FMCG FIRMS SLASH FINANCE COSTS BY 23% IN Q1

Leading fast-moving consumer goods (FMCG) companies in Nigeria have reported a 23 per cent reduction in finance costs during the first quarter of 2026, reflecting improved liquidity management and strategic debt restructuring.

The decline, according to industry reports, was driven by lower interest rates on some facilities, better cash flow from operations, and a shift towards more efficient financing models. Several major players in the sector posted stronger bottom-line figures partly due to the reduced cost of borrowing.

Analysts attribute the positive development to cautious financial management amid a challenging economic environment. “FMCG companies are adapting quickly to high interest rates by optimising their capital structure,” one analyst noted.

The sector remains under pressure from rising raw material costs and weak consumer purchasing power, but the reduction in finance costs provides some relief.

Experts expect the trend to continue if macroeconomic conditions stabilise and companies maintain disciplined financial strategies.