Nestlé Nigeria Plc and Unilever Nigeria Plc’s combined intercompany loans rose to $316.615 million in 2025, underscoring their growing reliance on foreign-currency funding to sustain operations and capital investments.

The disclosures were contained in the companies’ financial statements for the year ended December 31, 2025, filed with the Nigerian Exchange (NGX) Limited.

The figures highlight increasing exposure to dollar-denominated liabilities amid a challenging macroeconomic environment and foreign exchange constraints.

Nestlé Nigeria Plc accounted for the bulk of the loans with $315 million sourced from its parent, Nestlé S.A., while Unilever Nigeria Plc recorded $1.615 million borrowed under a sustainability-linked arrangement.

The structure and scale of these obligations reflect long-term financing strategies but also raise concerns around currency risks and rising global interest rates.

Loan Details and Maturities

Nestlé Nigeria’s loan exposure is spread across multiple tranches obtained between 2020 and 2023, with varying maturities and interest margins. The company’s debt profile indicates sustained borrowing to navigate operational and capital expenditure demands.

• The largest share comes from two $100 million facilities secured in 2020, both with seven-year tenors; one remains fully outstanding and matures in May 2027, while the other has been reduced to $40 million and matures in November 2027.
• In 2022, the company secured an additional $100 million through two $50 million facilities, both fully outstanding and due in October and December 2029, respectively.
• A further $80 million facility was obtained in 2023, with $75 million drawn as of year-end and maturing in July 2030.

These facilities carry relatively high interest margins, reflecting tighter global financial conditions at the time they were issued.

Unilever Nigeria's Sustainability-Linked Loan

Unilever Nigeria’s borrowing, though significantly smaller, is structured differently and tied to sustainability outcomes. The loan reflects a collaborative financing approach aimed at supporting environmental initiatives.