Nigeria’s major fast-moving consumer goods (FMCG) companies recorded mixed changes in financing costs in the first half of 2026, with some leading manufacturers reporting significant reductions while others faced higher costs despite stronger earnings.
An analysis of the H1 2026 financial statements of Nestlé Nigeria, NASCON Allied Industries, Nigerian Breweries, Dangote Sugar Refinery, Guinness Nigeria, International Breweries and Champion Breweries shows that financing pressure eased at several companies, although the improvement was not uniform.
Guinness Nigeria recorded one of the sharpest reductions. Its results for the six months ended 30 June 2026 showed finance costs falling to about ₦4.36 billion, from ₦12.44 billion a year earlier. Finance income rose to about ₦1.18 billion, while profit after tax increased by 53.3 per cent to ₦25.30 billion.
Nigerian Breweries also substantially reduced its financing burden. According to its H1 2026 results, finance costs fell to about ₦10.16 billion, from ₦20.51 billion in the corresponding period of 2025. The brewer also reported that loans and borrowings had been eliminated by the end of June 2026, supporting a stronger balance sheet.
For NASCON Allied Industries, finance costs fell by about 58.5 per cent to ₦171.6 million, according to its H1 financial disclosures. The company also benefited from higher finance income, which strengthened its bottom line.
Dangote Sugar Refinery reported finance costs of about ₦50.42 billion, down from ₦64.97 billion in H1 2025. The company also completed a major capital-raising exercise. Its ₦485.88 billion rights issue was fully allotted after investors applied for shares worth about ₦498.57 billion. The company said the proceeds would support its balance sheet, expansion and deleveraging.
The trend, however, was not shared by all the companies. International Breweries reported finance costs of about ₦7.05 billion, up from ₦3.90 billion, although finance income of about ₦11.96 billion provided significant support.
Champion Breweries also recorded a sharp increase in finance costs, reaching about ₦4.91 billion, compared with ₦543.7 million a year earlier.
Nestlé Nigeria similarly recorded higher gross finance costs but benefited substantially from increased finance income, reducing the impact on its overall earnings.
The H1 results therefore point to uneven easing of financing pressure rather than a sector-wide debt reduction. Companies with stronger cash generation, lower borrowings or fresh equity were better positioned to manage financing costs, while others remained exposed to the cost of funding and their individual balance-sheet structures.
