Eterna Plc, one of Nigeria’s leading integrated downstream energy companies, has announced a major capital-raising programme through a N21.52 billion rights issue, as the company advances its multi-year strategy to scale operations, deepen market penetration, and reinforce its balance sheet amid reforms reshaping Nigeria’s oil and gas sector.
The equity offer will issue 978,108,485 ordinary shares at N22 per share, structured as three new shares for every four held as of November 27, 2025. The subscription window will open on January 12, 2026 and close on February 18, 2026, giving existing shareholders an opportunity to increase their stake in the company at a discounted offer price. According to the company, all newly issued shares will rank pari passu with existing ordinary shares, ensuring equal rights and benefits for participating shareholders.
A formal signing ceremony for the rights issue was held in Lagos on Tuesday, December 2, 2025, attended by Eterna Plc’s board, executive management, and key transaction advisers. The milestone follows shareholder approval granted at the company’s 2025 Annual General Meeting, where investors backed Eterna’s expansion roadmap and endorsed the need for additional capital to support growth.
Strategic Focus and Use of Proceeds
Eterna Plc explained that proceeds from the offer will be allocated to a range of strategic initiatives across its business segments, particularly in retail expansion, lubricant manufacturing, liquefied petroleum gas (LPG) distribution, and aviation fueling services. The company plans to upgrade its lubricant blending plant, expand its network of fuel stations, add new LPG retail assets, acquire commercial delivery equipment, and invest in sustainability projects aligned with its Environmental, Social, and Governance (ESG) agenda.
Part of the funding will also be deployed as working capital to enhance liquidity and finance inventory cycles, allowing the company to better withstand currency pressure, market volatility, and potential supply disruptions. By injecting fresh equity into the business, Eterna expects to strengthen its capital structure, reduce leverage, and increase its capacity to compete in the rapidly transforming downstream sector.
Strong Financial Recovery Drives Investor Confidence
The rights issue follows a period of strong financial performance that has repositioned the company for a new phase of growth. In 2024, Eterna Plc recorded a 71% surge in revenue to N313.6 billion, up from N183.2 billion in 2023. During the period, the company returned to profitability, reporting a profit before tax of N4.48 billion, representing a major turnaround from the N11.97 billion loss recorded the previous year.
That momentum continued into 2025, with half-year results showing a 6.9% increase in consolidated revenue and an impressive 143.9% rise in profit before tax, reaching N1.57 billion, compared to the same period in 2024. The financial rebound has strengthened investor sentiment and provided a solid foundation for the equity raise.
Capital Raise Reflects Sector Dynamics and Energy Transition Priorities
Nigeria’s downstream oil and gas sector is experiencing structural shifts driven by deregulation, foreign exchange reforms, and the renewed push toward cleaner energy solutions. Operators are also navigating the effects of global crude price fluctuations, regulatory uncertainty, and the need for investments in infrastructure to meet evolving consumer and environmental expectations.
Eterna’s board, led by Chairman Dr. Gabriel Ogbechie, OON, said the rights issue is central to the company’s long-term strategy to retain market leadership in the downstream segment while positioning for opportunities emerging from the energy transition. Eterna plans to expand its LPG footprint, accelerate retail network growth, and build capacity in aviation fueling, where it already has significant operational expertise.
The board believes the capital injection will enhance the company’s competitive advantage through scale, efficiency, and integration, which are critical for sustained performance in a deregulated environment. By deepening its presence across core value chains—fuel distribution, lubricants, LPG, and aviation fueling—Eterna aims to capture value across the entire downstream market while driving shareholder value creation.
Outlook
The N21.52 billion rights issue marks a major milestone in Eterna Plc’s capital development programme and reflects confidence from both investors and management in the company’s future direction. With stronger capitalisation, a growing customer base, and clear commitments toward cleaner energy solutions, Eterna appears well positioned to pursue new opportunities in Nigeria’s evolving energy landscape.
