NGX Oil & Gas Index in Crisis: Worst-Performing Sector Plunges -13.20% in 2025 Amid Market Boom!
Key Highlights:
- The NGX Oil & Gas Index has slumped -13.20% in the first four months of 2025, making it the worst-performing sector on the Nigerian Exchange (NGX).
- Despite an overall market growth of +2.79%, the Insurance (-6.10%) and Industrial (-5.80%) indices also struggled.
- A shocking reversal from 2024, when the Oil & Gas sector soared +170%, outperforming banking and consumer goods.
What’s Driving the Decline?
1️⃣ Investor Caution:
- Profit-taking after a massive 2024 rally.
- Dividend uncertainty: Investors fear weak payouts from key players like Oando, Aradel, and Conoil.
2️⃣ Stock-Specific Woes:
- Oando (-36%) crashed after a controversial 3-year bonus share plan angered shareholders.
- Aradel Holdings (-25.1%) faced a market correction after its high-priced NGX debut.
- MRS Oil (-28%) & Conoil (-14.5%) also dragged the index down.
3️⃣ Bright Spots?
- Eterna Plc (+106%) and TotalEnergies (+1%) defied the trend with gains.
- Seplat’s stock remained flat at ₦5,700 per share.
Historical Context: A Rollercoaster Sector
- 2018-2022: Consistent losses (**-8.61% in 2018, -14.6% in 2019, -13.03% in 2020, -8.73% in 2021**).
- 2023-2024: Brief recovery (**+98.3% in 2023, +170% in 2024**) due to government reforms.
- 2025: Back to negative territory, raising concerns over long-term stability.
Expert Insights: Why the Crash?
✔ David Adnori (Highcap Securities):
- *“Oando and Aradel’s steep drops killed the index. Investor confidence is shaky.”*
✔ Tajudeen Olayinka (Investment Banker):
- *“Aradel’s listing price was **too high**—this is a natural correction.”*
✔ Aruna Kebira (Globalview Capital):
- *“Investors are exiting early to avoid disappointing dividends.”*
What’s Next for Oil & Gas Stocks?
- Short-term: Volatility may persist as dividend announcements approach.
- Long-term: Sector recovery depends on strong earnings, policy stability, and investor sentiment.
- Opportunity? Bargain hunters might eye Eterna, TotalEnergies, or a rebound in Aradel.
Bottom Line: While the NGX overall is green, the Oil & Gas sector is bleeding. Investors, tread carefully!
Follow for more market updates! #NGX #OilAndGas #Investing #NigerianStocks
Key Highlights:
- The NGX Oil & Gas Index has slumped -13.20% in the first four months of 2025, making it the worst-performing sector on the Nigerian Exchange (NGX).
- Despite an overall market growth of +2.79%, the Insurance (-6.10%) and Industrial (-5.80%) indices also struggled.
- A shocking reversal from 2024, when the Oil & Gas sector soared +170%, outperforming banking and consumer goods.
What’s Driving the Decline?
1️⃣ Investor Caution:
- Profit-taking after a massive 2024 rally.
- Dividend uncertainty: Investors fear weak payouts from key players like Oando, Aradel, and Conoil.
2️⃣ Stock-Specific Woes:
- Oando (-36%) crashed after a controversial 3-year bonus share plan angered shareholders.
- Aradel Holdings (-25.1%) faced a market correction after its high-priced NGX debut.
- MRS Oil (-28%) & Conoil (-14.5%) also dragged the index down.
3️⃣ Bright Spots?
- Eterna Plc (+106%) and TotalEnergies (+1%) defied the trend with gains.
- Seplat’s stock remained flat at ₦5,700 per share.
Historical Context: A Rollercoaster Sector
- 2018-2022: Consistent losses (**-8.61% in 2018, -14.6% in 2019, -13.03% in 2020, -8.73% in 2021**).
- 2023-2024: Brief recovery (**+98.3% in 2023, +170% in 2024**) due to government reforms.
- 2025: Back to negative territory, raising concerns over long-term stability.
Expert Insights: Why the Crash?
✔ David Adnori (Highcap Securities):
- *“Oando and Aradel’s steep drops killed the index. Investor confidence is shaky.”*
✔ Tajudeen Olayinka (Investment Banker):
- *“Aradel’s listing price was **too high**—this is a natural correction.”*
✔ Aruna Kebira (Globalview Capital):
- *“Investors are exiting early to avoid disappointing dividends.”*
What’s Next for Oil & Gas Stocks?
- Short-term: Volatility may persist as dividend announcements approach.
- Long-term: Sector recovery depends on strong earnings, policy stability, and investor sentiment.
- Opportunity? Bargain hunters might eye Eterna, TotalEnergies, or a rebound in Aradel.
Bottom Line: While the NGX overall is green, the Oil & Gas sector is bleeding. Investors, tread carefully!
Follow for more market updates! #NGX #OilAndGas #Investing #NigerianStocks