Mergers and acquisitions in Nigeria exceeded USD 2.6 billion in Q1 2024

At the start of the year, the Nigerian mergers and acquisitions (M&A) market recorded deals worth over $2.6 billion in the first quarter of 2024, marking a significant increase in transaction activity compared to previous periods.

The data, sourced from industry reports and financial disclosures, shows a wide range of M&A transactions across sectors including telecommunications, banking, energy and consumer goods.

The increase in mergers and acquisitions is a sign of growing investor confidence in the Nigerian economy and business environment despite global economic uncertainties.

The report also included details of private equity deals that took place in Africa during the period. It noted that 62 private equity deals worth approximately $303.3 million took place in Africa during the quarter.

Nigeria had 10 private equity deals worth around $40.25 million. However, when it comes to private equity, Kenya led the African continent with 12 deals worth $44 million.

READ ALSO: CBN to impose sanctions on banks and BDCs rejecting old dollar notes

The largest transaction in Nigeria was the sale of Shell assets for $2.4 billion to a consortium of five companies called Renaissance, announced on January 16.

The main factors influencing a significant number of mergers and acquisitions are strategic expansion, market consolidation and companies’ efforts to diversify their portfolios in the face of changing market dynamics.

The telecommunications sector, in particular, has seen significant consolidation efforts aimed at increasing operational efficiency and expanding service offerings.

Banking and financial services also played a major role in the M&A market, with deals being structured to strengthen market position and capitalise on emerging opportunities in the growing financial technology (fintech) ecosystem in Nigeria.

Experts attribute the rise in M&A activity to favorable regulatory reforms, improving macroeconomic conditions and growing investor appetite for high-growth sectors in Africa’s largest economy. Moreover, the resilience shown by Nigerian businesses amid global challenges has boosted investor confidence and attracted strategic partnerships and acquisitions.

Looking ahead, stakeholders expect continued momentum in the Nigerian M&A market, driven by ongoing sector reforms, technological advances and strategic initiatives aimed at unlocking value and driving sustainable growth.

As businesses navigate the dynamic economic landscape, stakeholders should stay abreast of emerging opportunities and regulatory changes shaping the M&A landscape in Nigeria. To gain more information on changing M&A trends and their implications, it is advisable to continuously monitor financial news sources and industry reports.