Nigerian private equity: Weighing the risks and rewards

Author: | Published: 8 Jul 2019

Reports of private equity successes and challenges arguably stand in sharper contrast in Nigeria than in comparable emerging markets. Folake Elias-Adebowale, Ozofu 'Latunde Ogiemudia and Christine Sijuwade of Udo Udoma Belo-Osagie examine the balancing act investors need to perfect, the impact of recent regulatory developments, and reasons for optimism

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Nigeria remains open for private equity (PE) business. With its recovery from a "technical economic recession", stabilised democracy and large consumer class, among other factors, underpinning continuing interest in the consumer goods, financial services, energy, pharmaceuticals, bio and medicals and industrial and chemicals sectors, analysts discern positive trends in areas including agribusiness, education, health, construction and infrastructure. While legal and compliance challenges continue to feature as strategically important, market developments suggest that on balance, the overall outlook for PE fundraising and deal activity in Nigeria remains positive.

There is a dearth of discrete laws and regulations addressing the...