Nigeria’s oil and gas sector continues to reflect a growing divide in debt management practices among listed firms. While some companies have adopted strategic use of leverage to finance expansion, others remain weighed down by heavy borrowings and weak balance sheets.
Data from the first half of 2025 shows that several key players are operating under significant debt burdens, underscoring the risks of excessive borrowing in a high-interest-rate environment.
Among the industry’s most indebted companies are Oando Plc, Seplat Energy Plc, and Eterna Plc, each representing different approaches to debt utilization and capital structure discipline.
While a few firms have managed to use borrowings to sustain liquidity and fund growth, others are struggling with repayment obligations and declining solvency, highlighting the sector’s uneven financial resilience.
Eterna Plc
Eterna Plc ranks among the most indebted oil and gas companies in Nigeria. As of June 2025, the company reported a current debt of ₦29.28 billion and non-current debt of ₦10.13 billion, totaling ₦39.41 billion in borrowings — a 17.6% year-on-year improvement.
Despite the reduction, Eterna’s balance sheet remains highly leveraged. The company’s cash and cash equivalents stood at only ₦2.45 billion, leaving a net debt position of ₦36.97 billion. This thin liquidity profile exposes the company to refinancing and operational pressures.
Eterna’s debt ratio of 0.63x shows that 63% of its assets are financed by debt, while its debt-to-equity ratio of 11.52x and debt-to-capital ratio of 0.92x underline a capital structure heavily reliant on borrowings. Its debt-to-EBITDA ratio of 12.61x signals limited earnings capacity to cover debt, though an interest coverage ratio of 2.99x indicates that the firm still generates enough operating income to meet short-term interest obligations.
Overall, Eterna’s high gearing and weak liquidity position highlight the need for stronger earnings performance, prudent cost control, and improved debt management strategies to enhance financial stability in the medium term.
| Rank | Company | Total Debt* | Notes & Metrics |
|---|---|---|---|
| 1. Oando Plc | (Highest level) | — | Oando leads the list of most-indebted companies. |
| 2. Seplat Energy Plc | — | Second-largest debt load among the listed oil & gas firms. | |
| 3. Aradel Holdings Plc | — | Third in the ranking of indebted companies. | |
| 4. TotalEnergies Marketing Nigeria Plc | — | Fourth-most indebted listed company in this sector. | |
| 5. Eterna Plc | ₦39.41 billion | Current debt: ₦29.28 billion; non-current debt: ₦10.13 billion. Cash & cash equivalents: ₦2.45 billion → net debt ≈ ₦36.97 billion. Debt ratio: 0.63×; Debt-to-equity: 11.52×; Debt-to-cap: 0.92×; Debt-to-EBITDA: 12.61×; Interest coverage: 2.99×. |
*Only Eterna’s full numeric breakdown was provided in the source.
Key Takeaways
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These five companies reflect very different levels of balance-sheet health: from strategic leveraging to clear solvency pressure.
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While debt can support expansion and liquidity, high gearing and limited earnings cover (especially for Eterna) suggest elevated risk in a high interest-rate environment.
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For investors and analysts in the Nigerian oil & gas space, disciplined capital structure management remains a critical factor for long-term stability and performance.
