• Home
  • Radio
  • TV
  • Advertisement
  • Disclaimer
  • Public Notice
    • Opinion
  • New Africa Business News
  • Contact
  • Log In
facebook
    • News
    • Business
    • Video
    • Entertainment
    • Sport
    • Jobs
    • Government
    • Immigrants
    • Investment
    • Gallery
      • Animal
      • Africa Map
    • NGO
    BREAKING NEWS
    East African Community Unveils Bioeconomic Strategy for the next Decade
    Africa Exchange Fair Trade Limited (AFEX) Expands Into Kenya, Target High Commodities Trading While Bolstering the Continent’s Food Security
    Ghana & Nigeria to Improve Cross-Border Trade
    Tanzania Seeks to Reach New Record Cashew Production by 2025
    Nestle Nigeria Capitalized Rural Women to enable Financial Capacity and boosting Standard of Living
    World Trade Organization published…Trade plays an Important facet in Access to Medical, Goods and Services
    African Development Bank Group President Calls for More Partnerships to Build Africa’s Social Infrastructure
    Ghana, Key Stakeholders: Sign a Renewable Energy Agreement Worth US$69.88 Million to Improve Access and Socio-Economic Development
    Africa Development Bank Approves $1.5 Billion Facility to Counter Food Crisis on the Continent
    Sh32 Billion of Phase 2 of Second Container Terminal of the Kenya Ports Authority at the Port of Mombasa is finished off and…commissioning in June of 2022

    Nigeria Recorded US$4.3 Billion in Corporate Deals for 2020

    Posted On 26 Jan 2021
    By : New Africa Business News, Staff Correspondent
    Comments: 12

    By Richard Adorsu-

    Photo Credit: NicePNG

    NEW AFRICA BUSINESS NEWS (NABN) Accra, Ghana– Nigerian owned businesses and businesses operating in Nigeria recorded over 106 corporate deals valued at over $4.3 billion (N1.63 trillion) in 2020. This is according to data compiled by Nairalytics the research arm of Nairametrics between January and December 2020 all at different stages of completion.

    Nigeria’s investment climate was precarious in 2020 as the global economy spluttered due to the COVID-19 pandemic. Nigeria’s GDP contracted by 3.62% (year-on-year) in real terms in the third quarter of 2020 after enduring a 6.1% contraction in the previous quarter, a development that was also attributed to the sustained shocks emanated from the continued spread of the virus as well as weak global oil prices.

    Foreign investor sentiments towards investing in Nigeria remained dampened due to the economic downturn stifling foreign portfolio inflows into the country. Data from the National Bureau of Statistics (NBS) shows that capital inflow into Nigeria was estimated at $8.61 billion between January and September 2020, compared to $20.19 billion
    recorded in the corresponding period, falling by 57% year on year.

    In addition, data obtained from the Nigerian Stock Exchange (NSE) reveals that about N226.13 billion was recorded from Foreign Portfolio Investors between January and November 2020 as domestic investors drove market turnover for the most part of the year.

    Despite the economic downturn, the economy witnessed several corporate deals consummated or under different stages of completion for the period ended December 2020. Corporate Deals Soar Corporates ranging from Startups to more matured businesses announced the closure or intent to secure funding through debt or equity-related deals amidst COVID-19 and the lockdown.

    From Silicon Valley to South Africa the deals flowed in from all over the world boosting the capital structure of most Nigerian firms. A total of 106 deals were captured in 2020 valued at $4.3 billion or N1.6 trillion occurred during
    the year with transactions ranging from raising equity, debt issuances, outright acquisitions, and divestments.

    While the tech community dominated most of the equity-related deals, more established companies focused on public offerings and debt securities such as commercial papers to raise money.

    It is no surprise that the largest deal captured in 2020 was the International Breweries rights issue valued at about N165 billion or $457 million.

    Dangote Cement was next to a bond issuance of about N150 billion, one of the largest private sector debt-related deals for the year. BUA Cement followed suit with its own debt issuance of about N100 billion.

    In terms of commercial papers, MTN raised N100 billion, the largest commercial paper issuance raised during the year.

    In the tech community, the $200 million acquisition of Paystack by Stripe was by far the largest deal directly affecting a Nigerian based tech-related company.

    Bolt, the cab-hailing tech firm operating across Nigeria and some African countries also got a significant funding boost raising about $100 million.

    While the Nigerian economy suffered one of the biggest drops in portfolio investments in 2020 there was a flurry of mega deals that boosted the capital structure of most firms operating in the country. Naira metrics research believes a large chunk of this funding will be spent in Nigeria as the country picks up from the economic ruin of 2020.

    The funds will flow into marketing budgets, capital expenditures, hiring of talents and executives, software acquisitions, etc. Naira metrics also expect a significant rise in corporate deals on the Nigerian Stock Exchange as more companies take advantage of low-interest rates to either raise cheaper debts or replace expensive debts with equity.

    Nigeria has a thriving deals market that provides a significant source of revenue to law firms, financial advisory firms, auditors, fund sourcing firms, and investors.

    Nigerian regulators also earn significantly from fees and taxes collected as the deals are consummated.

