NIGERIA Law and Practice Contributed by: Chinyerugo Ugoji, Tiwalola Osazuwa, Onyinyechi Chima and Edidiong Antai, ǼLEX
ǼLEX 4th Floor, Union Marble House 1 Kingsway Road, Falomo Ikoyi Lagos Nigeria
Tel: +234 1 279 3367 8 Email: lagos@aelex.com Web: www.aelex.com
1. Trends 1.1 M&A Market
Macroeconomic reforms implemented over the past two years, including foreign exchange market lib - eralisation measures, have contributed to relatively improved currency stability compared with the vola - tility experienced between 2022 and 2023. This has supported valuation negotiations and facilitated more predictable transaction structuring. Overall, while aggregate deal volumes may not match the peaks observed in prior years, the market remains active, with investors demonstrating greater selectiv - ity, structured risk allocation and enhanced regulatory sensitivity. 1.2 Key Trends In 2025, Nigeria’s M&A landscape was shaped by strategic consolidation and repositioning across key industries. In the energy and infrastructure space, continued portfolio optimisation and asset transfers to indige - nous and specialised investors remained prominent. Heirs Energies’ acquisition of a substantial stake in Seplat Energy reflects ongoing consolidation by domestic operators. Similarly, Transgrid Enerco Lim - ited’s acquisition of a majority stake in Eko Electric - ity Distribution Company indicates continued inves - tor appetite in power distribution assets, particularly where operational restructuring may enhance effi - ciency and returns. Together, these transactions illus - trate a broader shift towards increased participation in strategic infrastructure assets.
Nigeria’s M&A market in 2025 reflected a more meas - ured environment compared with 2024. While 2024 saw robust deal flow, particularly large upstream oil and gas divestments, and sustained activity in tech - nology and financial services, 2025 has been charac - terised by more cautious capital deployment, height - ened due diligence scrutiny and longer transaction timelines. Energy transactions have continued, driven largely by the divestment programmes of international oil companies and the consolidation strategies of indig - enous operators. In financial services, activity has been increasingly influenced by the recapitalisation programme introduced by the Central Bank of Nige - ria (CBN) in 2024, with banks pursuing equity raises, strategic investors and, in some cases, merger dis - cussions in advance of the 31 March 2026 compliance deadline. Technology and fintech transactions have contin - ued, albeit at more measured levels. Across sectors, investor appetite has shifted towards businesses with clearer revenue models, robust regulatory compliance frameworks and credible profitability timelines. In the technology and fintech space, this has translated into more structured minority investments, rather than expansion-led transactions focused primarily on rapid user growth.
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