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Nigeria remains at the forefront of Africa's M&A landscape, sustaining strong deal activity and reinforcing its role as one of the region's most active markets. Despite broader deal volumes softening across West Africa, Nigeria continues to anchor regional M&A, supported by fiscal reforms, regulatory liberalisation and sustained investor appetite for strategic opportunities across multiple regulated and non-regulated sectors. This positioning reflects not only Nigeria's scale but the increasing sophistication of its regulatory and transactional environment.
Nigeria's capital-importation profile highlights renewed investor engagement, albeit with measured caution. In Q1 2025, total capital inflows reached approximately USD 5.64 billion – a year-on-year increase of about 67% – with portfolio investment representing more than 90% of this amount and the banking sector attracting over half of all inflows. Although macro-economic headwinds, supply-chain disruptions and inflationary pressures continue to affect investor sentiment, National Bureau of Statistics data underscores underlying confidence in Nigeria's fundamentals. This resilience reflects the continued relevance of Nigeria's core sectors (such as banking, digital infrastructure and services) and the gradual early impact of structural reforms aimed at stabilising the business environment.
Nigeria's economic activity is increasingly shaped by non-oil sectors. Services continue to dominate national output, while agriculture, ICT, telecommunications, financial services, real estate, life sciences and entertainment remain strong contributors. Recent transactions across construction materials, energy, pharmaceuticals and creative industries – including Saint-Gobain's acquisition of Fosroc's global construction-chemicals business (with Nigerian elements), Seplat Energy's acquisition of ExxonMobil's offshore shallow-water assets, Universal Music Group's acquisition of Mavin Global, and Micro Labs' acquisition of Swiss Pharma Nigeria – illustrate both the breadth of commercial activity and Nigeria's embedded role within global value chains. They also illustrate the increasing sophistication of cross-border participation in Nigerian assets, spanning both traditional and emerging industries.
While FDI remains comparatively subdued relative to short-term portfolio flows, key real-economy sectors – including agriculture, ICT, digital infrastructure, clean energy and real estate – continue to demonstrate strong underlying potential.
The M&A landscape continues to show momentum, supported by ongoing macroeconomic reforms such as FX market liberalisation and interest-rate realignment. Nigeria's continued attractiveness is further reinforced by an evolving regulatory framework, a maturing professional-services ecosystem, and its strategic positioning within AfCFTA.
Originally published by Bowmans Africa M&A Guide and 2026 Forecast
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