The latest report released by KPMG has projected that the Nigerian economy is seemingly on the upturn and remains an attractive destination for foreign investors, seeking sustainable growth opportunities within the continent.
The report stated that the Consumer Goods, Financial Services, Telecommunication, Media & Technology and Oil & Gas sectors accounted for about 80 per cent of recent inbound investments into the country.
The report titled, ‘Doing Deals in Nigeria – Key Insights from Deal Makers’ is the result of a survey of 50 senior business executives based outside of Nigeria, who have attempted at least one inbound acquisition in Nigeria in the last four years.
About 62 per cent of the respondents are from five countries; South Africa accounting for the largest percentage (20 per cent); closely followed by UK (18 per cent) and USA (12 per cent). Other notable countries with interest are France (six per cent) and Netherlands (six per cent).
Also, 62 per cent of the respondents surveyed, would consider an acquisition in Nigeria over the next two years, while 86 per cent of respondents indicated that they would more likely invest in Nigeria again.
The report further noted that the key drivers for Nigerian acquisitions by foreign investors include the target’s customer base and domestic distribution channels and the opportunity for the investor to restructure the businesses to create further value. The ability of global corporates and private equity firms to use Nigeria as a base for expansion across West Africa further raises the country’s investment destination profile.
According to Partner and Africa Head, Deal Advisory and Private Equity, KPMG in Nigeria, Dapo Okubadejo: “Our key objective in conducting the survey for this report, was to hear first-hand from foreign investors.
The survey report shares the contributors’ unique insights and perspectives on their deal-making experiences in Nigeria, providing a direct credible feedback to potential investors on the true potential of Nigeria and what to expect in doing deals.
The report also identifies the key sectors, deal dynamics, leading practices and recognizes challenges in doing deals in Nigeria.