Nigeria’s economic recovery is beginning to reflect more strongly in corporate earnings, with 10 major quoted companies recording a combined revenue of N14.4 trillion and profit before tax (PBT) of N4.99 trillion in the first half of 2026.
An assessment by the Nigeria Revenue Service (NRS) attributed the improved performance to a more stable macroeconomic environment, improved market efficiency and stronger investor confidence following the economic reforms introduced by President Bola Tinubu’s administration.
The combined performance represents a significant improvement from the corresponding period of 2025, when the companies generated approximately N10.59 trillion in revenue and N2.99 trillion in profit before tax.
The NRS said the figures indicate that the country’s economic recovery is increasingly translating into stronger corporate earnings after an initial period of severe adjustment following the implementation of major reforms.
The reforms, introduced largely from May 2023, include the removal of the petrol subsidy, foreign-exchange market reforms, tighter monetary management, tax reforms and measures designed to improve fiscal sustainability and restore investor confidence.
Among the companies that drove the improvement were MTN Nigeria Communications Plc, Dangote Cement Plc, Seplat Energy Plc and Aradel Holdings Plc, all of which recorded substantial increases in revenue and profit before tax.
MTN, Dangote, Seplat and Aradel Lead Growth
MTN Nigeria led the companies in revenue, recording N2.99 trillion in the first half of 2026, representing a 25 per cent increase from N2.38 trillion in the corresponding period of 2025.
Its profit before tax rose by 75.2 per cent to N1.09 trillion, compared with N622.26 billion a year earlier.
Dangote Cement recorded revenue of N2.51 trillion, up 21.4 per cent from N2.07 trillion in H1 2025, while Seplat Energy posted N2.5 trillion, representing a 16.5 per cent increase from N2.17 trillion.
Seplat’s profit before tax also rose sharply to N700 billion from N454 billion, representing a 54.2 per cent increase.
Aradel Holdings recorded one of the strongest revenue increases among the companies, with revenue rising to N2.49 trillion from N368.08 billion, a 576.9 per cent increase.
Its profit before tax rose to N752 billion from N191 billion, representing a 293.7 per cent increase.
The combined PBT of the 10 companies increased by 66.7 per cent to N4.99 trillion in H1 2026, from N2.99 trillion in the same period of 2025.
Other companies also posted notable growth.
Nigerian Breweries increased revenue by 8.9 per cent to N803.68 billion, while BUA Foods grew revenue by 16.2 per cent to N765.12 billion.
BUA Cement recorded a 25.6 per cent increase in revenue to N728.93 billion, while HBM Nigeria Conglomerate grew revenue by 31.2 per cent to N678.41 billion.
Nestlé Nigeria posted a 12 per cent increase in revenue to N581.04 billion.
Transcorp, however, recorded a 13.4 per cent decline in revenue to N279.04 billion.
NRS: Reforms Created More Predictable Business Environment
Executive Chairman of the NRS, Dr Zacch Adedeji, defended the administration’s reforms, arguing that the removal of the petrol subsidy prevented an even greater fiscal burden on the country.
According to Adedeji, the subsidy, which he described as an “under-recovery” rather than a conventional subsidy, could have cost the government about N53 trillion annually under prevailing global conditions.
He also argued that retaining the subsidy would have put additional pressure on the naira, potentially pushing the exchange rate to about N3,500 to the US dollar.
The NRS said the reforms initially created significant difficulties for businesses, particularly companies with substantial foreign-currency obligations. Several firms recorded major exchange-rate losses that affected profitability, share prices and dividend payments.
However, the revenue service said the transition to a more market-determined exchange-rate regime has enabled companies with foreign-exchange exposure to better reflect the value of their dollar-denominated earnings and assets.
It added that improving exchange-rate stability, moderating inflationary pressures and better liquidity conditions have subsequently strengthened business confidence and improved companies’ ability to make longer-term investment decisions.
The NRS also highlighted the recapitalisation of the banking sector, saying it has strengthened the capacity of financial institutions to provide large-scale corporate financing.
“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 allocation of capital,” the agency stated.
Oil Sector Recovery Supports Corporate Earnings
The impact of the reforms has been particularly visible in the oil and gas sector, where companies such as Seplat Energy and Aradel Holdings have benefited from higher production, foreign-currency-linked revenues and increased investor confidence.
The government’s approval of major upstream transactions involving the two companies has also strengthened their long-term growth prospects.
Aradel is part of the consortium involved in the acquisition of Shell Petroleum Development Company assets, while Seplat completed the acquisition of Mobil Producing Nigeria Unlimited.
The transactions are expected to expand the companies’ reserve bases and production capacity while reducing regulatory uncertainty around major upstream investments.
The NRS said crude oil production had recovered to about 1.73 million barrels per day by August 2026, equivalent to approximately 104 per cent of Nigeria’s OPEC quota, compared with production of about 1.2 million to 1.3 million barrels per day previously.
