The strong financial performance recorded by several companies listed on the Nigerian Exchange in the first half of 2026 has been linked to key economic reforms implemented by President Bola Tinubu’s administration since 2023.
One of the major reforms was the unification of the foreign exchange market, which introduced a single, market-determined exchange rate and improved price discovery.
The reform enabled companies with significant foreign currency exposure to more accurately reflect the value of their dollar-denominated revenues in their financial statements.
Export-oriented and foreign exchange-earning companies such as Aradel Holdings and Seplat Energy have particularly benefited, given that their revenues are largely tied to international oil prices and settled in foreign currency.
The administration’s efforts to boost investor confidence in the energy sector were also reflected in its approval of major upstream transactions.
Among the notable deals was the acquisition of Shell Petroleum Development Company (SPDC) assets by the Renaissance Africa Energy consortium, of which Aradel Holdings is a member. Another was the approval of Seplat Energy’s acquisition of the assets of Mobil Producing Nigeria Unlimited (MPNU).
The approvals removed significant regulatory uncertainty surrounding two major transactions in Nigeria’s upstream oil and gas sector while expanding the reserve base, production capacity and long-term growth prospects of the companies involved.
The transfer of mature onshore assets to well-capitalised indigenous operators has also been credited with strengthening domestic participation in the petroleum industry and creating opportunities for higher production volumes, revenue and earnings.
Another major policy was the approval of naira payments for domestic crude oil transactions, which has supported the growth of local refining capacity.
The policy has contributed to the increased availability of crude for domestic refiners, with the Dangote Refinery expanding its operations and emerging as an exporter of products including Premium Motor Spirit and aviation fuel.
Manufacturing and industrial companies have similarly benefited from the changing foreign exchange environment.
Companies such as Dangote Cement, BUA Cement and HBM, formerly known as Lafarge Africa, have been able to plan production, procure imported inputs and allocate capital with greater certainty under the unified exchange rate framework.
Improved access to foreign exchange has helped reduce operational bottlenecks, strengthen supply chain planning and support production, contributing to stronger revenue and profitability for some major manufacturers.
The removal of the petrol subsidy has also played a significant role in the government’s fiscal position.
Although the policy initially increased economic pressures on businesses and households, the resulting reduction in subsidy expenditure has created additional fiscal space for government spending, infrastructure investment and revenue mobilisation.
The reforms have also been complemented by tighter monetary management and broader financial sector reforms aimed at improving macroeconomic stability.
Greater exchange rate stability, efforts to moderate inflationary pressures and improved liquidity conditions have provided businesses with a more predictable environment for investment and long-term planning.
The ongoing recapitalisation of the banking sector is also expected to strengthen financial institutions’ capacity to provide funding for large-scale corporate activities, while tax reforms aimed at simplifying administration and broadening the revenue base are designed to reduce structural inefficiencies.
Taken together, the reforms have improved market efficiency, strengthened investor confidence and facilitated more effective capital allocation for capital-intensive and export-oriented businesses.
The financial results posted by several Nigerian Exchange-listed companies in the first half of 2026 therefore reflect not only individual corporate strategies but also changes in the broader economic environment.
The performance of these companies illustrates how structural reforms, improved market fundamentals and a more predictable operating environment can translate into stronger corporate revenues and earnings before tax.
