Consumer goods firms cut borrowing costs as interest burden falls 26%

Nigeria’s consumer goods firms are now spending less to finance their loans, as borrowing costs falls to its lowest level in three years, BusinessDay analysis has shown.

An analysis of the first half of 2026 financial performance of nine consumer goods companies shows that combined interest expense on borrowings fell by 25.8 percent to N77.64 billion from N104.78 billion in H1 2025, representing a decline of roughly N27.14 billion, or 25.9 percent.

Similarly, the companies’ compiled loans and borrowings during the period also fell by 32 percent to N832 billion from N1.1 trillion reported during the period.

While companies such as BUA Foods, Cadbury Nigeria, Unilever Nigeria, Nascon Allied Industries Plc, International Breweries, and Nigerian Breweries recorded significant reductions in borrowing costs, Champion Breweries, Nestlé Nigeria, and Dangote Sugar Refinery saw their interest expenses increase.

According to the World Bank, countries with stronger disclosure requirements, such as audited financial statements and transparent ownership structures, tend to have lower corporate borrowing costs, as more companies are able to access bond markets.

BUA Foods leads debt-cost reduction

Among the companies, BUA Foods recorded one of the strongest improvements in financing costs.

The company’s interest expense on borrowings fell from N10.1 billion in H1 2025 to N5.27 billion in H1 2026, representing a reduction of approximately N4.83 billion, or 47.8 percent.

The decline suggests a substantial easing in the cost of financing for the food manufacturer and represents one of the clearest improvements among the companies analysed.

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