Aradel, Seplat Control 97.1% of Nigeria's Listed Oil Cash Despite High Debt
By end of Q1 2026 (March 31), Aradel Holdings and Seplat Energy held N2.24 trillion in cash—97.1% of the N2.31 trillion total cash reported by Nigeria's five listed oil companies. Aradel alone held N1.60 trillion (nearly 70% of sector cash), while Seplat held N640 billion. The remaining N66.1 billion was spread across TotalEnergies Nigeria, Conoil, and Eterna.
Aradel's cash surged from N401.7 billion a year earlier, driven by a N208.9 billion one-off operating gain from acquisitions, though profit after tax rose 252% to N120.3 billion. Seplat's cash rose 24.5% year-on-year to N640 billion, but its profit after tax rose only 48.4% to N52.5 billion despite declining revenue (-5.2%) and weakening operating performance, with higher profits mainly from lower tax charges.
Despite large cash positions, both companies remain highly leveraged: Aradel carries N1.78 trillion debt against N1.60 trillion cash, Seplat has N1.38 trillion debt versus N640 billion cash, leaving them in a combined net debt position of roughly N916 billion. This leverage reflects their capital-intensive expansion post-acquisitions, though operating cash flow remains strong (Aradel: N868.3B, Seplat: N336.9B). With renewed Strait of Hormuz tensions affecting oil prices, their cash-generating capacity and financial flexibility position them to capitalize on favorable markets—but significant debt obligations temper the strength of their liquidity.