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Private Equity in Nigeria
An Overview of Nigerian Venture Capital and Private Equity
Private Equity in Nigeria
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CONTENT
EXECUTIVE SUMMARY 3
NIGERIA COUNTRY ANALYSIS 5
TABLES AND EXHIBITS 7
Private Equity in Nigeria
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Executive Summary1
Nigeria is facing an uncertain future as outbreaks of ethnic and religious violence
continue to place strains on Africa’s most populated country. With the 2003 elections
approaching, the continuing battle amongst incumbent politicians and between competing
ethnic and regional groups is likely to intensify. Such an environment will test Nigeria’s
fragile democracy, which has never witnessed a hand over from one civilian government
to another. The Nigerian government is expected to continue with economic
liberalization, at a slow pace. The government’s main challenges will be to curb
spending, increase the pace of its privatization program, liberalize domestic fuel
subsidies, improve the nation’s infrastructure and improve homeland security.
The challenges and constraints that private equity investors face in Nigeria can be
grouped into three areas:
· Macro/country factors,
· Industry-specific factors,
· Company-specific factors.
These issues affect private equity investors in Nigeria differently depending on where
the investor is located, the focus of their fund, and the preferred investment stage of the
fund manager. It is important to have a strong understanding of the issues that private
equity investors in Nigeria face in order to develop strategies for a successful Nigerian
private equity industry in the future.
Venture Capit ...