The Nigerian equities market has undergone a notable reshuffle following the Half-Year 2025 index review conducted by Nigerian Exchange Limited, with adjustments spanning flagship, ethical, and custom benchmarks across the exchange.
The changes, which officially took effect at the opening of trading on Tuesday, 1 July 2025, reflect the Exchange’s routine semi-annual rebalancing process designed to ensure that its indices remain aligned with real-time market performance, liquidity conditions, and investability standards.
According to the Exchange, the exercise is grounded in its index methodology, which prioritises transparency and representativeness for investors tracking Nigeria’s listed equities.
NGX 30 Index Sees High-Profile Swaps in Mid-Year Adjustment
The most closely watched movement came from the flagship NGX 30 Index, which tracks the 30 most capitalised and actively traded companies on the market.
In this round of review, consumer goods heavyweights NASCON Allied Industries Plc and Unilever Nigeria Plc were added to the index. Their inclusion signals improved standing in either liquidity or market capitalisation metrics over the review period.
On the flip side, energy player Oando Plc and conglomerate Transnational Corporation Plc exited the benchmark, reflecting the index’s continuous recalibration based on performance and tradability.
The NGX described this periodic adjustment as essential to maintaining the credibility of its benchmark indices, which are widely used by fund managers and institutional investors.
As the Exchange put it, the process is part of a broader effort to ensure indices remain “investable and representative” of prevailing market conditions.
Sector Indices Hold Steady With No Changes Recorded
Despite the movement in the flagship index, several key sector-based benchmarks remained unchanged throughout the review cycle.
Indices such as the NGX Banking Index, NGX Insurance Index, NGX Industrial Index, NGX Consumer Goods Index, and NGX Oil & Gas Index all retained their existing constituents without any additions or removals.
Similarly, pension-focused benchmarks — the NGX Pension Index and NGX Pension Broad Index — also maintained their compositions unchanged, suggesting stability in their underlying selection criteria during the period under review.
Ethical and Thematic Indices See Selective Rebalancing
More movement was observed in ethical and co-branded indices, where constituent changes reflected shifting corporate eligibility across investment themes.
Within the NGX Lotus Islamic Index, both Nestlé Nigeria Plc and Cadbury Nigeria Plc were added, while NASCON Allied Industries Plc was removed.
In the Afrinvest Bank Value Index, Stanbic IBTC Holdings Plc was newly included without any corresponding exit.
The Afrinvest Dividend Yield Index experienced broader changes, welcoming Seplat Energy Plc, Fidelity Bank Plc, Stanbic IBTC Holdings Plc, Custodian Investment Plc, and Nigerian Aviation Handling Company Plc, while removing Access Holdings Plc.
Meristem Indices Undergo Broad Structural Realignment
The Meristem-branded indices recorded some of the most extensive revisions in this cycle, reflecting evolving valuation and dividend dynamics across listed equities.
The Meristem Growth Index added Eterna Plc and PZ Cussons Nigeria Plc but removed several names, including BUA Cement Plc, GTCO (Guaranty Trust Holding Company Plc), AXA Mansard Insurance Plc, Nigerian Aviation Handling Company Plc, and NASCON Allied Industries Plc.
Meanwhile, the Meristem Value Index underwent a significant overhaul, admitting Chemical and Allied Products Plc, Honeywell Flour Mills Plc, Dangote Cement Plc, Linkage Assurance Plc, Livestock Feeds Plc, NASCON Allied Industries Plc, Okomu Oil Palm Company Plc, and TotalEnergies Marketing Nigeria Plc.
These additions replaced several outgoing constituents, including Lafarge Africa Plc, Wema Bank Plc, Ecobank Transnational Incorporated, Guinness Nigeria Plc, and Zenith Bank Plc.
What the Rebalancing Means for Investors
All NGX indices are constructed using a market capitalisation methodology and are reviewed twice yearly — on the first business day of January and July — in line with global benchmark standards.
The Exchange described the exercise as part of what it informally calls “housecleaning,” a process that ensures only qualifying stocks based on liquidity and size remain in premium indices.
As the report explains, “The NGX 30 Index is the flagship indicator for the Nigerian Exchange. It tracks the top 30 most valuable and highly traded (liquid) companies listed on the exchange.”
It further added that the benchmark functions much like global equivalents, representing “Nigeria’s version of the Dow Jones or S&P 500” in reflecting the health of the blue-chip segment of the market.
Beyond scheduled reviews, the Exchange noted that it retains discretionary powers to adjust indices in response to unusual corporate actions such as mergers, acquisitions, delistings, or trading suspensions that may occur before the next scheduled rebalance.
This ensures that the indices remain accurate and reflective of actual market conditions between review periods.