President Bola Tinubu has attributed the strong financial performance recorded by several companies listed on the Nigerian Exchange in the first half of 2026 to the economic reforms implemented by his administration since mid-2023.
In a statement issued on Wednesday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the Presidency asserted that reforms have collectively improved the operating environment for businesses and boosted corporate profitability.
These policies include the unification of the foreign exchange market, petrol subsidy removal, banking sector recapitalisation, tax reforms, and monetary tightening.
Policy Reforms Drive Corporate Earnings
The Presidency identified the unification of the foreign exchange market as one of the most significant reforms. The move established a single, market-determined exchange rate that improved price discovery and allowed companies with significant foreign currency exposure to accurately reflect the value of their dollar-denominated revenues.
Export-oriented and foreign exchange-earning firms such as Aradel Holdings and Seplat Energy have particularly benefited from the policy, as their revenues are largely tied to international oil prices and settled in foreign currency.
The statement also linked the improved performance of both companies to the administration’s approval of key upstream oil transactions. These include the Renaissance Africa Energy consortium’s acquisition of Shell Petroleum Development Company assets, in which Aradel Holdings is a member, and Seplat Energy’s acquisition of the assets of Mobil Producing Nigeria Unlimited.
Oil Majors Lead the Profit Surge
Aradel Holdings Plc posted a pre-tax profit of N752.71 billion for the six months ended June 30, 2026, representing an increase of 293% from N191.31 billion recorded in the corresponding period of 2025. Aradel’s performance was driven by a sharp expansion in crude oil production and sales, which remained the dominant contributor to group revenue.
Crude oil generated N1.98 trillion, accounting for approximately 79% of total revenue, while gas contributed N512.10 billion and refined products contributed N129.44 billion.
Similarly, for the six months ended June 30, 2026, Seplat Energy Plc reported a 74.1% year-on-year increase in profit before tax to N790.4 billion from N454.1 billion. The company’s earnings improvement was supported by stronger revenue growth, lower cost of sales, improved production, a supportive commodity price environment, and reduced finance costs.
Mixed Realities for Local Manufacturers
The Presidency also cited the government’s naira for crude policy, saying it has strengthened local refining capacity and enabled Dangote Refinery to become a net exporter of premium motor spirit and aviation fuel.
Manufacturing companies including Dangote Cement, BUA Cement, and Lafarge Africa were also identified as beneficiaries of improved access to foreign exchange under the unified exchange rate framework.
Despite the improved financial performance recorded by some listed companies, several manufacturing companies continue to face high production costs driven by persistent inflation, elevated energy costs, and high interest rates.
According to the latest Purchasing Managers’ Index tracked by Nairametrics, the Manufacturing PMI stood at 50.10 in June 2026, up from 49.6 in May 2026, indicating that many operators still face output and order declines.
