More than two-thirds of medium and large Nigerian companies have recorded improved financial performance in the first nine months of 2026, raising expectations of stronger year-end results and potentially better returns for investors.
A review of the nine-month financial statements of companies listed on the Nigerian Exchange (NGX) by The Nation’s Market Intelligence showed that most businesses reported growth in revenue and profitability, while about a quarter recorded significant recoveries from losses or weak profit positions.
The results covered companies across key sectors, including manufacturing, banking, insurance, financial services, oil and gas, consumer goods and real estate.
Several companies also expressed confidence in sustaining their performance through the final quarter of the year, reflecting what analysts described as improving corporate conditions amid ongoing macroeconomic reforms.
Managing Director of Arthur Steven Asset Management, Olatunde Amolegbe, attributed the generally stronger corporate results to the impact of economic reforms, noting that several major companies had delivered impressive performances in both revenue and profit.
He said the earnings reports suggested that policy changes were beginning to translate into improved business outcomes.
“They have been pretty impressive so far. Most of the bellwether companies have had very strong quarters with very impressive top and bottom lines. It looks like the macroeconomic reforms are having the desired impact on corporate performance. My expectation is that the market will react positively to these earnings reports,” Amolegbe said.
Similarly, the Managing Director of APT Securities and Funds, Kasimu Kurfi, said the performance of listed companies reflected the broader effects of government policies on the economy.
He noted that the NGX All-Share Index had gained more than 64 per cent by the end of October 2026, describing the market’s performance as significant compared with its historical record.
Kurfi expressed optimism that improved corporate earnings could support further market gains before the end of the year.
“With the third-quarter results, more positive outcomes are likely expected by the end of the year,” he said.
However, Managing Director of HighCap Securities, David Adonri, highlighted differences in performance across sectors, particularly between banking and companies in the productive economy.
He explained that banks had benefited significantly from the government’s demand-management policies between 2023 and 2025, which contributed to exceptional profit growth across the sector.
According to him, the shift towards supply-side economic policies is changing the pattern of corporate performance, with banks facing pressure on profits while companies in the real productive sector are recording stronger earnings.
Adonri said the changing economic environment was also reflected in stock market movements, as banking shares came under pressure while equities in productive sectors advanced.
He expects real-sector stocks to play a greater role in supporting market performance beyond the fourth quarter of 2026, although he warned that political uncertainty surrounding the forthcoming general election could influence investor sentiment.
The analysts’ assessments suggest that improving corporate earnings could provide support for the equities market, although the extent to which stronger financial results translate into investor returns will depend on company valuations, sector performance and broader economic conditions.
