Nigeria’s largest listed companies recorded stronger profits and operating cash flow in the first half of 2026, although rising customer debts remain a working-capital concern.
An analysis of the financial statements of 18 companies among the NGX 30 showed that combined profit after tax rose 44.4 percent to ₦3.02 trillion in H1 2026, from ₦2.09 trillion in the same period of 2025.
Operating cash flow also increased by 60.1 percent, rising from ₦3.52 trillion to ₦5.64 trillion during the period.
The companies reviewed include Dangote Cement, MTN Nigeria, BUA Foods, BUA Cement, Seplat Energy, Aradel Holdings, HBM Nigeria, Transcorp Hotel, Presco, Nigerian Breweries, Nestlé Nigeria, Geregu Power, International Breweries, Transcorp Power, Okomu Oil, Dangote Sugar Refinery, Unilever Nigeria and Nascon Allied Industries.
Their combined revenue increased by 31.1 percent, from about ₦11.93 trillion in H1 2025 to ₦15.63 trillion in H1 2026.
Despite the stronger earnings and cash generation, trade receivables also increased sharply, showing that a significant amount of reported sales remained unpaid by customers.
Trade receivables rose 80.3 percent to ₦4.83 trillion from ₦2.68 trillion a year earlier.
The increase means companies are recognising more sales while waiting longer for some customers to settle their obligations. Rising receivables do not automatically indicate financial distress, as they can also result from higher sales, longer payment periods or changes in pricing.
However, the situation becomes more important when customer debts grow faster than revenue and operating cash flow.
Aradel Holdings recorded the largest increase in receivables, rising from ₦41.64 billion in H1 2025 to ₦2.51 trillion in H1 2026. Its revenue also increased significantly, from ₦368 billion to ₦2.49 trillion.
MTN Nigeria’s receivables increased 37.7 percent to ₦369.52 billion, while its revenue rose 25.9 percent to ₦2.99 trillion.
BUA Foods’ receivables more than doubled to ₦42.99 billion even as its revenue declined 16.2 percent to ₦765 billion.
At Geregu Power, trade receivables stood at ₦106.8 billion compared with H1 revenue of ₦19 billion. Transcorp Hotel also recorded ₦46.3 billion in receivables against revenue of ₦44 billion.
Analysts say the key issue for companies is how quickly they can convert reported sales into actual cash.
Asalu Adegboyega Yinka, a stock market analyst, explained that receivables represent amounts owed by customers for goods or services already supplied on credit.
Kehinde Jones, head of research and strategy at Anchoria Capital Group, said rising receivables should not automatically be viewed negatively but become more concerning when they materially outpace sales without a corresponding increase in cash collections.
“The key question is how quickly and reliably the company can convert customer debt into cash,” Jones said.
He advised investors to monitor indicators such as receivable days, operating cash flow, receivables ageing, impairment provisions and overall working capital.
Abiodun Ogunniyi, head of research at GTI, similarly said investors should look beyond the size of receivables and focus on how quickly they are converted into cash.
“The key question is not simply ‘How much are receivables?’ but ‘How quickly are they being converted into cash?’” he said.
While the aggregate figures show stronger profitability and cash generation among the companies reviewed, the rise in receivables highlights the importance of cash conversion as businesses manage their working capital.
(Business Day)
