Geregu, Ellah Lakes, 8 others lose N922bn in market value as investors bet on bank, industrial stocks

Nearly N922 billion has been wiped off the combined market value of Geregu Power Plc, Ellah Lakes Plc and eight other listed companies in 2026 as investors increasingly shift capital toward banks, industrial firms and consumer goods companies delivering stronger earnings growth, higher liquidity and more predictable returns.

An analysis of trading data by BusinessDay shows that 10 listed companies have collectively lost about m N921..9 billion in market value between January 2 and July 24, largely because their share prices  fell below where they started the year.

The biggest drag came from Geregu Power Plc, whose market capitalisation declined by N789.5 billion, accounting for nearly 86 percent of the total decline among the selected companies. This was followed by Ellah Lakes Plc with N27.8 billion loss in market value.

Sovereign Trust Insurance Plc shed N26.2 billion. UPDC Plc lost N25.1 billion, and Coronation Insurance Plc erased N23 billion from its market capitalisation.

Sunu Assurances Nigeria Plc recorded a decline of N11 billion, while Lasaco Assurance Plc lost N8.1 billion. Royal Exchange Plc, Guinea Insurance Plc and Aluminium Extrusion Industries Plc completed the list, with market value declines of N4.7 billion, N3.9 billion and N2.6 billion, respectively.

The figures highlight how even companies that have recorded positive price appreciation from their recent lows remain significantly below their opening-year valuations, resulting in substantial erosion of shareholders’ wealth.

For institutional investors, market capitalisation remains one of the clearest indicators of how much value has been created or destroyed over time.

Geregu loses nearly N790bn

Geregu Power’s decline dwarfs every other stock on the list.

The company’s market value dropped from N2.85 trillion at the beginning of the year to N2.06 trillion year-to-date, wiping out almost N790 billion.

The decline comes after Geregu’s share price fell from N1,141.50 per share in the beginning of the year to N825.7 as at close of trading on Friday, July 24.

The drop reflects a broader reassessment of risks by investors, who are increasingly wary of macroeconomic headwinds and structural challenges within Nigeria’s power sector, positioning the company among the worst performing large-cap stocks on the NGX for last week.

The company financial statement highlights consistent pressure from unpaid obligations within the electricity value chain.

As of September 2025, receivables stood at N170 billion net of impairments, with gross exposure estimated at N500 billion.

Ellah Lakes, on the other hand struggles to sustain momentum with its share price falling from N13.4 per share on January 2nd to N8.85 on Friday.

Ellah Lakes lost N27.8 billion in market value during the period.

The agribusiness company has continued to attract speculative interest because of its expansion plans, but investors remain cautious over the pace at which those investments can translate into sustainable earnings.

Nigeria’s agriculture sector continues to face high production costs, insecurity, logistics bottlenecks and foreign exchange pressures, limiting investor appetite for many listed agricultural companies.

In the 2025 full year financial statement, the company reported a net loss of N3.86 billion for the period ending December 31, 2025, as high administrative, personnel, and expansion costs outweighed initial commercial gains.

In the first three months of 2026, Ellah Lakes reported a sharp increase in revenue to N359.49 million and narrowed its net loss to N273.42 million for the first quarter ended March 31, 2026.

Without consistent earnings growth, institutional investors have largely preferred larger consumer goods and industrial names that offer stronger visibility on profits.

Insurance stocks remain undervalued

Five insurance companies emerge among the biggest market-cap losers: Sovereign Trust Insurance, Coronation Insurance, Sunu Assurances Nigeria, Lasaco Assurance, Royal Exchange, and Guinea Insurance.

Combined, they lost more than N76 billion in market value.

Although insurance stocks have enjoyed intermittent rallies this year following recapitalisation expectations, the sector continues to trade at relatively low valuations.

Analysts attribute this to persistent weak investor confidence, relatively low profitability compared with banks, thin trading volumes, concerns over underwriting margins, and uncertainty around the pace of industry consolidation.

Many institutional investors continue to prefer banking stocks, whose earnings have been boosted by high interest rates, treasury income and improved return on equity.

Property sector under pressure

UPDC shed over N25 billion in market value despite signs of recovery in Nigeria’s real estate sector.

The property market continues to grapple with elevated construction costs driven by inflation, high interest rates and expensive building materials.

For the first quarter of 2026, UPDC Plc Group reported a significant 22% increase in revenue, reaching N2.66 billion compared to N2.18 billion in the same period of 2025. Despite this strong top-line growth, operating profit declined to N218.2 million from N345.1 million in Q1 2025, suggesting pressure on margins or increased operating expenses.

Profit after taxation for the period stood at N402.6 million, a decrease from the N481.7 million recorded in the prior year. This resulted in a Basic Earnings Per Share (EPS) of 2 Kobo, down from 3 Kobo in Q1 2025.

Why investors are moving elsewhere

Market operators say capital rotation has become one of the defining themes of the NGX in 2026.

Rather than chasing speculative names, investors have concentrated their funds in companies delivering: strong earnings growth; consistent dividend payments, high liquidity, better corporate governance, and clearer expansion strategies.

The banking sector has attracted substantial institutional flows following record earnings, while consumer goods manufacturers have benefited from easing foreign exchange volatility and improved pricing power.

Industrial stocks, particularly cement producers, have also remained attractive because of infrastructure spending expectations and resilient margins.