As of December 2024, eight Nigerian companies have seen an increase in their liabilities, reaching a total of N8.67tn. This marks a rise in debt levels, driven by both non-current and current liabilities across several sectors, The PUNCH reports.

Current liabilities are a company’s short-term financial obligations that are due within one year or within a normal operating cycle.

Non-current liabilities, also known as long-term liabilities, are a company’s obligations not coming due for more than one year.

According to the financial statements filed by the companies with the Nigerian Exchange recently for the year 2024, Oando Plc tops the list with a 164.95 per cent increase, from N2.94tn in 2023 to N7.78tn in total liabilities, representing a portion of the company’s corporate debt. The company’s liabilities include N1.22tn in non-current liabilities, which encompass borrowings, deferred income tax liabilities, decommissioning provisions, and retirement benefit obligations. Current liabilities, primarily driven by trade payables and borrowings, contribute to N6.56tn.

Following Oando, Bua Foods posted a 23.5 per cent decrease in its total liabilities, which dropped from N808.38bn in 2023 to N618.87bn in 2024. The breakdown includes non-current liabilities such as deferred tax liabilities of N22.31bn, borrowings of N724.12bn, and current liabilities, which include borrowings of N316.26bn and trade payables of N116.2bn.

Honeywell Flour Mills saw an 8.0 per cent increase in liabilities, climbing from N126.11bn in 2023 to N136.21bn in 2024.

The majority of this figure is made up of current liabilities, including trade payables (N92.34bn) and borrowings (N7.67bn). Non-current liabilities, consisting mainly of borrowings and deferred tax liabilities, account for a smaller portion of the company’s total debt.

https://punchng.com/eight-listed-companies-incur-n8-67tn-debt-report/