The findings of the report reveal key learnings from the dealmaking process, the challenges that dealmakers have had to overcome, and the practices that have delivered success.
While the global downturn in oil prices hit Nigeria hard, the country is still very much open for business. Investors are seeing new growth opportunities across a variety of sectors in the country. And for those companies willing to take a more long-term approach, there are outstanding opportunities in Africa’s largest economy.
As the continent’s most populous country, international corporates and private equity firms see Nigeria as an attractive destination not only in itself but also as a base for expansion across the West African region.
The country’s population is young and fast-growing and companies are seeking to capture rising consumer spend. Nigeria is expected to remain Africa’s largest consumer market as incomes continue to rise, with fast-moving consumer goods and food and beverages companies set to benefit. Meanwhile, an under-developed financial services sector also holds significant growth potential.
Beyond demographics, there are other advantages for foreign businesses investing in Nigeria. Domestic companies trade at appealing valuations and export-based businesses have become more competitive as a result of the naira’s weakness.
However, there still exist challenges that need to be overcome. Under-developed infrastructure serves to push up operating costs, while a lack of transparency can cause unwanted delays in the dealmaking process. Despite these obstacles, the country offers huge potential for investors willing to navigate the risk.
This report brings together unique insights from global acquirers who have conducted M&A deals in Nigeria. The survey analysed experiences of senior business executives in key industries who have been involved with one or more deals in the country over the past four years. The findings of the report reveal key learnings from the dealmaking process, the challenges that dealmakers have had to overcome, and the practices that have delivered success.
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