Private equity investments in Nigeria experienced a remarkable surge of 321.8% in the first quarter of 2024, propelled predominantly by significant transactions in the energy and educational technology (edtech) sectors. According to DealMakers Africa, these investments totaled $2.59 billion, a substantial increase from $614 million in the same period last year and surpassing the $1.76 billion recorded in Q1 2022.
This surge reasserts Nigeria’s prominence as a leading destination for private equity on the African continent, reclaiming its position after a temporary shift to Zimbabwe in the previous year. The report underscores Nigeria’s central role in West Africa’s overall transaction value of $2.6 billion, driven by 20 major deals.
The largest transaction involved Shell’s sale of its onshore assets to Renaissance Africa Energy for $2.4 billion, reflecting a strategic move by major international oil companies to optimize portfolios and focus on core operations.
Jens Kengelbach, managing director at Boston Consulting Group, highlighted Nigeria’s attractiveness to global acquirers, alongside emerging economies like Morocco, Egypt, and Kenya. This trend is bolstered by reforms and growing interest in sectors beyond traditional oil and gas, including renewable energy and infrastructure.
In parallel, foreign investments in Nigeria surged to a four-year high of $3.38 billion in Q1 2024, supported by Central Bank reforms aimed at enhancing market clarity and investor confidence amidst economic challenges.
The period also witnessed significant funding into innovative startups and initiatives. For instance, fintech platform Cleva secured $1.5 million in pre-seed funding, while Chapel Hill Denham allocated $7.4 million for d.light’s off-grid solar program.
Looking forward, Nigeria’s economic outlook remains optimistic, with continued growth expected in private equity and foreign investment across diversified sectors, supported by ongoing reforms aimed at strengthening the business environment.
Photo source: Google
By: Montel Kamau
Serrari Financial Analyst
9th July, 2024
Article and News Disclaimer
The information provided on www.serrarigroup.com is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
www.serrarigroup.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
In no event will www.serrarigroup.com be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.
The articles, news, and information presented on www.serrarigroup.com reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.
The content on www.serrarigroup.com may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, www.serrarigroup.com takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.
By using www.serrarigroup.com, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website.
www.serrarigroup.com, reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.
Serrari Group 2023
