October 19, (THEWILL) – Seven of Nigeria’s biggest listed companies committed more than N3.9 trillion to capital expenditure across 2025 and the first half of 2026, as businesses in telecommunications, cement, oil and gas, and brewing invested in infrastructure, production capacity and operational efficiency.
The investment estimate comprises more than N2.5 trillion spent in 2025 and a further N1.4 trillion in the first six months of 2026. The companies are MTN Nigeria, Dangote Cement, BUA Cement, HBM Nigeria, Seplat Energy, International Breweries and Nigerian Breweries.
Their latest financial results show mixed but generally encouraging evidence of returns, including higher profits, stronger operating cash flow, improved production and reduced debt. However, the figures do not establish that capital expenditure alone drove the improvements, while differences in how companies report investment mean the aggregate should be treated as an estimate rather than a uniform measure of cash paid.
MTN Nigeria accounted for the largest investment commitment among the seven companies, recording N1.003 trillion in capital expenditure in 2025 and a further N620.5 billion in the first half of 2026, excluding right-of-use assets.
The spending coincided with stronger earnings. Revenue rose 25.9 percent to approximately N3 trillion in the first half, while earnings before interest, taxes, depreciation and amortisation increased 39.2 percent to N1.7 trillion. Profit after tax climbed 70.6 percent to N707.5 billion, while free cash flow rose 73.9 percent to N712.7 billion.
The company also reported 92.2 million subscribers, an increase of 8.9 percent, and 55.7 million data users, up 9.3 percent. Its interim dividend stood at N26 per share.
MTN’s results provide evidence of stronger cash generation alongside sustained network investment. The critical test is whether that spending continues to support subscriber growth, data usage, network quality and profitability without weakening cash flow.
In the cement industry, Dangote Cement recorded N354.17 billion in accrued capital expenditure in the first half of 2026. This comprised N314.17 billion in Nigeria and N40 billion across its Pan-African operations. Cash paid for property, plant and equipment, however, was N130.7 billion, highlighting the distinction between investment recognised in financial statements and cash actually disbursed.
The company generated N1.06 trillion in operating cash flow, while free cash flow stood at N702.04 billion. Its cash balance increased to N796.28 billion from N397.57 billion at the end of 2025, while borrowings declined to N581.04 billion from N1.08 trillion. Dangote Cement moved from a net-debt position of N682.92 billion to net cash of N215.24 billion.
These figures suggest that the company is funding a substantial investment programme while improving its financial position. Nevertheless, accrued expenditure, supplier financing and the timing of cash payments remain important when assessing the programme’s full financing requirements.
BUA Cement invested N60.67 billion in capital expenditure in the first half, an increase of 285.11 percent. Operating cash flow rose 85.37 percent to N278.45 billion, while free cash flow increased 61.96 percent to N217.78 billion.
The company also recorded N233.27 billion in new borrowings and paid N338.64 billion in dividends, equivalent to 1.04 times its first-half profit after tax. Its ability to sustain expansion while meeting financing and shareholder obligations will depend on future earnings, cash generation and the returns delivered by additional capacity.
HBM Nigeria, formerly Lafarge Africa, recorded N141.47 billion in capital expenditure during the first half of 2026, with construction work-in-progress at approximately N184 billion. The company also disclosed a separate $250 million expansion programme.
Revenue increased 31 percent year on year, sales volumes rose 11 percent, and operating profit climbed 51 percent to N291 billion. Profit after tax increased 57 percent to N208 billion, while profit margin expanded to 43 percent from 37 percent.
The simultaneous increase in volumes and earnings provides a positive operating signal. However, the contribution of new capacity will depend on project completion, commissioning, and the extent to which additional output can be sold profitably.
Seplat Energy spent $109.8 million on capital expenditure in the first half, equivalent to approximately N151.5 billion at the exchange rate used in the investment estimate. Its full-year capital expenditure guidance stood at $360 million to $440 million, indicating that a significant portion of the planned investment was scheduled for the second half.
Revenue increased 30 percent to $1.82 billion, while earnings before interest, taxes, depreciation and amortisation rose 28 percent to $939 million. Net income climbed to $164 million from $27.4 million in the corresponding period of 2025. Cash generated from operations increased 29 percent to $985.9 million, while net debt fell 45 percent to $370.7 million from the end-2025 level.
Seplat’s results point to improved earnings and a stronger balance sheet. The full-year figures will show whether its investment programme delivers the expected production gains and whether the additional spending can be sustained from operating cash flow.
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The brewing companies present a more mixed picture. International Breweries invested N56.2 billion in the first half of 2026. Revenue increased 0.32 percent to N342.07 billion, gross profit rose 16.21 percent to N141.29 billion and operating profit climbed 24.66 percent to N69.88 billion. However, profit after tax declined 7.21 percent to N38.31 billion.
The divergence between operating profit and net profit indicates that stronger operating performance did not fully translate into bottom-line growth. The sustainability of its investment programme will depend on improving sales, protecting margins and controlling costs below the operating-profit line.
Nigerian Breweries recorded N30.3 billion in capital expenditure during the period. Revenue rose 8.88 percent to N803.68 billion, profit before tax increased 18.21 percent to N156.33 billion and profit after tax grew 5.13 percent to N92.96 billion.
The company also reported N73 billion in net free operating cash flow and said it had fully repaid its outstanding loans. These results point to improving financial flexibility, although future investment returns must be assessed alongside demand growth, margins and the company’s ability to maintain positive cash flow.
Across the seven companies, stronger earnings and cash generation provide evidence that several businesses are in a better position to fund expansion. But the N3.9 trillion estimate combines different reporting periods and investment measures, including accrued expenditure and cash capital expenditure. Seplat’s dollar-denominated spending is also converted into naira for aggregation.
The decisive measures of success will be incremental production and sales, improved productivity, sustainable margins, free cash flow and the capacity to finance growth without excessive borrowing or compromising shareholder returns.
The 2026 full-year results, expected in early 2027, should provide a clearer assessment of the investment programmes. For now, the evidence points to progress at MTN Nigeria, Dangote Cement, BUA Cement, HBM Nigeria, Seplat Energy and Nigerian Breweries, while International Breweries faces a more uneven earnings picture. Whether the collective investment bet pays off will ultimately depend on how effectively the companies convert expanded capacity into sustained earnings and cash flow.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
