KEY POINTS
- NGX Oil & Gas Index climbs over 31% in early 2026, outpacing industrial goods and broader market gains.
- Aradel up 47.9%, Seplat up 26.8%, driving sector growth and investor confidence.
- Expansion projects, strong FY2025 profits, and strategic investments support continued sector momentum.
The Nigerian oil and gas sector has rebounded sharply on the Nigerian Exchange in 2026, climbing more than 31% year-to-date. This performance has outpaced the industrial goods sector, which has gained over 18% in the same period.
Tracked by the NGXOILGAS index, the sector began the year at 2,670.2 points, broke the 3,000-point mark in January, and surged above 3,500 by mid-February.
The rally follows a period of decline in late 2025. The NGXOILGAS index fell 7.33% in November and dipped below 2,700 points in December after a deeper 10.12% decline earlier in the year.
Despite this setback, early 2026 saw renewed investor confidence, with the sector’s gains outpacing the broader All-Share Index, which rose 13.6% year-to-date.
Seplat and Aradel have been the driving forces behind the sector’s rally. Aradel’s shares have jumped 47.9%, while Seplat’s are up 26.8%, with both companies contributing over 3.8% each to the Exchange by market capitalization.
Market Heavyweights Seplat and Aradel Lead the Charge
Seplat Energy and Aradel have been the primary drivers of the sector’s rebound. As of early February, Aradel shares had jumped over 47.9%, while Seplat rose more than 26.8%. These gains have had a significant impact on the NGX, as both companies contribute over 3.8% each to the Exchange by market capitalization, with Seplat valued at N4.4 trillion and Aradel at N4.3 trillion.
Seplat has strengthened its market position through operational expansion and strategic corporate actions. Gas production commenced at the Assa North–Ohaji South (ANOH) project in Imo State, with a processing capacity of 300 million standard cubic feet per day (MMscfd).
This raises Seplat’s onshore gas capacity to over 850 MMscfd, a milestone that is expected to boost revenue, reduce carbon intensity, and support its 2030 production target of 200,000 barrels of oil equivalent per day (kboepd).
In a major corporate development, Tony Elumelu’s Heirs acquired a 20% stake in Seplat Energy from Maurel & Prom for $500 million, making them the largest single shareholder.
Additionally, Seplat’s subsidiaries recently transitioned their onshore oil assets to the Petroleum Industry Act (PIA) system, replacing the previous tax regime. Analysts anticipate this move will enhance profitability and cash flow when Seplat releases its full-year financial results.
