Listed pharmaceutical companies in Nigeria reported a 46.5% increase in combined finance costs during the first quarter of 2026, driven by persistently high interest rates and expanding credit lines.
The surge in borrowing expenses underscores the mounting pressure on corporate balance sheets across the West African market as monetary conditions remain tight.
The data, highlighted by local media reports, points to a broader trend of elevated financing costs affecting capital-intensive sectors.
For investors tracking Nigerian equities, the spike in interest expenses signals potential margin compression for firms relying on debt to fund operations or expansion.
The impact is particularly acute for companies like May & Baker and Morison, which are among the key listed entities in the sector.
This development aligns with a global backdrop of sticky borrowing costs.