The oil and gas sector has emerged as the best-performing segment of Nigeria’s equities market, recording a 111.86 per cent year-to-date (YTD) return and significantly outperforming other sectoral indices on the Nigerian Exchange (NGX).

As of the close of trading on September 4, 2026, the oil and gas index had gained 111.86 per cent, ahead of the industrial goods index, which returned 82.2 per cent.

The banking index gained 73.84 per cent, while the NGX All-Share Index advanced 58.72 per cent. The consumer index rose 4.5 per cent, while the insurance index remained in negative territory, declining 5.74 per cent.

The oil and gas sector’s performance represents a sharp reversal from its 2025 position, when it closed the year as the worst-performing major sectoral index with a negative 1.33 per cent return.

The strong rally this year reflects renewed investor confidence in energy companies, expectations of stronger earnings and improving operating conditions.

The sector’s performance has also contributed significantly to the broader equities market rally, which has maintained a strong positive return despite bouts of profit-taking and volatility in some major stocks.

The improved performance has been driven largely by higher crude oil prices, increased investor expectations and major corporate transactions that have strengthened the outlook for some of the sector’s biggest companies.

Higher crude oil prices, partly linked to geopolitical tensions in the Middle East, have raised expectations of stronger earnings for oil and gas companies, making the sector more attractive to investors.

Executive Director of Halo Capital Management Limited, Dr Paul Uzum, said Seplat had benefited from increased investor interest following Tony Elumelu’s acquisition of a 20 per cent stake in the company and his subsequent emergence as chairman.

Uzum said the transaction and the profile of the new chairman had strengthened market sentiment around the stock and attracted fresh investor attention.

He also noted that Aradel Holdings had benefited from its acquisition of a stake in ND Western, with investors pricing in the potential long-term benefits of the transaction and its expected contribution to the company’s financial performance.

The stockbroker said the performances of Seplat and Aradel Holdings were particularly significant because of their relatively high weighting in the sectoral index.

He added that, with the two companies carrying significant weights in the oil and gas index, their strong share-price performances had lifted the overall sectoral index in 2026.

The strong market performance has also been supported by earnings growth.

In its half-year results, Seplat posted profit after tax (PAT) of N225.5 billion, compared with N42.5 billion in the corresponding period of 2025, representing a 430.6 per cent increase. Its revenue rose to N2.5 trillion from N2.1 trillion.

Oando reported PAT of N68.6 billion, up from N63 billion in the first half of 2025, representing an 8.9 per cent increase. Revenue climbed to N2.1 trillion from N1.7 trillion.

Eterna recorded one of the strongest earnings improvements during the period, with PAT surging to N5.88 billion from N573.81 million, representing a 924.8 per cent increase.

Conoil also sustained strong earnings growth, with PAT rising to N5.15 billion from N900.42 million, representing a 471.9 per cent increase. Revenue grew by 25.2 per cent to N179.89 billion from N143.65 billion.

Seplat closed the last trading session at N5,809 per share, representing a 133 per cent YTD gain and placing it among the best-performing stocks on the NGX. The stock has also gained 19 per cent over the past four weeks.

Similarly, Aradel began the year at N670 per share and has gained 122 per cent to close at N1,450.

President of NewDimension Shareholders Association of Nigeria, Patric Ajudua, attributed the strong performance of the oil and gas sector to improved foreign exchange stability, higher crude oil prices, increased production and stronger profitability among companies in the sector.

Ajudua added that the sector had benefited from government economic policies that helped improve foreign exchange stability, while improved security in oil-producing states had also supported higher production by reducing oil theft.