Listed Nigerian oil and gas companies reported a combined revenue of over N7 trillion in H1 2026, a 66 percent increase year-on-year. However, an analysis of the sector reveals a divergence in performance, separating firms into value creators and those focused on leveraged growth.

While Aradel Holdings has shown explosive revenue growth, it faces challenges related to rising finance costs and significant liabilities. Seplat Energy maintains high operational efficiency and profitability but currently grapples with cash flow management. Conversely, Oando has achieved significant scale, yet its balance sheet remains under pressure with negative shareholders’ equity. Meanwhile, downstream players like Eterna show disciplined balance sheet management, prioritizing resilience over rapid expansion. The findings suggest that future success in the sector will be defined by cash conversion, capital discipline, and balance-sheet strength rather than mere revenue growth.

Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has stated that the regulator will maintain heightened supervision of the banking sector despite the successful conclusion of the recent recapitalisation exercise.

Speaking at the BusinessDay 14th Annual CEO Forum, Cardoso noted that while the industry raised between N4 trillion and N5 trillion in fresh capital to build resilience against economic shocks, continuous oversight remains essential. He emphasized that the stronger capital base is intended to support eventual increased lending to the private sector once inflation and interest rates moderate. Cardoso also warned banks against indiscriminate lending, urging them to prioritize sophisticated risk management and proper analysis, especially when navigating complex sectors like oil and gas. The CBN plans to collaborate with financial institutions to enhance their internal risk assessment capabilities.

Japaul Gold & Ventures Plc reported an 11% decline in net profit to N1.22 billion for the 2025 financial year, despite achieving a record revenue of N5.25 billion—a 28% increase driven primarily by its equipment rental business.

The profit shortfall was attributed to a 94% surge in administrative expenses to N1.66 billion and rising finance costs. While the company improved its gross margin to 57%, it recorded a negative operating cash flow of N4.29 billion, largely due to increased working capital requirements and higher payments to suppliers.

Despite these earnings pressures, Japaul bolstered its balance sheet through a successful capital raise, increasing total equity to N20.61 billion. The firm is currently pivoting toward solid minerals and large-scale dredging projects, including a N30 billion contract in Lagos and gold mining operations expected to commence in Q3 2026. Investor confidence remains firm, with the stock price up 31% year-to-date.