Aradel Holdings Plc and Seplat Energy generated a combined pre-tax profit of approximately N1.54 trillion in the first half of 2026, with a substantial portion of their earnings absorbed by tax obligations.
Analysis of the companies’ half-year financial results shows that they incurred a combined total income tax expense of about N1.13 trillion, representing roughly 73% of their combined pre-tax profit.
The current tax burden was particularly significant for both energy companies.
Aradel Holdings recorded a current tax charge of N748.1 billion, only N4.6 billion lower than its N752.7 billion pre-tax profit for the six-month period.
This means the company’s current tax charge was equivalent to 99.4% of its profit before tax. However, deferred tax adjustments reduced the total tax expense ultimately recognised in its income statement.
Seplat Energy also reported a substantial tax obligation. The company recorded a current tax charge of $475.6 million, representing 82.7% of its $574.9 million pre-tax profit for the period.
Using an exchange rate of N1,377/$, Seplat’s current tax charge translates to approximately N654.8 billion, compared with N790.4 billion in pre-tax profit.
After accounting for deferred tax adjustments, Seplat recognised a total income tax expense of about N564.9 billion in its income statement.
The figures underscore the significant tax obligations faced by major upstream oil and gas companies operating in Nigeria, even as both firms delivered strong earnings during the first half of 2026.
