Nigerian corporates recorded a sum of $8.88 billion (N3.65 trillion) as deals in 2021, across 177 transactions, representing a significant increase compared to the previous year (FY 2020, 108 deals valued at $4.3 billion/N1.8 trillion).
This is according to information contained in a comprehensive Corporate DEALs Book report for 2021, published by Nairametrics Research.
The DEALs Book is a compilation of all the corporate deal transactions impacting Nigerian companies throughout the course of the year. Nairametrics Research documents all transactions through sources such as press releases and other official statements confirming such deals.
The deals were recorded across various sectors of the Nigerian economy, with the tech industry receiving a huge chunk of funding to kick start or expand their business ventures.
This pace of deal-making trend further demonstrates a continuing appetite for businesses serving Nigerian consumers as investors who are awash with surplus funds from the various quantitative easing programs across the globe seek to better utilize available liquidity.
- Seed/Series Funding was the most popular in terms of deal frequency with 91 deals valued at $1.25 billion (or N516.06 billion).
- Commercial Paper issuance was next most popular with 25 deals valued at $1.05 billion (or N429.93 billion).
- Bond Issuance was the largest deal type with a value of $3.77 billion (or N1.55 trillion) across 22 deals.
- Acquisitions was the next largest deal type with a value of $1.63 billion (or N668.2 billion) across 20 deals.
Sources of funds were both domestic and foreign investments, covering a variety of types, such as equity injections, seed/series funding, debt financing, bond, and commercial paper issuances.
Utilization of the funds ranged from simple working capital for domestic operations to cross-border expansion of businesses. Albeit some organizations did not disclose the value of deals consummated in the period under review.
Some of the deals captured in the document include the acquisition of Enyo retail services by Ardova PLC for an undisclosed amount. Also, amongst the notable deals include the successful completion of the N110 billion series 1 seven-year fixed bond by Nigerian telco giant, MTN Nigeria under its N200 billion bond issuance programme.
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