SCOA Nigeria Plc has recorded a sharp increase in its debt profile, with total liabilities rising to N12.017 billion in 2025.
The figure represents a 115.2 per cent jump compared to the previous year, highlighting a significant rise in borrowing within the period.
Details from the company’s latest financial update show that the increase reflects growing financial obligations tied to its operations and expansion activities.
The development comes despite improvements in other areas of the company’s performance. Earlier reports indicate that SCOA Nigeria experienced strong revenue growth and profit expansion in recent periods, driven largely by increased sales in its automobile and equipment segments.
Speaking on the company’s financial position, management noted that the rise in debt is linked to business growth strategies.
A company representative said the borrowings were “aligned with operational needs and expansion plans,” adding that efforts are ongoing to manage liabilities effectively.
The surge in debt highlights the balance many firms face between growth and financial risk, especially in Nigeria’s evolving economic environment.
Market observers say companies often rely on debt financing to scale operations, but rising obligations could increase pressure on cash flow if not carefully managed.
SCOA Nigeria remains active in key sectors, including vehicle distribution, industrial equipment, and after-sales services, which continue to shape its financial outlook.