At 60.83% YtD Growth, Oil & Gas Emerges Best Performing Sector on NGX

Kayode Tokede 

With the Nigerian Exchange Limited All-Share Index (NGX ASI) posting a  29.27 per cent Year-till-Date (YtD) return as of March 18, 2026, the constituent indices in the market showed remarkable performances that underscored the resilience of the Nigerian stock market.

Fuelled by stellar performances from Aradel Holdings Plc, Seplat Energy Plc, Japaul Gold Plc,

among others, the NGX Oil and Gas Index emerged as the market’s top-performing index so far this year.

THISDAY analysis of trading numbers showed that the NGX Oil & Gas Index at 60.83 per cent YtD doubled the NGX ASI and surpassed other sectors on the bourse.  

Analysts expressed that the NGX Oil & Gas Index (which tracks listed upstream, downstream, and integrated energy companies on the Exchange) is currently being driven by a mix of stock-specific rallies, oil market fundamentals, policy reforms, and macro/foreign exchange dynamics.

While the NGX Industrial Goods Index with a record of an cumulative 55.23 per cent YtD gain, coming second, the NGX Insurance Index lagged at 6.6 per cent YtD growth,  making it a relative underperformer among the other  sectors.

The ongoing recapitalisation in the banking sector has pushed the NGX Banking Index to 29.16 per cent YtD, while NGX Consumer Goods Index closed the period under review at 10.42 per cent YtD. 

In respect of market value, Seplat Energy’s market capitalisation soar to N5.5 trillion as of March 18, 2026. Its market value gain was on the back of impressive 2025 financial year result and accounts. The company has seen its stock price from N5,809.00 per share to N9,099.90 per share, making it an average return of 56.65 per cent YtD. 

Seplat Energy delivered transformational growth in 2025, with group production rising 148per cent to 131,506 boepd and revenue surging 144per cent to $2.73 billion, reflecting the first full-year consolidation of offshore assets and strong onshore performance driven by the completion of the Sapele Gas Plant and new well activity.  Financial performance strengthened significantly, as adjusted EBITDA rose 137per cent to $1.28 billion, operating profit increased to $675.2 million, and operating cash flow expanded 276% to $1.17 billion. 

Net debt  of Seplat Energy dropped 25 per cent to $673.3 million, supporting a total FY 2025 dividend of 25.0 cents per share, up 52 per cent year on year.

Aradel Holdings with an impressive performance in 2025 has seen its market capitalisation at N5.26 trillion amid its stock price trading at N1,210.30 per share.

In its YtD performance, the stock price of Aradel Holdings has appreciated by 80.6 per cent from N670 per share it closed for trading in 2025.

Nigeria’s leading  integrated energy company reported full year unaudited December 31, 2025 result and accounts with N401.2 billion profit after tax, about 55 per cent increase over N259.1 billion reported in 2024 full year result and accounts.  

The company also declared N463.7 billion profit before tax in 2025, representing an increase of 46 per cent when compared to N316.8  billion reported in 2024. The increase in profit underpinned the company’s disciplined Merger & Acquisition  execution and long term value creation.

Aradel Holdings delivered strong top-line growth, with total revenue at about N697.3 billion in 2025, up by 20 per cent from  N581.2 billion in 2024.

Capital market analysts have distanced the rise in global oil prices to NGX Oil & Gas Index YtD performance, maintaining that investors reacted to impressive 2025 corporate earnings , among other reforms ongoing in the sector. 

The ongoing US–Israel military campaign against Iran, which began last month, and the resulting disruption to maritime flows through the Strait of Hormuz have triggered a sharp rise in global energy prices, strengthened safe-haven demand for the US dollar, and tightened global financial conditions. 

These developments are already transmitting to emerging and frontier markets, including key African economies, through higher energy costs, currency pressures, and shifting investor sentiment. 

Cordros Research in a report stated that, “Looking ahead, we believe the magnitude of the economic impact will largely depend on the duration and scale of the conflict. Our baseline scenario assumes a contained military campaign, with coalition forces maintaining air superiority and focusing on degrading Iran’s military infrastructure while avoiding a large-scale ground invasion. 

“While recent operations aimed at securing maritime routes, including naval surveillance, mine-clearing activities, and targeted strikes on Iranian naval assets, may gradually reduce risks to shipping, tanker traffic through the Strait of Hormuz is likely to remain subject to elevated security conditions and higher insurance costs in the near term. 

“As a result, energy markets are expected to remain tight in the short run, keeping oil prices elevated around $90.00/barrel in the near term before moderating toward $70.00–75.00/barrel in the second half of 2026 as security conditions improve and global supply begins to outpace demand.”

The firm noted that the macroeconomic implications for African coverage economies — Nigeria, Egypt, Kenya, and Ghana — will vary depending on their energy trade exposure, external buffers, and policy flexibility. 

It added, “Higher energy prices, rising freight costs, a stronger US dollar, and heightened global risk aversion represent the primary transmission channels. In our baseline scenario, we expect the macroeconomic effects to be noticeable but temporary, with central banks likely adopting a more cautious policy stance and delaying monetary easing until geopolitical risks subside. 

“Under a downside scenario of prolonged disruption and persistently higher oil prices, however, external balances, exchange rates, and inflation could come under greater pressure across several economies, potentially prompting tighter policy responses to safeguard macroeconomic stability.”