Nigeria’s oil and gas sector shows a widening gap in debt sustainability across industry players, with a few companies demonstrating prudent balance sheet management, while others remain deeply burdened by high borrowings and negative equity.
The top five most indebted listed oil and gas companies—led by Oando Plc, Seplat Energy Plc —highlight contrasting financial realities, from strategic leverage to severe solvency stress.
While some firms have leveraged debt to drive expansion and maintain liquidity buffers, others face mounting repayment challenges, underscoring the importance of disciplined capital structure management in a high-interest-rate environment.
Below are the most indebted listed companies in the oil and gas industry.
- Current Debt: N29.28 billion
- Non-Current Debt: N10.13 billion
Eterna Plc though indebted, recorded an improvement in its debt position in June 2025. Its total borrowings by 17.6% YoY to N39.41 billion in June 2025, though its leverage remains high.
The company held only N2.45 billion in cash and cash equivalents, leaving a net debt position of N36.97 billion. This suggests that while borrowings have eased, liquidity remains thin relative to debt exposure.
Eterna’s debt ratio of 0.63x indicates that 63% of its assets are financed through debt, a high proportion by industry standards. The debt-to-equity ratio of 11.52x and the debt-to-capital ratio of 0.92x highlight a balance sheet heavily dependent on borrowings. A debt-to-EBITDA ratio of 12.61x points to limited earnings capacity to cover debt, though the interest coverage ratio of 2.99x suggests the company still generates enough operating income to meet interest obligations.
The company’s high gearing and weak liquidity position highlight the need for sustained earnings growth and disciplined debt management to strengthen financial stability in the medium term.
