By Benson Daniel
Nigerian listed companies generated N179.5 billion in finance income during the first half of 2026, marking a 174 per cent increase from the N65.6 billion recorded in the corresponding period of 2025.
The sharp rise reflects the growing benefits companies with substantial cash reserves are receiving from Nigeria’s high interest rate environment, as businesses increasingly channel surplus funds into Treasury bills, Federal Government bonds, short term bank deposits and other money market instruments.
The figure was derived from the financial statements of 19 listed companies that recorded positive growth in finance income during the six month period. Across the broader group of companies reviewed, total finance income exceeded N200 billion, highlighting the significant contribution of financial investments to corporate earnings during the period.
MTN Nigeria emerged as the largest individual earner, recording N46.8 billion in finance income during the first half of the year. The telecommunications company maintained a combined liquid asset position of N874 billion, comprising N459 billion in cash and short term deposits and N415 billion in Treasury bills and Federal Government bonds.
MTN also increased its exposure to government securities during the period, purchasing a net N240 billion in government bonds and Treasury bills.
Dangote Cement was another major beneficiary of the prevailing interest rate environment, earning N14.8 billion in interest income. Its cash position increased substantially from N397.6 billion in December 2025 to N796.3 billion by June 2026, including N216.4 billion held in short term bank deposits.
Julius Berger Nigeria and Presco each recorded about N9 billion in finance income, while NASCON Allied Industries more than doubled its finance income to N5.3 billion. Seplat Energy also recorded $9.1 million in finance income, representing a 10.3 per cent increase from $8.3 million a year earlier.
However, the high interest rate environment has not benefited all companies equally. BUA Cement’s finance income declined from N18.7 billion to N7.5 billion, while Oando’s finance income fell by N6.1 billion. The contrasting performances demonstrate that companies with significant borrowings can face higher financing costs even as firms with excess cash earn more from investments.
The increase in corporate finance income comes amid a monetary policy environment designed to keep inflation under control and support the attractiveness of naira denominated financial instruments. The Central Bank of Nigeria’s Monetary Policy Rate currently stands at 27.5 per cent, while Treasury bill yields have remained above 20 per cent for some short dated instruments.
For companies with large cash balances, investing surplus funds in government securities and bank deposits has therefore become an important avenue for generating additional income without expanding their core operations. Deposit rates available to companies have also remained relatively high, depending on the size and maturity of the placement.
The trend is reflected in the growing cash holdings of listed companies. The combined cash and short term deposits of 35 companies reviewed increased by N437 billion between December 2025 and June 2026, reaching N5.41 trillion, an 8.8 per cent increase.
BUA Foods, for instance, placed N103 billion in new short term investments during the first half of 2026, compared with no such investment recorded on its balance sheet at the end of 2025.
The rising finance income nevertheless comes with broader implications for Nigeria’s economy. While companies with excess liquidity are benefiting from attractive investment returns, manufacturers and other businesses dependent on bank credit continue to face high borrowing costs.
The Manufacturers Association of Nigeria has consequently called for a reduction in the monetary policy rate to improve access to affordable credit and encourage productive investment.
The figures underscore the increasingly important role of treasury investments and bank placements in corporate earnings. As long as interest rates remain elevated, companies with strong cash positions are likely to continue taking advantage of fixed income opportunities, while highly leveraged businesses may remain under pressure from rising financing costs.
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