It attributed the recovery to intensified security operations against pipeline vandalism and crude theft in the Niger Delta, as well as continued implementation of the Petroleum Industry Act (PIA), which it said had improved fiscal and regulatory certainty for upstream operators.
“Monthly output has fluctuated along the way to this recovery, which is a normal feature of a sector rebuilding investor confidence and operational consistency after years of underinvestment. The overall trajectory since 2023 remains clearly upward,” the report stated.
Refining Capacity Rises as Fuel Imports Decline
The NRS also highlighted the rapid expansion of domestic refining capacity.
According to the agency, domestic refining capacity increased from about 30,000 barrels per day in May 2023 to approximately 700,000 barrels per day by mid-2026.
It said about 90 per cent of domestic petrol supply was now being met through local refining, while diesel imports had fallen to zero by May 2026.
The Dangote Refinery has been central to the shift, with the NNPC-Dangote crude-for-naira arrangement helping to reduce dollar demand associated with petroleum imports.
The NRS said the development demonstrated the growing impact of private-sector investment supported by greater policy and regulatory certainty.
It added that the NNPC’s legacy refineries in Port Harcourt, Warri and Kaduna remained areas requiring continued attention, with government strategy increasingly focused on partnership models involving proven operators.
Tax Reforms Drive Revenue Diversification
The NRS said improvements in government revenue collection were also being supported by the digitalisation of tax administration.
Among the measures highlighted was the rollout of the national e-invoicing system for large taxpayers and the implementation of four new tax laws from January 1, 2026.
The laws are the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service Establishment Act and Joint Tax Board Establishment Act.
The transformation of the former Federal Inland Revenue Service into the Nigeria Revenue Service has also expanded the government’s revenue-consolidation framework by bringing together non-tax revenue streams previously collected by other agencies.
The agency said non-oil sources now accounted for 76 per cent of total collections, describing the development as evidence of progress in diversifying government revenue, although oil revenues remain significant.
However, the NRS acknowledged that the tax-to-GDP ratio still has considerable room for expansion toward the government’s 18 per cent target.
It projected that wider adoption of e-invoicing and the full implementation of the new tax laws could further strengthen revenue collections in 2026 and 2027.
Debt Position, Investor Confidence Improve
The NRS report also pointed to improvements in Nigeria’s debt position.
According to the agency, the country’s debt-to-GDP ratio declined from 35.5 per cent in 2025 to 32.3 per cent in 2026, largely because nominal GDP growth outpaced debt growth.
The report said the increase in naira-denominated debt was largely associated with the revaluation of dollar-denominated debt following the movement in the exchange rate rather than fresh borrowing.
It also cited the November 2025 Eurobond as evidence of improving investor confidence, saying the issuance was oversubscribed 12 times and attracted a record order book.
However, the NRS cautioned that debt-service-to-revenue remains a critical indicator that requires continued attention.
It said further reductions in the ratio would depend primarily on sustained growth in domestic revenue mobilisation, which would provide government with greater fiscal space for capital expenditure without excessive reliance on new borrowing.
Reforms Bring Gains but Pain Remains
According to the NRS, Nigeria has moved from what it described as “acute macroeconomic distress” in May 2023 towards a more stable and increasingly resilient economic position.
It identified fuel subsidy removal, foreign-exchange unification, implementation of the Petroleum Industry Act, disciplined monetary policy and the tax-law overhaul as the principal reforms behind the shift.
However, the economic recovery has not eliminated the hardship experienced by households.
The removal of the petrol subsidy and the unification of the foreign-exchange market, alongside other measures including electricity tariff increases, contributed to sharp increases in fuel, food, transportation and other essential costs.
The resulting pressure on household incomes and purchasing power has fuelled continued debate over whether improvements in government revenue, investment and corporate earnings are translating into better living standards for Nigerians.
The reforms have been particularly challenging for low- and middle-income households, which have continued to contend with elevated living costs and the effects of inflation.
Adedeji acknowledged the pain associated with the reforms but argued that they were necessary to correct structural weaknesses inherited by the administration.
He said the government inherited four major distortions: an unsustainable petrol subsidy regime, an opaque foreign-exchange market, an underperforming oil sector and a narrow tax base.
He also cited a trade deficit, negative foreign-investment flows, a foreign-exchange backlog of about $7 billion and Ways and Means obligations of roughly N23 trillion among the challenges confronting the administration when it assumed office.
“I understand the pain, because it has to be painful,” Adedeji said, arguing that the reforms were aimed at establishing a stronger foundation for long-term economic growth rather than providing short-term relief.
The NRS said the stronger first-half performance of major quoted companies suggests that the Nigerian economy is gradually moving from an adjustment phase towards consolidation.
According to the agency, improved market pricing, greater macroeconomic stability, stronger fiscal capacity and increased investment certainty are beginning to translate into stronger corporate earnings.
It said sustaining those gains would depend on continued implementation of the reforms, stronger domestic revenue mobilisation, further improvements in the oil and gas sector and policies capable of converting macroeconomic improvements into broader economic opportunities and improved living standards.
