Nigerian listed companies recorded a massive surge in finance income during the first half of 2026, capitalizing on the high-interest-rate environment. A review of 19 listed companies with positive growth showed their collective finance income reached N179.5 billion, up from N65.6 billion in the corresponding period of 2025. Across a broader sample of all reviewed companies, total finance income exceeded N200 billion.
This income was primarily generated from fixed-income securities, including treasury bills, Federal Government of Nigeria (FGN) bonds, short-term bank deposits, and money market placements. These instruments have offered elevated yields as the central bank maintains tight monetary conditions.
Corporate Earners Capitalize on Yields
MTN Nigeria emerged as the largest single earner, recording N46.8 billion in finance income. The telecommunications giant holds N874 billion in liquid assets, which includes N459 billion in cash and short-term deposits alongside N415 billion in treasury bills and FGN bonds. During the half-year, MTN executed a net purchase of N240 billion in government debt instruments.
Dangote Cement collected N14.8 billion in interest income as its cash position doubled from N397.6 billion in December 2025 to N796.3 billion in June 2026. This cash balance includes N216.4 billion held in short-term bank deposits. Meanwhile, Julius Berger Nigeria posted N9 billion in gross finance income, outperforming its profit after tax of N6.1 billion.
Presco also generated N9 billion in finance income, while NASCON Allied Industries more than doubled its finance income to N5.3 billion. Seplat Energy reported a 10.3% increase in finance income to $9.1 million, up from $8.3 million in the previous year. However, BUA Cement saw its finance income drop from N18.7 billion to N7.5 billion, and Oando recorded a decline of N6.1 billion, reflecting the heavy finance costs borne by leveraged firms.
Monetary Policy and Credit Concerns
The surge in corporate finance income is directly linked to the Central Bank of Nigeria's aggressive monetary tightening. The Monetary Policy Rate stands at 27.5%, a policy response designed to anchor price expectations after inflation peaked above 34% in 2024. Consequently, 91-day treasury bills are yielding over 20%, while corporate deposit rates range between 18% and 22% depending on the tenor.
While cash-rich firms benefit, the manufacturing sector has raised concerns over the high-rate environment. Segun Ajayi-Kadir, the Director General of the Manufacturers Association of Nigeria (MAN), stated that the current rate limits credit flow to the sector. He urged the central bank to reduce the MPR below 20% to improve credit access, noting that manufacturers are struggling with the 26.5% rate.
Cash Balances and Sector Performance
Total cash and short-term deposits for 35 reviewed companies grew by N437 billion to N5.41 trillion between December 2025 and June 2026, representing an 8.8% increase. BUA Foods deployed N103 billion into new short-term investments during the period, having held none on its balance sheet in December 2025. Conversely, Nestle Nigeria's cash fell 84% from N35.3 billion to N5.6 billion, as its reported finance income included non-cash foreign exchange translation gains on euro-denominated intercompany liabilities.
The broader market showed varied but generally positive trading results. The cement sector led with Dangote Cement and BUA Cement recording a combined revenue of N3.92 trillion, up 23.7% year-on-year, while combined pre-tax profit rose 47.1% to N1.68 trillion. Consumer goods companies posted a combined revenue of N2.09 trillion, down 3.9%, but pre-tax profit rose 43% to N556.3 billion, aided by finance income.
MTN Nigeria reported revenue of N2.99 trillion, up 25.9% for the half-year. The three listed breweries recorded a combined revenue of N1.41 trillion and a pre-tax profit of N269.4 billion. In agribusiness, Presco, Okomu Oil, and HBM Nigeria saw combined revenue rise 59% to N198.8 billion, while their combined pre-tax profit more than doubled to N122.2 billion.
