FX unification, upstream approvals boost NGX firms – Presidency

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Bayo Onanuga

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–Says policy changes improved investor confidence, business environment

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By Johnbosco Agbakwuru

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ABUJA— THE Presidency said on Wednesday that the robust first-half 2026 earnings reported by many companies on the Nigerian Exchange (NGX) reflect the economic reforms President Bola Tinubu’s administration implemented after taking office in 2023.

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The presidency in a statement by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, said the stronger earnings posted by major firms in the energy, manufacturing, and financial sectors show the administration’s structural reforms are yielding tangible benefits for businesses and the wider economy.

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IAccording to him, the robust first-half 2026 financial results posted by many companies on the Nigerian Exchange reflect several major economic reforms introduced by President Bola Ahmed Tinubu’s administration since mid-2023.

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“The strong financial performance recorded by many of the companies listed on the Nigerian Exchange in the first half of 2026 is attributable to several key economic reforms implemented by President Bola Ahmed Tinubu’s Administration since mid-2023,” he said.

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The presidential spokesman identified the unification of the foreign exchange market as one of the administration’s most consequential reforms, saying that “by establishing a single, market-determined exchange rate, the reform improved price discovery and enabled companies with substantial foreign currency exposure to more accurately reflect the value of their dollar-denominated revenues in their financial statements”.

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He said the policy had been especially advantageous for export-focused, foreign-exchange-earning companies, such as Aradel Holdings and Seplat Energy, “whose revenues are largely linked to international oil prices and are settled in foreign currency”.

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Onanuga credited Tinubu’s approval of major upstream oil and gas transactions with boosting investor confidence and strengthening the long-term prospects of indigenous operators.

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He cited the approval of the Renaissance Africa Energy consortium’s acquisition of Shell Petroleum Development Company (SPDC) assets, in which Aradel Holdings is a consortium member, as well as Seplat Energy’s acquisition of Mobil Producing Nigeria Unlimited (MPNU) assets.

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He said: “These strategic approvals significantly expanded the reserve base, production capacity, and long-term growth prospects of both companies while removing regulatory uncertainty surrounding two of the largest transactions in Nigeria’s upstream oil and gas industry.

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“By facilitating the transfer of mature onshore assets to well-capitalised indigenous operators, the administration strengthened investor confidence, accelerated domestic participation in the petroleum sector, and positioned both Aradel and Seplat to capture higher production volumes, stronger revenues, and improved earnings before tax”, he added.

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Onanuga further argued that President Tinubu’s approval of naira payment for crude oil had strengthened local refining capacity, noting that the policy had helped position the Dangote Refinery as “a net exporter of PMS and Aviation fuel”.

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He also said manufacturing and industrial companies had benefited from improved access to foreign exchange and a more predictable currency market.

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According to the statement, firms such as Dangote Cement, BUA Cement and HBM, formerly Lafarge Africa, “have been able to plan production, procure imported inputs more efficiently, and allocate capital with greater certainty under a unified exchange rate framework”.

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It added that “improved foreign exchange availability has reduced operational bottlenecks, strengthened supply chain planning, and supported higher production volumes, contributing to stronger revenue growth and improved profitability”.

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The Presidency also linked the improved corporate performance to the removal of petrol subsidy, saying the policy had “significantly strengthened the government’s fiscal position.

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“The resulting improvement in public finances has increased fiscal capacity for infrastructure investment, enhanced revenue mobilisation, and reinforced broader macroeconomic stability. These developments have created a more supportive operating environment for large-scale businesses by improving investor confidence and strengthening expectations of long-term economic sustainability”, the statement said.

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Onanuga further highlighted the impact of monetary, banking and tax reforms, saying: “Tighter monetary management and ongoing financial sector reforms have contributed to a more stable macroeconomic environment. Greater exchange rate stability, moderating inflationary pressures, and improving liquidity conditions have enhanced business confidence, allowing companies to make longer-term investment decisions with greater certainty”.

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He added that “banking sector recapitalisation has strengthened the financial system’s capacity to support large-scale corporate financing”, while “ongoing tax reforms aimed at simplifying administration and broadening the revenue base have improved the overall business climate and reduced structural inefficiencies”,

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Summing up the administration’s position, the presidential aide said: “Taken together, these reforms have enhanced the operating environment for capital-intensive and export-oriented firms by improving market efficiency, strengthening macroeconomic stability, increasing investor confidence, and facilitating more efficient capital allocation”.

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He concluded that “the resulting improvements in operational efficiency, financial transparency, and investment planning provide a clear economic explanation for the substantial increases in both revenue and earnings before tax recorded by many of the companies listed on the Nigerian Exchange.

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“Rather than reflecting isolated firm-level developments, these 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”, Onanuga said.

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