Nigerian Companies Earn N179.5bn from T-Bills, Bank Placements in H1 2026

Listed Nigerian Companies Earn N179.5bn from Finance Income in H1 2026

Nigerian listed companies generated N179.5 billion in finance income during the first half of 2026, a 174% increase from N65.6 billion recorded in the same period of 2025, as businesses continued to deploy surplus cash into treasury bills, government bonds, bank deposits and other money-market instruments.

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The figure comes from a review of the H1 2026 financial statements of 19 listed companies that reported positive growth in finance income. Across the wider group of companies reviewed, total finance income exceeded N200 billion.

High interest rates boost corporate finance income

The increase reflects the continued high-interest-rate environment in Nigeria, which has made fixed-income instruments more attractive to companies with significant cash balances.

The 91-day Treasury bill yield remained above 20%, while longer-dated Federal Government bonds offered comparable or higher returns during the period. Corporate deposits also generated interest rates generally ranging between 18% and 22%, depending on the tenor and amount involved.

The Central Bank of Nigeria’s Monetary Policy Rate stood at 27.5%, maintaining relatively high returns on naira-denominated financial assets.

For cash-rich companies, placing surplus funds in relatively low-risk instruments provides an additional source of income while those funds are not required for immediate operational or capital expenditure.

MTN Nigeria records highest finance income

MTN Nigeria recorded the highest finance income among the companies reviewed, generating N46.8 billion during H1 2026.

The telecommunications company held a combined liquid asset position of N874 billion as of June 2026, comprising N459 billion in cash and short-term deposits and N415 billion in separately classified Treasury bills and Federal Government bonds.

MTN also purchased a net N240 billion in government bonds and Treasury bills during the six-month period.

The figures demonstrate how large companies with substantial liquidity can benefit from elevated interest rates by allocating surplus cash to fixed-income investments.

Dangote Cement doubles cash position

Dangote Cement generated N14.8 billion in interest income during the first half of the year.

Its cash position increased from N397.6 billion in December 2025 to N796.3 billion in June 2026. The balance included N216.4 billion in short-term bank deposits.

The company’s performance illustrates the growing importance of treasury management for large corporates operating in a high-rate environment.

Julius Berger Nigeria and Presco each recorded N9 billion in gross finance income, while NASCON Allied Industries more than doubled its finance income to N5.3 billion.

Seplat Energy recorded $9.1 million in finance income, up from $8.3 million a year earlier.

Not all companies benefit from high interest rates

The high-interest-rate environment has produced different outcomes for companies depending on their balance-sheet structure.

BUA Cement’s finance income declined from N18.7 billion to N7.5 billion, while Oando’s finance income fell by N6.1 billion.

Companies with substantial borrowings face the opposite effect because higher interest rates increase finance costs and raise the cost of working capital and project financing.

This distinction is particularly relevant for capital-intensive sectors such as manufacturing, construction and infrastructure, where companies often require significant external financing.

Corporate cash holdings rise to N5.41tn

The broader review showed that cash and short-term deposits held by 35 listed companies increased by N437 billion between December 2025 and June 2026 to N5.41 trillion.

That represented an 8.8% increase in aggregate cash holdings.

Several companies increased their short-term investments during the period.

BUA Foods, for instance, placed N103 billion in new short-term investments during H1 2026, compared with no such balance on its December 2025 balance sheet.

MTN Nigeria reduced its reported cash balance by N174 billion but simultaneously moved a net N240 billion into longer-dated government Treasury bills and bonds, increasing its overall liquid asset position.

High rates create mixed implications for businesses

The increase in corporate finance income highlights the advantage that companies with strong cash positions can derive from elevated interest rates.

However, the same environment increases financing costs for businesses that depend heavily on bank loans, corporate debt or other forms of credit.

The Manufacturers Association of Nigeria has previously called for lower interest rates, arguing that the prevailing rate environment is restricting credit access for manufacturers.

The divergence creates a balance-sheet advantage for companies that have accumulated cash while placing pressure on businesses that need external funding to expand.

Implications for investment and real estate

The trend has implications for corporate investment decisions, including real estate and infrastructure.

Companies earning substantial returns from short-term financial instruments may have greater incentives to retain surplus liquidity in Treasury bills, bonds and bank placements while yields remain attractive.

This can affect the timing of capital-intensive investments, including factory expansion, office development, logistics facilities and other property-related projects.

At the same time, companies with strong cash positions can deploy accumulated liquidity into expansion when the expected return on productive investment becomes more attractive relative to financial assets.

For the construction and real estate sectors, the direction of interest rates therefore remains important. Lower borrowing costs could encourage more companies to redirect capital towards physical expansion and development projects, while sustained high yields can make short-term financial investments comparatively attractive.

Finance income supplements operating performance

The H1 figures also show that finance income has become an important contributor to corporate earnings for some listed companies.

In the cement sector, Dangote Cement and BUA Cement recorded combined revenue of N3.92 trillion, up 23.7% year on year, while their combined pre-tax profit rose 47.1% to N1.68 trillion.

Consumer goods companies recorded combined revenue of N2.09 trillion, down 3.9%, but combined pre-tax profit increased 43% to N556.3 billion, with finance income contributing to earnings.

The data reinforces the importance of looking beyond operating revenue when assessing corporate performance in a high-yield environment.

Outlook

The N179.5 billion finance income recorded by the 19 listed companies reflects the significant impact of Nigeria’s high interest rates on corporate treasury strategies.

Companies with substantial cash reserves are benefiting from attractive yields on government securities and bank placements, while highly leveraged businesses continue to face elevated financing costs.

For investors, the trend highlights the importance of examining both operating performance and balance-sheet strength. For the property and construction sectors, the eventual easing of borrowing costs could determine whether more corporate liquidity moves from financial assets into productive investments and physical infrastructure.

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