H1 2026: President Tinubu’s Policy Reforms Credited for Strong Corporate Performance

The strong financial performance recorded by many companies listed on the Nigerian Exchange in the first half of 2026 has been linked to key economic reforms implemented by President Bola Ahmed Tinubu’s administration since mid-2023.

Analysts point to structural changes in foreign exchange management, energy sector policy, fiscal adjustments, and financial sector reforms as major drivers behind improved revenues and earnings before tax for several listed firms.

Foreign Exchange Unification

A central reform was the unification of the foreign exchange market. By establishing a single, market-determined exchange rate, the policy improved price discovery and allowed companies with significant foreign currency exposure to more accurately reflect the value of their dollar-denominated revenues in financial statements.

Export-oriented and foreign exchange-earning businesses such as Aradel Holdings and Seplat Energy have benefited in particular. Their revenues are largely linked to international oil prices and settled in foreign currency.

The administration also approved several landmark upstream transactions aimed at strengthening investor confidence in the energy sector.

Notable among them were the Renaissance Africa Energy consortium’s acquisition of Shell Petroleum Development Company, SPDC, assets — with Aradel Holdings as a consortium member — and Seplat Energy’s acquisition of assets from Mobil Producing Nigeria Unlimited, MPNU.

According to government statements, these approvals expanded the reserve base and production capacity of both companies, while reducing regulatory uncertainty around two of the largest transactions in Nigeria’s upstream oil and gas industry.

The transfer of mature onshore assets to well-capitalised indigenous operators is also cited as a factor in strengthening domestic participation in the petroleum sector.

In addition, the approval of Naira payment for crude has been referenced as a policy supporting local refining capacity. Officials note that Dangote Refinery has, as a result, become a net exporter of PMS and aviation fuel.

Manufacturing and industrial companies such as Dangote Cement, BUA Cement, and HBM, formerly Lafarge Africa, have reported improved access to foreign exchange and a more predictable currency market. This has supported production planning, procurement of imported inputs, and capital allocation.

The removal of the petrol subsidy is also identified as a factor that strengthened the government’s fiscal position. Officials say the improvement in public finances has increased capacity for infrastructure investment, enhanced revenue mobilisation, and contributed to broader macroeconomic stability.

Tighter monetary management and ongoing financial sector reforms have contributed to greater exchange rate stability, moderating inflationary pressures, and improved liquidity conditions.

The banking sector recapitalisation exercise is said to have strengthened the financial system’s capacity to support large-scale corporate financing. At the same time, ongoing tax reforms aimed at simplifying administration and broadening the revenue base are expected to improve the business climate and reduce structural inefficiencies.

Taken together, the reforms are described as enhancing the operating environment for capital-intensive and export-oriented firms by improving market efficiency, strengthening macroeconomic stability, and facilitating more efficient capital allocation.

Government and market observers note that the resulting improvements in operational efficiency, financial transparency, and investment planning provide context for the substantial increases in both revenue and earnings before tax recorded by many companies on the Nigerian Exchange in H1 2026.

Rather than reflecting isolated firm-level developments alone, the results illustrate how comprehensive structural reforms can translate into measurable improvements in corporate financial performance through stronger market fundamentals and a more predictable business environment.