From oil to telecoms to banking, here’s where market analysts think investors should be paying attention this year.
The Nigerian stock market has had a turbulent but opportunity-filled year, with sharp swings driven by banking reforms, telecoms expansion, and strong performances in the consumer goods and agriculture sectors.
To make sense of it, we drew on TrustBanc Financial Group’s equity market report for August, highlighting the stocks they believe could define the rest of 2025 and shape 2026.
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We also spoke with Mohammed Saidu, team lead of research and advisory at TrustBanc, financial market analyst Olumide Adesina and investment manager Efe Ogunnaiya, for their take on what’s driving the performance of these stocks, and what could knock them off course.
Grounded in research and analysis, these stock picks reflect sectors showing resilience, companies trading below their potential, and a few that have already surged but may still have room to grow. Here are the stocks to watch, and why experts think they matter.
Top 10 Nigerian Stocks to Watch in 2025 & Beyond
Oil & Gas
1. Aradel Holdings
TrustBanc spotlights Aradel, one of Nigeria’s rising independent oil companies, as a key stock to watch. In Q2 2025, its share of profits from associate companies grew by more than 600% year-on-year, over six times more money than it earned in Q2 2024.
This is primarily driven by its participation as a shareholder in the Renaissance Africa Energy Consortium, which acquired Shell Petroleum Development Company (SPDC) in March 2025.
Its profit margins (the percentage of funds kept after costs) also jumped from 49% in Q2 2024 to 67% in Q2 2025, which is unusually high in the oil sector.
Translation? Aradel is squeezing more value out of every barrel it sells. If this continues into the rest of 2025, investors could change their tune on a stock that had been underperforming in the market.
Telecoms
2. MTN Nigeria
MTN isn’t just about your SIM card; it’s also Nigeria’s biggest telecom giant and an infrastructure powerhouse.
In the first half of 2025, MTN pumped over ₦560 billion — almost triple its usual spending — into expanding its infrastructure.
That investment is paying off.
Revenue grew 54% year-on-year, and Q2 profits shot up 300% compared to the previous quarter. In simple terms, MTN is doubling down on data demand, betting that Nigerians will only use more internet and mobile services in the years ahead.
TrustBanc highlights MTN as a long-term beneficiary of Nigeria’s booming data and fintech ecosystem.
Agriculture
3. Ellah Lakes
Ellah Lakes is a wild card. Initially known for farming, the company has expanded into agribusiness with bold plans that investors are rewarding. Its stock price jumped over 340% this year alone, making it one of the best performers on the market.
TrustBanc highlights Ellah Lakes for its newly-commissioned 1,500-hectare crude Oil Palm mill. Also, Ellah Lakes is raising funds to expand operations, positioning it as a long-term agriculture and agribusiness hybrid play.
4. Presco Plc
Presco is Nigeria’s palm oil king, and its stock performance proves it. So far, in 2025, Presco’s share price has risen by over 200%, as local palm oil demand and exports soared.
TrustBanc points out Presco’s past success and ongoing fundraising efforts to expand operations. The growth story may not be over yet.
Bonus: Okomu Oil
Another palm oil player, Okomu Oil, has also delivered impressive returns (+129% this year). Investment manager Efe Ogunnaiya calls it a “stability stock”, not as explosive as Presco, but steady and reliable long-term.
TrustBanc’s analysis highlights that with commodity cycles, exports, and food security initiatives all aligning, agriculture is quietly evolving into one of Nigeria’s most reliable value plays.
Cement
5. Lafarge Africa (WAPCO)
Nigeria runs on cement, and Lafarge (also called WAPCO) is a heavyweight. After global giant Holcim announced it was selling its stake in Lafarge Africa, questions about its future listing were raised. But its recent results tell another story: over ₦200 billion in profit before tax in Q2 alone.
While construction slows during the rainy season, Lafarge’s dominance and growing market share make it a reliable long-term pick that TrustBanc says remains central to Nigeria’s growth story.
Consumer Goods
6. NASCON Allied Industries
A Dangote Group company, NASCON, produces salt, seasonings, and other staples you use daily. In the first half of the year, it earned ₦5.77 per share, which is strong compared to its competitors.
More importantly, TrustBanc notes NASCON trades “cheap” by market standards, with a price-to-earnings ratio (P/E) of just 7.7x, compared to the sector average of 13.7x.
Think of P/E as the number of years it would take for a company’s earnings to pay back its stock price; lower means more potential value. Investors like NASCON because everyday essentials are less vulnerable to economic swings.
7. Cadbury Nigeria
Cadbury has staged a comeback. In H1, it delivered ₦4.46 earnings per share, also trading below the industry average in terms of valuation. Like NASCON, its stock is affordable relative to its earnings, giving it “room to grow, which TrustBanc sees as a buying opportunity.
