Economy
Nigeria Records 28 Deals Worth $1bn in H1 2021
By Modupe Gbadeyanka
A new report from Baker McKenzie has indicated that in the first half of 2021, Nigeria and South Africa recorded a surge in mergers and acquisitions (M&A).
However, Kenya, another key economy in Sub-Saharan Africa, witnessed a slight decline in the period under consideration, according to an analysis of Refinitiv data.
It was revealed that 28 deals worth $1 billion were recorded in Nigeria in H1 2021, indicating that by transaction volume, it rose by 17 per cent and by value, it soared by 267 per cent.
Refinitiv data reveals that domestic transactions decreased by 15 per cent to 11 deals, but deal value increased by 342 per cent year-on-year to $726 million.
Also, cross-border transactions increased by 13 per cent to 17 deals, with deal value rising by 8 per cent to $296 million, with financial companies being the prime targets for inbound deals at four transactions, showing a 100 per cent increase y-o-y and deal value of $10 million, a 327 per cent increase year on year.
Once again, the US served as the primary investor for Nigerian companies, with four deals worth $13 million. The largest inbound deal into Nigeria in H1 2021 was Mwendo Holdings BV’s (South Africa) $182 million acquisition of Blue Lake Ventures Ltd (Media and Entertainment), announced in June 2021.
In a statement obtained by Business Post, the Head of Africa for Baker McKenzie, Mr Wildu du Plessis, stated that while investors from the US have shown interest in Africa for some time, under President Joe Biden, the general consensus is that US engagement with African countries is focusing on strengthening relationships in a strategic, co-operative way.
It has been noted that Mr Biden will continue with successful bipartisan programmes implemented by his predecessors, as well as further encouraging US trade and investment in the continent.
Considering that American companies were the top investors in two of Africa’s largest economies in the first half of 2021, dealmakers are clearly comfortable with Biden’s approach to Africa.
South Africa
The value of M&A transactions in South Africa in H1 2021 amounted to $52 billion, with 169 deals announced in the period. Compared to the first half of 2020, transactions volumes decreased by 8 per cent but deal value increased by 958 per cent in the first half of 2021.
Refinitiv data showed that the volume of domestic transactions increased slightly to 80 deals, a 10 per cent increase y-o-y. Domestic transactions in South Africa in H1 21 were worth $46.7 billion, a dramatic 2,148 per cent increase. Further, cross-border transactions increased 17 per cent to 89 deals, with deal value surging 251 per cent to $5.4 billion.
According to Marc Yudaken, Partner in the Corporate/M&A Practice at Baker McKenzie in Johannesburg, “Despite the excellent start to 2021, the unrest in South Africa threatens to impact the positive strides made in terms of foreign investment into the country in the first six months of this year.
“For the sake of South Africa’s post-pandemic recovery, the turmoil engulfing our country has to be ended before investors are forced to seek less risky alternatives.
“Foreign investors will only ramp up their investments if they are confident their assets are safe. They need political and economic certainty and must have confidence that there is rule of law in the countries in which they invest.”
High technology companies were the primary targets for inbound deals in South Africa, with 12 transactions, representing 200 per cent in deal volume and a deal value of $160 million, an increase of 1,997 per cent when compared to the same period last year.
“It’s no secret that African consumers have shown a growing reliance on technology across multiple platforms, even well before the pandemic struck.
“The growth of the digital economy across the continent has naturally been accelerated by the pandemic and this unabated demand for technology has caused extensive cross-sector disruption, with the financial, energy, transport, retail, health and agricultural sectors all seeking opportunities to expand their tech infrastructure in order to acquire the necessary skills and innovation needed to keep up with demand.
“Fintech is also a popular tech sector for investment across Africa and specifically in South Africa, Kenya and Nigeria, with health-tech, mobility and agritech also attracting growing interest,” Mr du Plessis noted.
“It looks like South Africa is leading the way in terms of high-value deals in the tech sector and we expect this tech M&A trend to continue as the continent gears up to operate in the post-pandemic new normal,” he added.
The United States was the primary investor for South African companies, with 16 deals (an increase of 60 per cent) valued at $496 million (an increase of 340 per cent).
This was helped by TPG Capital LP’s $200 million acquisition of Airtel Africa Plc-Mobile (telecommunications) announced in March 2021. The largest inbound deal in H1 2021 was Temasek Holdings (Pte) Ltd’s (Singapore) $500 million acquisition of Leapfrog Investments (financials), also announced in March 2021.
Kenya
In H1 2021, deal-making in Kenya decreased by 14 per cent with 18 deals in the period and deal value decreased by 96 per cent to $11 million.
Financial companies were the prime targets for inbound deals with five transactions, representing a 150 per cent increase, with deals valued at $11 million, a 78 per cent decrease.
Nigeria served as the primary investor for Kenyan companies with three deals. The largest inbound deal into Kenya in H1 2021 was Liberty Holdings Ltd’s (South Africa) $8 million acquisition of Liberty Kenya Holdings Plc (insurance), announced in March 2021.
In its reaction to this, Mr Du Plessis said the decrease in M&A volume and value in Kenya in H1 2021 is expected to be temporary as the country continues to implement pandemic recovery policies, including a vaccine rollout strategy for the adult population with a planned completion date of mid-2022.
“The country’s reputation as an East African investment hub, in addition to its strong technology capabilities, means that it is just a matter of time before Kenya takes up its rightful place as one of the top target countries for technology transactions in Africa,” he submitted.