     

     

    For New Africa Business News Richard Adorsu Reports,  Africa Correspondent

    Facebook: newafricabusinessnews.com

    Email: Info@newafricabusinessnews.com

    AFRICA’S MOST READ AND FASTEST GROWING GLOBAL NEWSPAPER – www.newafricabusinessnews.com

    About the Author
    New Africa Business News Staff Correspondent
    • google-share
    Previous Story

    Multilateral Investment Guarantee Agency(MIGA) a retinue of the World Bank Group, prioritize the usage of Solar to Power Cell Towers in Liberia and Sierra Leone

    Next Story

    OVEX South Africa Associated with Prominent Cryptocurrency Corporations and Establishments in providing Excellent brokerage Services to Organizations and high net-worth persons across Africa

    12 Comments

    1. Liya January 26, 2021 at 2:57 am Reply

      Thank you for reporting. Corporate deals that are best for our businesses and governments, should be the goal. Addis Ababa Ethiopia. Liya

      • New Africa Business News, Staff Correspondent January 26, 2021 at 3:00 am Reply

        Thanks for reading, Africa’s fastest growing online newspaper. Please forward http://www.newafricabusinessnews.com

    2. Anna January 26, 2021 at 3:03 am Reply

      Thank you, Journalist Richard for the reports. Bristol, England. Anna

      • New Africa Business News, Staff Correspondent January 26, 2021 at 3:04 am Reply

        Thanks for reading, Africa’s fastest growing online newspaper. Please forward http://www.newafricabusinessnews.com

    3. Azuel January 26, 2021 at 3:09 am Reply

      Like is said, most of our countries in our great continent are growing steadily. I hope governments invest more money to education, healthy care and our great youths. Gaborone Botswana. Azuel

      • New Africa Business News, Staff Correspondent January 26, 2021 at 3:09 am Reply

        Thanks for reading, Africa’s fastest growing online newspaper. Please forward http://www.newafricabusinessnews.com

    4. Tony January 26, 2021 at 3:12 am Reply

      Thank you for signing me to NABN newsletters. Thank you. Mexico City Mexico. Tony

      • New Africa Business News, Staff Correspondent January 26, 2021 at 3:13 am Reply

        Thanks for reading, Africa’s fastest growing online newspaper. Please forward http://www.newafricabusinessnews.com

    5. Chima January 26, 2021 at 3:16 am Reply

      Family and hard work is Afrika. Thank you, Journalist Adorsu for the report. Lagos Nigeria. Chima

      • New Africa Business News, Staff Correspondent January 26, 2021 at 3:18 am Reply

        Thanks for reading, Africa’s fastest growing online newspaper. Please forward http://www.newafricabusinessnews.com

    6. Barbara January 26, 2021 at 5:12 am Reply

      We need more of such business, Africa is the future. Barbara in Accra, Ghana.

      • New Africa Business News, Staff Correspondent January 26, 2021 at 11:18 pm Reply

        Thanks for reading, Africa’s fastest growing online newspaper. Please forward http://www.newafricabusinessnews.com

    Leave a Reply Cancel reply

    *
    *

    Members Area

    • Members Log In

    RECENT

    POPULAR

    COMMENTS

    East African Community Unveils Bioeconomic Strategy for the next Decade

    Posted On 29 Jun 2022

    Africa Exchange Fair Trade Limited (AFEX) Expands Into Kenya, Target High Commodities Trading While Bolstering the Continent's Food Security

    Posted On 24 Jun 2022

    Ghana & Nigeria to Improve Cross-Border Trade

    Posted On 21 Jun 2022

    New Africa Business News, Person of the Year 2021-2022, Goes to African Women

    Posted On 29 Jan 2022

    New Africa Business News Award Medalist of Excellence as Africa's President of the Year 2020-2021 meets the Heads of his Ancestors on March 17th, 2021 Samia Suluhu Hassan divulged

    Posted On 20 Mar 2021

    New Africa Business News, Person of the Year 2020-2021, Goes to Dr. Arikana Chihombori Quao

    Posted On 01 Jan 2021

    Thanks for reading, Africa’s fastest...

    Posted On 27 Apr 2022

    Thanks for reading, Africa’s fastest...

    Posted On 27 Apr 2022

    Thanks for reading, Africa’s fastest...

    Posted On 27 Apr 2022

    Facebook

    Latest Posts

    East African Community Unveils Bioeconomic Strategy for the next Decade

    Africa Exchange Fair Trade Limited (AFEX) Expands Into Kenya, Target High Commodities Trading While Bolstering the Continent's Food Security

    Ghana & Nigeria to Improve Cross-Border Trade

    Recent Posts

    • East African Community Unveils Bioeconomic Strategy for the next Decade
    • Africa Exchange Fair Trade Limited (AFEX) Expands Into Kenya, Target High Commodities Trading While Bolstering the Continent’s Food Security
    • Ghana & Nigeria to Improve Cross-Border Trade
    • Tanzania Seeks to Reach New Record Cashew Production by 2025
    • Nestle Nigeria Capitalized Rural Women to enable Financial Capacity and boosting Standard of Living

    Categories

    • Business
    • Education
    • Entertainment
    • Featured
    • Government
    • Immigrants
    • Investment
    • News
    • NGO
    • Obituary
    • Opinion
    • Public Notice
    • Sport
    • Video

    Tag Cloud

    african economy business africa

    Contact Form

    1. Name *
      * Please enter your name
    2. Email *
      * Please enter a valid email address
    3. Message *
      * Please enter message
    Copyright 2019 New Africa Business News, Inc. A Global International Company, Inc. All Rights Reserved.