Nigeria’s oil and fuel sector exhibits a widening hole in debt sustainability throughout trade gamers, with a number of corporations demonstrating prudent steadiness sheet administration, whereas others stay deeply burdened by excessive borrowings and damaging fairness.
The highest 5 most indebted listed oil and fuel corporations—led by Oando Plc, Seplat Vitality Plc —spotlight contrasting monetary realities, from strategic leverage to extreme solvency stress.
Whereas some corporations have leveraged debt to drive enlargement and preserve liquidity buffers, others face mounting compensation challenges, underscoring the significance of disciplined capital construction administration in a high-interest-rate surroundings.
Under are essentially the most indebted listed corporations within the oil and fuel trade.
- Present Debt: N29.28 billion
- Non-Present Debt: N10.13 billion
Eterna Plc although indebted, recorded an enchancment in its debt place in June 2025. Its whole borrowings by 17.6% YoY to N39.41 billion in June 2025, although its leverage stays excessive.
The corporate held solely N2.45 billion in money and money equivalents, leaving a internet debt place of N36.97 billion. This means that whereas borrowings have eased, liquidity stays skinny relative to debt publicity.
Eterna’s debt ratio of 0.63x signifies that 63% of its property are financed via debt, a excessive proportion by trade requirements. The debt-to-equity ratio of 11.52x and the debt-to-capital ratio of 0.92x spotlight a steadiness sheet closely depending on borrowings. A debt-to-EBITDA ratio of 12.61x factors to restricted earnings capability to cowl debt, although the curiosity protection ratio of two.99x suggests the corporate nonetheless generates sufficient working earnings to fulfill curiosity obligations.
The corporate’s excessive gearing and weak liquidity place spotlight the necessity for sustained earnings progress and disciplined debt administration to strengthen monetary stability within the medium time period.
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