment Trust followed with 283.73 times, while eTranzact International recorded 214.89 times.

Other companies with strong cash coverage included Unilever Nigeria at 44.8 times, Berger Paints at 18.4 times and NASCON Allied Industries at 12.72 times.

At the other end, Caverton Offshore Support Group had the lowest ratio at 0.03 times, with ₦2.46bn cash against ₦87.15bn debt. Chellarams recorded 0.05 times, while C & I Leasing had 0.07.

Analysts said the ratio offers investors insight into liquidity and refinancing risks, but cautioned that high cash holdings do not automatically indicate stronger profitability or management efficiency.