May & Baker’s debt declines 48% amid five-year plan
July 24, 2026 12:12 am
May & Baker Nigeria Plc has disclosed plans to roll out a new five-year strategic plan to drive its next phase of business expansion, even as the company’s latest financial statements show a 47.7 per cent reduction in borrowings.
An analysis of the company’s unaudited financial statements for the first quarter of 2026 by The PUNCH showed that May & Baker’s total group borrowings fell from N7.97bn in March 2025 to N5.60bn by December 2025, a decline of N2.37bn, or 29.7 per cent.
Borrowings dropped further to N4.17bn by March 2026, down another N1.43bn, or 25.5 per cent, from the December 2025 figure, bringing the total year-on-year reduction to N3.80bn, or 47.7 per cent.
The debt reduction came even as other line items on the company’s balance sheet expanded. Cash and cash equivalents rose from N5.08bn in March 2025 to N7.91bn in March 2026, an increase of 55.8 per cent, while total equity grew from N11.04bn to N14.93bn, up 35.2 per cent, over the same period.
Property, plant and equipment also rose from N6.01bn to N7.46bn, an increase of 24.1 per cent, indicating that the company continued to invest in fixed assets despite the falling debt profile.
In an exclusive interview with The PUNCH, May & Baker’s Managing Director/Chief Executive Officer, Pharm. Patrick Ajah, said the reduction in borrowings reflected disciplined financial management rather than a slowdown in investment.
“The reduction in the company’s borrowings reflects our disciplined financial management and adherence to our loan repayment obligations,” Ajah said.
He explained that the company’s loans were largely intervention facilities from the Central Bank of Nigeria and the Bank of Industry, which carried more favourable terms than conventional commercial bank loans, and that the absence of new borrowings had allowed the outstanding balance to decline naturally.
“Our borrowings are largely intervention facilities from the CBN and the Bank of Industry, which offer more favourable terms than conventional commercial bank loans. These facilities were obtained to support strategic business needs and come with defined repayment schedules.
“We have consistently met our repayment obligations as they fall due, and since we have not taken on any new borrowings in recent periods, the outstanding loan balance has naturally declined over successive reporting periods,” Pharm. Ajah said.
Ajah dismissed claims the falling debt figures signalled reduced ambition, disclosing that the company was developing a new five-year strategic plan to support its next phase of growth.
“No, the reduction in borrowings does not indicate a slowdown in our investment drive. Rather, it reflects our prudent approach to capital management. May & Baker remains committed to its long-term growth strategy and is currently developing a new five-year strategic plan to drive the next phase of business expansion,” Ajah maintained.
He added that the company’s future expansion would be financed through a mix of internal resources and market instruments rather than conventional bank debt.
“Going forward, our growth initiatives will be funded through a balanced mix of internally generated funds, commercial paper, and, where appropriate, additional intervention funding. This approach underscores our commitment to sustainable growth while maintaining a healthy financial position,” Ajah added.
May & Baker’s reduction in borrowings contrasts with the debt trajectory of some of its pharmaceutical industry peers. For instance, Fidson Healthcare Plc’s short-term borrowings and bank overdraft increased by 124.4 per cent, rising from N10.42bn in December 2025 to N23.37bn in March 2026.
Morison Industries Plc’s borrowings also edged up slightly, from N193.32m to N198.18m, a rise of 2.5 per cent, over the same period.
MeCure Industries Plc, however, followed a trend closer to May & Baker’s. The company’s combined working capital and term loans fell from N27.56bn in December 2025 to N26.20bn in March 2026, a decline of 5.0 per cent, while its outstanding commercial paper also dropped from N26.03bn to N24.87bn, down 4.5 per cent.
MeCure’s bank overdraft, however, rose from N1.74bn to N2.10bn, an increase of 21.1 per cent, within the same period.
Arinze Nwafor is a journalist at Punch Newspapers with five years of experience reporting on Nigeria’s economy, industry, data, metro, and judiciary. He focuses on highlighting growth, policy, and market challenges shaping Africa’s largest economy. Arinze’s reporting reflects practical newsroom experience, editorial judgment, and a strong commitment to accurate, informative, and audience-focused journalism.
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