Nigeria's leading oil and gas producers, Aradel Holdings and Seplat Energy, are facing a combined tax burden of N1.13 trillion on their first-half profits, according to a report by Nairametrics.
The substantial fiscal charge underscores the significant portion of the sector's record-breaking cash flows that is being redirected to the government, even as the companies benefit from the ongoing oil boom.
24 trillion in cash flow during the first quarter of 2026 alone.
The tax liability comes against a backdrop of robust financial performance for the two firms.
Aradel Holdings recently reported a pre-tax profit of N753 billion, driven by record revenue streams.
Together with Seplat Energy, the companies have emerged as the dominant cash generators in Nigeria's energy sector, collectively accounting for N2.24 trillion in cash flow during the first quarter of 2026 alone.
This dynamic highlights a critical tension in the Nigerian market: while the energy sector remains a primary engine for broader economic activity and corporate profitability, the fiscal take by the state is substantial.