NIGERIA Trends and Developments Contributed by: Tosin Ajose, Izuchukwu Ubadinma, Deborah Leshi and Precious Omope, DealHQ Partners
verge around bankable multi-asset acquisitions over the next 12 months, boasting a tighter, higher quality deal pipeline. Most transactions are likely to involve scalable, commercially viable projects supported by blended finance structures aligned with secure, bank- able offtake plans. As FX stabilises and inflationary pressure eases, investors are expected to shift away from the current defensive restructuring posture to a more growth-ori- ented direction, specifically in gas-to-power, renewa- bles, midstream logistics and transport infrastructure. Diversified asset portfolios will become increasingly desirable to investors and financiers, driving a likely surge in platform deals across these sectors. Lenders will likely intensify demands for credit enhancements and currency risk hedges, with robust risk-sharing protocols amongst contracting parties. Financing will favour cash-generating assets in the near term, whereas longer tenured, currency-hedging structures will underpin strategic investments. On the policy side, investors will be relying on the gov- ernment to provide predictable rules around currency repatriation and access to FX for debt service, and local content rules will define procurement and supply. Further clarity on the implementation of the Electric- ity Act and the PIA, coupled with the stabilisation of the sub-national electricity regulators, is expected to unlock new acquisition/project finance windows, sup- porting domestic capital mobilisation.
321 CHAMBERS.COM
Powered by FlippingBook