Bonus: Nigerian Breweries
As Efe Ogunnaiya put it, “economy good, Nigerians drink; economy bad, Nigerians drink.” Beer is often seen as recession-proof, and Nigerian Breweries remains one of the most resilient consumer plays.
Insurance
8. NEM Insurance
Insurance is heating up thanks to the new Insurance Act signed by the President, which forces more businesses and landlords to carry policies. NEM is one of the sector leaders, and its numbers prove it: a 24% return on equity (meaning it’s making strong profits relative to shareholder investment) and one of the best earnings-per-share ratios in the industry.
TrustBanc highlights it as undervalued compared to peers; it trades cheaper, making it attractive to investors.
Bonus: Custodian Plc
Trustbanc also highlights Custodian, another strong insurance player positioned to benefit from the sector shake-up. It’s less flashy than NEM but worth watching out for.
Banking
9. Wema Bank
Wema Bank has been a surprise performer. Its stock has delivered one of the best year-to-date performances in the sector, attracting more and more investors. It’s also known for growth in digital banking (think ALAT) and active SME support.
TrustBanc includes Wema as a forward-looking bank that reflects both growth and innovation.
10. GTCO (Guaranty Trust Holding Company)
GTCO is a household name in Nigerian banking. Even with the noise around recapitalisation and regulatory changes, it remains a “value play”, meaning the stock price looks cheap compared to its long-term potential. TrustBanc lists it alongside Fidelity, Zenith, and UBA as banks worth holding for 2026 and beyond.
Bonus pick: Power
Transcorp Power (TransPower)
If you like the energy play but want something a bit different, Investment Manager Efe Ogunnaiya calls Transcorp Power a solid alternative to Geregu Power. It’s smaller but well-positioned in Nigeria’s electricity space, which is slowly attracting more investor attention.
How Experts Pick Their Stocks
Mohammed Saidu, team lead at TrustBanc Financial Group, says the first thing he looks at is growth. This means whether a company’s sales (revenue, the “top line”) and profits (earnings, the “bottom line”) are actually moving up. After that, he focuses on the Price-to-Earnings (P/E) ratio, basically, how much investors pay for every ₦1 profit a company makes. If a stock trades at a P/E far lower than its industry average, it could be undervalued.
Once that box is ticked, Saidu also checks return on equity (ROE) and return on assets (ROA); simple measures of how well a company uses its money to generate more money. A healthy profit margin seals the deal.
Investment manager Efe Ogunnaiya uses a broader perspective. She examines company fundamentals and the economy: Where does long-term growth come from? What government policies could help or hurt entire sectors?
Financial market analyst Olumide Adesina prefers a hybrid approach. He uses fundamentals like P/E ratios but also applies technical analysis, studying support and resistance levels (essentially price “floors” and “ceilings”) to spot potential breakouts or pullbacks and gauge a stock’s value against its peers.
Risks & Pitfalls for Investors
Of course, it’s not all upside. Saidu warns that Nigeria’s heavy reliance on oil revenues makes the market vulnerable. If oil prices fall well below the government’s budget assumptions, “the whole economy feels it, and so do investors.”
He also points out that knowledge gaps are a significant risk. “Many Nigerians avoid the market because they don’t understand it well enough,” he says. “But if you educate yourself, check corporate disclosures on NGX, and follow the numbers, opportunities are there.”
Adesina adds another caution: markets themselves can overheat. “Market indicators showed a significant amount of these stocks are trading at an ‘overbought’ position,” which increases the risk of corrections if earnings disappoint or the country’s economic fundamentals change.”
This essentially means investors have already pushed the stock prices up a lot, so they may be due for a pause or a small drop if earnings or market conditions don’t keep up.
Balancing Growth and Stability
How should everyday investors balance the chase for growth with the need for safety?
Ogunnaiya advises you never to put all your eggs in one basket. “Keep at least 10% of your portfolio in fixed income (like bonds or treasury bills). Don’t let any single stock or sector take up more than 25% of your holdings,” she says. For growth, focus on sectors everyone relies on: banking, consumer goods, agriculture, etc. For stability, look at dividend-paying companies and fixed income assets.
Adesina agrees but frames it in the context of asset allocation: spreading your money across stocks, bonds, real estate, and cash depending on your goals and risk appetite.
Adesina also highlights the banking and insurance sectors as the ones to watch.“The banking industry amid the recapitalisation exercise shows huge promise. The reforms in the Nigerian insurance industry have triggered inflows and interest, making it the best-performing sector on the NGX,” he said.
Saidu is also clear: banks will always be central to Nigeria’s market story because “everything in the country revolves around them.” But he also considers agriculture, consumer goods, telecommunications, technology, and oil & gas as long-term growth plays.
