Policy reforms introduced by the Nigerian government since 2023 may have ignited an unprecedented rally in the nation’s capital market, particularly within the conglomerates sub-sector, as four listed companies in that space recorded nearly 500 per cent gain over a two-year period.

These reforms, which include the unification of the foreign exchange window, removal of fuel subsidies, tighter monetary policy, and an aggressive push for private sector-led growth, have helped restore investor confidence, drive capital inflows, and repriced previously undervalued equities.

As a result, these four conglomerate stocks, including UACN, Unilever, Scoa and JohnHolt, have delivered remarkable returns between 2023 and 2025, turning what were once overlooked industrial giants into some of the market’s top performers.

One of the standout gainers in the sector is UAC of Nigeria Plc (UACN), which has seen its share price surge from N10.60 kobo in 2023 to N72.70 kobo as of October 10, 2025.

This represents an increase of nearly 586 per cent, a clear signal that the market is responding positively to the company’s turnaround strategy and improved sectoral fundamentals catalysed by macroeconomic shifts.

UAC of Nigeria Plc reported a profit before tax of N25.828 billion for the year ended December 31, 2024, representing 109.30 per cent year-over-year (YoY) growth from the previous year.

Another major player, Unilever Nigeria Plc, followed a similar trend. From a modest price of N14.50 kobo per share in 2023, Unilever’s stock has risen steadily to N74 in 2025. The over 410 per cent growth in share price highlights investor optimism in the company’s earnings outlook and operational efficiency, especially in a post-reform environment that favors leaner, more competitive businesses.

Recall that Unilever recorded a gross profit of N13.1 billion in its 2023 half-year results, representing an eight per cent drop when compared to N14.2 billion achieved in the corresponding period in 2022.

The company also posted a revaluation loss of N14.36 billion in the second quarter of 2023 from N1.06 billion in Q1 2023. According to the company, the revaluation loss was due to foreign currency-denominated balances related to trade loans.

However, in its unaudited interim report for the six-month period ended June 30, 2025, the company recorded a turnover of N98.1 billion, representing a 54 per cent increase from N63.9 billion in the corresponding period of 2024.

Its operating profit surged to N18.8 billion, up from N3.5 billion in the same period last year, reflecting a 444 per cent increase.Also, SCOA Nigeria Plc, a company often seen as a smaller player in the sector, has also outperformed expectations. In 2023, its share price hovered around N1.40, but has since rose to N6.59 kobo, representing over 370 per cent increase that reflects renewed interest in under-the-radar industrial stocks benefiting from sector-wide re-ratings.

In addition, the most remarkable transformation is that of John Holt Plc, which saw its share price appreciate from just N1.72 in 2023 to N7.20 by October 2025. The over 318 per cent growth is indicative of shifting investor sentiment, and possibly, internal restructuring or improved financial performance that has yet to be fully understood by the broader market.

Recall that since 2019, the effects of a challenging operating environment have continued to assail the operations of the nation’s conglomerates sector, as the bottom line of the industry’s quoted companies remained subdued in the last few years, occasioned by assessed policy issues.

Exacerbated by parlous infrastructure, which has inevitably transferred the high production cost to consumers, the companies hitherto were less competitive, with marginal profit margins, as naira depreciation takes its toll on imported raw materials.

However, the tide began to turn in 2023, following a wave of bold economic reforms initiated by the federal government. Key among these were the unification of the foreign exchange rates, removal of fuel subsidies, tightening of monetary policy to rein in inflation, and renewed commitments to infrastructure development and private sector-led growth.

These interventions began to ease structural bottlenecks and revive investor confidence, creating a more favourable operating environment for the conglomerates sector.

The gains, while impressive in numerical terms, are an indication of how policy decisions at the national level can influence investor behavior, unlock hidden value in legacy companies, and reshape entire sectors. For conglomerates, long seen as sluggish and weighed down by outdated business models, the past two years have brought renewed relevance and investor enthusiasm.

An independent investor, Amaechi Egbo, said as Nigeria continues on its reform path, the re-rating of industrial and diversified holdings would persist, especially as inflation begins to moderate, corporate earnings adjust to the new operating environment, and foreign investment trickles back into the market.