An Overview of Nigerian Venture Capital and Private Equity

An Overview of Nigerian Venture Capital and Private Equity

Executive Summary

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.