Nigeria Ranks Among Largest Investment Banking Markets in Sub-Saharan Africa
- Nigeria ranked as the second-largest investment banking market in Sub-Saharan Africa in 2025
- Investment banking fees in Nigeria rose to $97.9 million, up 8% compared to 2023
- Equity issuance in Nigeria declined by 27% to $690.9 million despite a regional surge
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Nigeria retained its position as the second-largest investment banking market in Sub-Saharan Africa in 2025, according to the Sub-Saharan Africa Investment Banking Review Full Year 2025 published by LSEG Data & Analytics.
Source: Getty Images
The report showed that Nigeria recorded growth in overall fee revenue during the year, although performance across segments was mixed, with strong activity in debt markets and weaker outcomes in mergers and equity deals.
Nigeria ranks behind South Africa in fee generation
LSEG estimated that $503.9 million in investment banking fees were generated across Sub-Saharan Africa in 2025, representing a 13.1% increase from the previous year.
South Africa accounted for 51.5% of the total fees, followed by Nigeria with 19.4% and the Ivory Coast with 6.9%.
Investment banking fees in Nigeria reached $97.9 million, marking an 8% increase compared to 2023. The report noted that this performance placed Nigeria among the top three fee-generating markets in the region, alongside South Africa and Ivory Coast.
Equity issuance declines despite regional surge
Across Sub-Saharan Africa, equity and equity-related issuance totalled $5.5 billion in 2025, a 58% increase from 2024 and the highest level recorded in eight years, according to LSEG.
However, Nigeria experienced a slowdown in equity issuance. Proceeds from equity deals in the country stood at $690.9 million, representing a 27% decline from the previous year.
Despite the drop, Nigerian companies featured in some of the region’s largest transactions. Presco Plc completed a $163.7 million follow-on offering in December, while United Bank for Africa Plc executed two follow-on offerings in April and September 2025, raising a combined total of over $255 million.
M&A deal value drops sharply
The report also showed a significant contraction in mergers and acquisitions (M&A) involving Nigerian entities.
While total announced M&A transactions across Sub-Saharan Africa reached $37.2 billion in 2025 — a 0.8% increase year-on-year — the value of deals involving Nigeria fell by 76% to $1.3 billion.
Despite the steep decline in deal value, Nigeria remained the fourth most targeted country for M&A activity in the region. Consumer Staples and Energy & Power were identified as the leading sectors driving regional deal activity.
Nigerian firms gain ground in regional rankings
A key highlight of the year was the improved performance of local Nigerian financial institutions in regional league tables.
United Capital Plc ranked 10th in the regional Equity Capital Markets bookrunner table, recording $84.3 million in proceeds, a 678% increase compared to 2024.
Source: Getty Images
CardinalStone Partners Ltd also made the regional leaderboard, finishing 11th for the year. The rankings were led by global investment banking firms, including Goldman Sachs and Morgan Stanley.
The report underscores Nigeria’s continued importance in the West African financial ecosystem, even as activity levels varied across key segments in 2025.
FG inaugurates OGFZA board
Legit.ng earlier reported that the federal government inaugurated the Governing Board of the Oil and Gas Free Zones Authority (OGFZA), expressing optimism that the sector will drive double-digit economic growth for Nigeria by 2030.
The government described the board as a team of experienced professionals with a proven record of excellence across the public and private sectors.
OGFZA’s responsibilities include licensing and regulation, infrastructure provision, coordination between public and private sector stakeholders, establishment of customs and security frameworks within the zones, and the resolution of labour and commercial disputes.
Source: Legit.ng
