Two prominent Nigerian blue-chip companies, Julius Berger Plc and Conoil Plc, have been removed from the Nigerian Exchange Limited (NGX) 30 Index after the NGX concluded its performance review for the first half of 2025. This significant reshuffling underscores the evolving nature of Nigeria’s capital market, driven by economic shifts, investor sentiment, and strategic repositioning by listed firms.
According to a press statement released on Tuesday, the review — which is part of NGX’s periodic restructuring of its major indices — aims to ensure that the NGX30 continues to represent the most liquid and capitalized stocks on the Nigerian Exchange.
The NGX30 Index, a benchmark for the Nigerian equities market, tracks the performance of the 30 most traded stocks in terms of market capitalization and liquidity. These companies are typically blue-chip firms, known for their financial stability, strong earnings, and dividend track record.
While Conoil and Julius Berger made their exit, the NGX announced the inclusion of Aradel Holdings Plc and Wema Bank Plc — two firms that have shown considerable market strength and investor confidence in recent months. Aradel Holdings has expanded aggressively in the oil and gas downstream space, while Wema Bank continues to gain traction, especially with its digital banking innovation and financial inclusion drive.
Speaking on the development, Jude Chiemeka, the Chief Executive Officer of the Nigerian Exchange, reiterated the Exchange’s commitment to strengthening the Nigerian capital market through innovation, transparency, and investor-focused reforms.
“NGX continues to blaze the trail on the path to becoming Africa’s foremost securities exchange with innovation and product development that deepen the market and boost liquidity, thus connecting Nigeria, Africa, and the world,” Chiemeka said.
The NGX30 Index serves as a bellwether for market activity and is tracked by fund managers and institutional investors to guide investment decisions. Inclusion in the index not only enhances a company’s visibility and reputation but often boosts investor interest and share price performance.
On the flip side, exclusion from the index could temporarily weaken investor confidence or signal a relative decline in trading performance or profitability. Market watchers have attributed Conoil and Julius Berger’s removal to fluctuating earnings performance, reduced trading volumes, and increased competition in their respective sectors.
The reshuffle is expected to reallocate investment flows, especially from exchange-traded funds (ETFs) and portfolio managers that track the NGX30. Aradel Holdings and Wema Bank may now see improved liquidity, increased institutional buying, and stronger brand positioning as a result of their inclusion.
According to financial analyst Seyi Ayoola, “This move validates the growth strategies of Aradel and Wema Bank. Investors will now reassess these companies with fresh optimism, while Julius Berger and Conoil may need to retool their strategies for re-entry into the index.”
The NGX30 review comes amid renewed interest in Nigerian equities, driven by macroeconomic reforms, moderated inflation, and improved foreign exchange market stability. The Nigerian capital market has seen significant gains in Q2 2025, with sectors like oil and gas, banking, and fintech taking the lead in both market capitalization and investor confidence.
The next index review is expected in December 2025. Until then, companies within the index will likely be under increased scrutiny as stakeholders anticipate how policies, corporate earnings, and investor trends will shape Nigeria’s market trajectory.