A wide disparity in the ability of companies listed on the Nigerian Exchange Limited, NGX, to cover their debt obligations with cash has emerged, with some companies holding several times more cash than debt, while others have cash covering only a fraction of their outstanding borrowings.

Analysts noted that the cash/debt position of some of the listed companies could affect investment, employment, production and capital-market development.

The available data by covers 40 companies in the second quarter of 2026, showed a combined total debt of 3.9 trillion naira, out of which 18 firms have cash/debt ratios of at least 1.0 times, indicating that their cash holdings are equal to or greater than their total debt, while 22 companies have ratios below 1.0 times, meaning their total debt exceeds cash on hand.

The cash/debt ratio measures a company’s ability to meet its debt obligations using cash available to it. A ratio above 1.0 times generally indicates that a company has sufficient cash to cover its total debt, although the ratio does not, on its own, measure overall financial strength or debt-servicing capacity.

On the table of the cash/debt analysis, HBM Nigeria led, with a cash/debt ratio of 319.07 times, based on cash of 393.68 billion naira and total debt of 1.23 billion naira.

It was followed by UPDC Real Estate Investment Trust, with 283.73 times, from cash of N7.15 billion against debt of only N25.2 million, while eTranzact International recorded 214.89 times, with N23.69 billion cash and N110.24 million debt.

CWG also recorded a high ratio of 211.1 times, with cash of N7.4 billion compared with total debt of N35.06 million.

Other companies with substantial cash coverage included Unilever Nigeria, with a ratio of 44.8 times; Berger Paints, 18.4 times; Industrial & Medical Gases, 13.56 times; and NASCON Allied Industries, 12.72 times.

Companies with stronger cash cover

The available data,  also showed that several major companies had cash exceeding their debt.

Vita foam Nigeria recorded 5.88 times, while UPDC posted 5.47 times. International Breweries had 3.34 times, Sterling Financial Holdings 3.08 times and May & Baker Nigeria 2.83 times.

Livestock Feeds recorded 1.94 times, Julius Berger Nigeria 1.85 times, Chams Holdings 1.65 times and Dangote Cement 1.31 times. Skyway Aviation recorded 1.19 times.

The figures suggest that these companies have, based purely on cash on hand relative to total debt, a degree of liquidity protection against debt obligations.