Na big news dey for Nigeria business world today as two major tins happen. One na say Kuda Bank, one of Nigeria digital banks wey dey popular, don sack hundreds of workers across different departments for inside their company. The second news na say big FMCG companies for Nigeria don reduce their debt by 28% for 2025, from N1.66 trillion wey dem borrow for 2024 come down to N1.20 trillion. This one show say companies dey try make dem no borrow too much money again.
For Kuda Bank side, sources wey know wetin dey happen talk say the company don lay off plenty staff as part of restructuring move. The affected workers dem don get notification through video call with senior executives. The sack affect many departments, but especially marketing team suffer am pass. At least 19 out of 40 marketing staff lose their work.
Kuda Bank don release statement to explain why dem take this decision. Dem talk say na to reposition the company for next phase of growth. “Kuda is evolving how the organisation is structured to support the next phase of our growth and scale,” company spokesperson talk. Dem emphasize say this decision no be because of financial pressure, but na part of natural evolution of company at their stage.
The company don promise say dem go give affected workers enhanced severance packages and transition support. But this enhanced payment get condition wey include say workers must sign agreement not to pursue any claims against Kuda Bank. Some workers fit collect up to seven months pay as severance, but everything depend on their role and how long dem work for the company.
For financial side, Kuda Bank don show improvement for their losses. For 2024, their losses reduce to $5.83 million from $35.11 million wey dem record for 2023. This one na 84% reduction. Staff costs drop by 46% to $6.31 million, while other operating expenses fall by 61% to $17.12 million. But group revenue still decline by 15% in dollar terms because of currency volatility.
Kuda Bank still dey push forward with their plans. Dem aim to grow monthly active users to 1.7 million by 2026. Registered users already rise to 7 million for 2024. Customer deposits fall small from N96 billion to N83.2 billion.
For FMCG companies side, the debt reduction na major development. According to Nairametrics analysis of 2025 audited financial statements, eight FMCG companies wey dey quoted on Nigerian Exchange (NGX) don cut their borrowings. This debt reduction come amid sustained cost pressures and high-interest-rate environment wey dey for Nigeria.
Nestlé Nigeria Plc, wey get the largest borrowing, still dominate the landscape. Dem get interest-bearing loans totaling N653.70 billion as at January 2025. But by December 31, 2025, their loans don drop to N476.04 billion. The bulk of Nestle debt na intercompany loan.
Other companies wey cut their debt include Nigerian Breweries Plc wey reduce their debt sharply from N209.05 billion in 2024 to N59.71 billion in 2025. This one na one of the most aggressive balance sheet adjustments for the sector. Guinness Nigeria Plc report outstanding loans of N36.83 billion as of December 31, 2025, down from N40.13 billion in 2024.
Unilever Nigeria Plc, Honeywell Flour Mills, and Vitafoam Nigeria also trim their borrowings. Unilever debt reduce to N2.2 billion, Honeywell Flour Mills to N26.97 billion, and Vitafoam Nigeria to N7.04 billion. But PZ Cussons increase their debt to N71.26 billion from N64.33 billion in 2024.
The debt reduction don help these companies reduce their interest expenses. Nestle Nigeria interest expenses moderate at N90.58 billion in 2025, down from N101.76 billion in 2024. Unilever book N134.763 million in interest expense for 2025, lower than N200.587 million for 2024. Guinness Nigeria Plc see their net finance costs decline by about 79%, from N99.1 billion in 2024 to N20.87 billion in 2025.
Financial experts attribute this deleveraging trend to lessons learned during financial strain wey companies experience between 2023 and 2024. Mr. Charles Fakrogha, Managing Director and Chief Executive Officer of ECL Assets Management Limited talk say: “This trend reflects a conscious effort to operate more efficiently and sustainably. Companies experienced significant financial pressure in 2023 and 2024, particularly due to foreign exchange volatility and high borrowing costs.”
Mr. Aruna Kebira, Chief Executive of Globalview Capital Limited add say: “Reducing debt improves the overall health of companies. When interest obligations decline, the ‘drain’ on earnings is removed, allowing companies to retain more value internally.”
The corporate debt crisis for Nigeria between 2023 and 2024 was largely triggered by foreign exchange reforms introduced by Central Bank of Nigeria. This one lead to sharp devaluation of naira. Companies with significant foreign currency obligations see their debt burdens increase dramatically as weaker naira inflate liabilities.
Several quoted firms record massive foreign exchange losses and rising finance costs during that period. Borrowings, particularly dollar-denominated loans, become significantly more expensive to service due to currency depreciation and higher interest rates. Some companies slip into losses despite strong operating performance, as finance costs erode earnings.
The challenging environment force firms, especially in FMCG sector, to rethink their capital structures and reduce exposure to foreign debt. This experience don drive the current wave of deleveraging in 2025, as companies prioritize balance sheet strength, reduce reliance on costly borrowings, and position themselves for more sustainable growth.
For startup ecosystem, Kuda Bank no be the only company wey dey cut jobs. Vendease, food procurement startup, cut about 120 employees in 2025 to extend their runway amid rising costs. Crypto startup Zap Africa also reduce their workforce by about 44% between late 2025 and early 2026 as dem shift toward leaner, automation-driven model.
In other appointment news, Kuda Villingili Resort Maldives don promote Krisztina Vaszjunyina to resort manager. She don dey with the resort since 2021, join as director of rooms and later serve as director of operations. She get more than 15 years of experience, including roles at Cheval Blanc Randheli and Anassa Hotel.
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