By Adedapo Adesanya
President Bola Tinubu is seeking Senate approval for a significant upward review of the 2026 budget, proposing an additional N9 trillion to the Appropriation Bill.
The request, conveyed in a letter read on the Senate floor during plenary by the Senate President, Mr Godswill Akpabio, would increase the budget size from N58.47 trillion to N67.47 trillion.
According to the President, the proposed adjustment is aimed at strengthening fiscal transparency and ensuring more effective implementation of priority national programmes.
He said the increase will first address outstanding legal commitments carried over from previous appropriation cycles, preventing them from affecting the execution of the 2026 budget.
The proposal also seeks to consolidate existing government debt within the fiscal framework, while making provisions for a limited number of strategic and priority projects.
President Tinubu added that the revised financing plan is designed to preserve macro-fiscal stability and ease pressure on the domestic financial market.
The Senate is expected to consider the request in the coming days.
In December, the President presented the N58.47 trillion 2026 budget proposal to a joint session of the National Assembly, outlining the government’s priorities anchored on economic stability, infrastructure expansion, security and social investment.
The budget was hinged on assumptions including oil production of 1.84 million barrels per day, an oil price benchmark of $64.85 per barrel, and an exchange rate assumption of N1,400 to the Dollar.
Following the presentation, the Senate passed the appropriation bill for first and second readings, paving the way for detailed consideration by relevant committees.
By Adedapo Adesanya
The American Institute of CPAs (AICPA) and the Nigerian Capital Market Institute (NCMI), the educational and training arm of the Nigerian Securities and Exchange Commission (SEC), have collaborated to provide the Capital Market Operators (CMOs) in Nigeria with access to the Internal Control and Enterprise Risk Management Certificate programmes from the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
COSO is a joint initiative of five leading accounting and finance bodies, including the AICPA. It is dedicated to advancing thought leadership in Enterprise Risk Management (ERM), Internal Control, and Fraud Deterrence.
The COSO Internal Control Certificate Programme offers finance professionals a unique opportunity to develop expertise in designing, implementing and monitoring a system of internal control in today’s technology-driven world. The COSO Enterprise Risk Management Certificate Programme offers finance professionals the unique opportunity to learn the concepts and principles of the updated ERM framework and be prepared to integrate it into their organisation’s strategy-setting process to drive business performance.
With access to COSO programmes, businesses in Nigeria can strengthen their governance frameworks by developing and maintaining effective internal controls and managing risks such as errors, fraud, and mismanagement. This not only protects organisational assets but also promotes business continuity and resilience.
According to Ms Ijeoma Anadozie, Country Director, Nigeria at the Association of International Certified Professional Accountants, the global alliance formed by AICPA and CIMA, the collaboration marks a significant step towards strengthening corporate governance and risk management across the country
“By leveraging these resources, companies in Nigeria will be better equipped to tighten internal controls, enhance the accuracy and transparency of financial reporting, and foster greater investor confidence. These improvements are not only vital for business resilience and profitability, but they also contribute meaningfully to the broader economic development and financial stability of our country,” she noted.
On his part, Mr Tunde Kamali, Managing Director at the Nigerian Capital Market Institute, said he is proud to collaborate with the American Institute of CPAs in expanding access to globally recognised COSO programmes for businesses across Nigeria.
“This initiative reflects our commitment to equipping market participants with the tools needed to navigate an increasingly complex and risky landscape,” he said.
According to Mr Kamali, by deepening knowledge in internal control and enterprise risk management, “we are empowering businesses to operate with greater integrity, accountability, and strategic foresight. This collaboration not only supports the advancement of our capital market ecosystem, but also reinforces Nigeria’s long‑term vision for sustainable economic growth and global competitiveness.”
By Aduragbemi Omiyale
Five stockbroking firms operating in the Nigerian capital market have been sanctioned for engaging in market infractions.
The affected companies, Meristem Stockbrokers Limited, CSL Stockbrokers Limited, Cowry Securities Limited, Associated Asset Managers Limited, and SMADAC Securities Limited, were fined a total of N291 million.
The Nigerian Exchange Regulation (NGX RegCo) Limited, which imposed the penalties on the stockbrokers, accused them of being involved in wash trades and self-matching transactions.
It was gathered that the culprits were investigated by the exchange’s panel, which uncovered repeated instances of improper trading practices such as artificial price formation and misleading market activity.
They have all been directed to undergo mandatory compliance and market conduct training.
Business Post learned from a notice to the Securities and Exchange Commission (SEC) that CSL Stockbrokers Limited was fined over N91 million, while the other four firms were each fined N50 million in line with provisions of the Investment and Securities Act 2025.
NGX RegCo noted that the penalties reflect the gravity of the breaches and were aimed at strengthening market discipline, deterring misconduct and preserving the integrity of the Nigerian capital market.
It further stated that the action reinforces its drive to ensure a fair, orderly and transparent trading environment, while bolstering investor confidence through stricter enforcement of market rules.
In accordance with the Memorandum and Articles of Association (MemArt) of the Exchange, the board of NGX Regco held a meeting on March 27, 2026, wherein it confirmed the decision of the RNBC to sanction the five trading license holder firms. These sanctions are commensurate to infractions and to serve as a deterrence to these violations,” a part of the notice read.
The action of RegCo came a few weeks after the price movement of a company on the NGX platform, Zichis Agro-Allied Industries Plc, was probed after gaining almost 900 per cent in one month.
Trading in the shares of the company was suspended for about a month and was only lifted on March 23, 2026, with its share price adjusted downward to N8.58 from N17.36.
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