The Nigerian oil and gas sector has made a strong comeback on the Nigerian Exchange in 2026, climbing more than 31% year-to-date and outperforming the industrial goods sector, which has risen over 18%.
Tracked by the NGXOILGAS index, the Nigerian Oil & Gas sector started 2026 at 2,670.2 points, broke past the 3,000-point mark in January, and has soared above 3,500 in early February.
The rally follows a brief downturn in late 2025, when the sector fell 7.33% in November and dipped below 2,700 points in December, after a deeper 10.12% retracement in the first half of 2025.
However, early 2026 has seen a surge in the Nigerian oil and gas sector, driven by heavyweights Seplat and Aradel, whose strong performance has pushed the index to new highs.
What the data is saying
The NGXOILGAS index opened January 2026 around 2,670.2 points, gaining 368.6 points to surpass the 2,900 resistance zone and closing the month at 3,038.8 points.
- Early February has been even stronger, with the index adding over 450 points to move above 3,500 by mid-trading on 10th February 2026.
- This performance outpaces the broader All-Share Index, which has gained over 13.6% year-to-date, with the NGX Oil and Gas Index up more than 31%.
Much of the rally has been driven by Aradel, up over 47.9%, and Seplat, up more than 26.8% as of early February.
- Their influence extends beyond the Oil & Gas sector, as both companies account for over 3.8% each of the Exchange, with market caps of N4.4 trillion (Seplat) and N4.3 trillion (Aradel).
The strong performances are likely supported by positive sentiment on operational results, including Aradel’s FY2025 pre-tax profit of N463.7 billion, up 46.5%, and solid events at Seplat, which may boost its FY2025 results when published.
Positive fundamentals
Positive developments in Seplat include the start of gas production at its Assa North–Ohaji South (ANOH) project in Imo State, which can process 300 million standard cubic feet per day.
This raises Seplat’s onshore gas capacity to over 850 MMscfd and is expected to boost revenue, reduce carbon intensity, and support the 2030 production target of 200 kboepd.
- On the corporate side, Tony Elumelu’s Heirs acquired a 20% stake in Seplat Energy from Maurel & Prom for $500 million, becoming the largest single shareholder. Earlier, Seplat’s subsidiaries switched their onshore oil assets to the Petroleum Industry Act system, replacing the old tax regime and paving the way for stronger profitability and cash flow.
- Aradel, on the other side, has reported strong 2025 results, with pre-tax profit up 46.5% to N463.71 billion and after-tax profit rising 54.87% to N401.22 billion.
According to its CEO, Adegbite Falade, the company’s diversified energy portfolio and the additional 40% stake in ND Western Limited were key drivers of growth.
- Revenue growth supported the strong performance, with crude oil revenue increasing 18% to N440.1 billion from higher production and 4.1 million barrels sold.
- Refined products revenue also rose 18% to N210.8 billion, making up 30% of total revenue and reflecting the benefits of Aradel’s diversification strategy.
Although Seplat is yet to file its full-year financial report, strong full-year results are expected.
What to know
In October 2025, Renaissance Capital Africa gave Aradel a “Buy” rating, forecasting a 62.6% upside to a target price of N1,040.90, citing strong growth prospects.
- Later in December, Zedcrest Wealth maintained its BUY rating on Seplat, targeting N8,049, implying a 38.6% upside.
- Aradel is currently priced at N991, up more than 47% year-to-date in 2026.
- Seplat is up over 26%, trading at N7,370.
Further positive reactions to the fundamentals of both companies could push their share prices toward the targets set by analysts.
Eterna Plc, a medium-cap company in the NGX oil and gas sector, is up more than 16%.
