Aradel’s ₦3.95tn Revenue Surge Meets ₦797bn Finance-Cost Burden

Aradel Holdings posted unaudited nine-month 2026 revenue of ₦3.95 trillion, up 633% from a year earlier, while operating profit rose to ₦1.56 trillion. However, profit after tax fell 82% to ₦43.3 billion as finance costs reached ₦797.3 billion and tax expense stood at ₦721.4 billion. A major pressure point is the ₦529.1 billion charge from unwinding contingent consideration linked to the acquisitions of ND Western and Renaissance Africa Energy Holdings. The group also recorded ₦251.1 billion in interest expense, while current liabilities rose to ₦5.94 trillion. Aradel still generated about ₦2.46 trillion in operating cash flow and ended the period with roughly ₦2 trillion in cash. Yet, investors should watch its acquisition obligations, tax burden, foreign-exchange exposure and ability to convert strong operating performance into sustainable shareholder returns. My view is simple: Aradel remains a major Nigerian energy business with impressive growth, but its valuation and rising financial obligations leave little room for disappointment. The figures are based on the company’s unaudited financial statements for the nine months ended 30 September 2026.

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