Lagos, Nigeria – Nestlé Nigeria Plc and Unilever Nigeria Plc’s combined intercompany loans rose to $316.6 million (approximately N494 billion) in 2025, highlighting their growing reliance on foreign-currency funding to sustain operations and capital investments, according to financial statements filed with the Nigerian Exchange.
Okay News reports that Nestlé Nigeria accounted for the bulk of the loans with $315 million sourced from its parent, Nestlé S.A., while Unilever Nigeria recorded $1.6 million borrowed under a sustainability-linked arrangement. Nestlé’s loan exposure is spread across multiple tranches obtained between 2020 and 2023, with maturities ranging from 2027 to 2030.
The largest share comes from two $100 million facilities secured in 2020. One remains fully outstanding and matures in May 2027, while the other has been reduced to $40 million and matures in November 2027. In 2022, the company secured an additional $100 million through two $50 million facilities, both fully outstanding and due in October and December 2029. A further $80 million facility was obtained in 2023, with $75 million drawn as of year-end and maturing in July 2030.
Unilever Nigeria’s borrowing is significantly smaller at $1.6 million and structured differently. In 2023, the company entered into an agreement with Wecyclers Outcomes Partnership Limited to access a loan designed to fund waste recovery and recycling projects. It carries an interest rate of 5 percent per annum, with repayment linked to achieving specified outcomes between 2023 and 2028.
All Nestlé facilities are priced at floating rates tied to the Secured Overnight Financing Rate plus margins, exposing the company to rising global borrowing costs. Unilever employs foreign exchange risk management tools such as funded forwards and letters of credit to hedge its exposures. This foreign currency borrowing reflects differing strategies among multinational subsidiaries operating in Nigeria’s challenging macroeconomic environment.
 in 2025, highlighting their growing reliance on foreign-currency funding to sustain operations and capital investments, according to financial statements filed with the Nigerian Exchange.){kind=link}