Nigeria Holds Steady as Second-Largest Investment Banking Hub in Sub-Saharan Africa
Nigeria has retained its status as the second-largest investment banking market in Sub-Saharan Africa for the year 2025, according to the latest industry report. The Sub-Saharan Africa Investment Banking Review Full Year 2025, published by LSEG Data & Analytics, highlights Nigeria's significant role in the regional financial landscape, with mixed performance across various segments.
Fee Revenue Growth Amidst Market Challenges
The report reveals that Nigeria recorded an overall increase in investment banking fees, reaching $97.9 million in 2025. This represents an 8% rise compared to 2023, positioning Nigeria among the top three fee-generating markets in Sub-Saharan Africa. South Africa led the region with 51.5% of total fees, followed by Nigeria at 19.4%, and Ivory Coast at 6.9%.
Across Sub-Saharan Africa, total investment banking fees amounted to $503.9 million in 2025, marking a 13.1% increase from the previous year. This growth underscores the region's expanding financial activities, with Nigeria playing a pivotal role despite facing headwinds in certain areas.
Equity Issuance Declines Despite Regional Surge
While equity and equity-related issuance across Sub-Saharan Africa soared to $5.5 billion in 2025—a 58% increase from 2024 and the highest level in eight years—Nigeria experienced a notable slowdown. Proceeds from equity deals in the country declined by 27% to $690.9 million.
Despite this drop, Nigerian companies remained active in major regional transactions. For instance, Presco Plc completed a $163.7 million follow-on offering in December, and United Bank for Africa Plc executed two follow-on offerings in April and September 2025, raising over $255 million combined.
Sharp Drop in Mergers and Acquisitions Activity
The report also indicates a significant contraction in mergers and acquisitions involving Nigerian entities. The total value of M&A deals in Nigeria fell by 76% to $1.3 billion in 2025, even as announced M&A transactions across Sub-Saharan Africa reached $37.2 billion, a slight 0.8% increase year-on-year.
Despite the steep decline, Nigeria remained the fourth most targeted country for M&A activity in the region. Key sectors driving deal activity included Consumer Staples and Energy & Power, reflecting ongoing interest in Nigeria's economic sectors.
Nigerian Firms Gain Ground in Regional Rankings
A notable highlight from the report is 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 staggering 678% increase compared to 2024.
CardinalStone Partners Ltd also made the regional leaderboard, finishing 11th for the year. These achievements underscore the growing competitiveness of Nigerian firms, even as global investment banking giants like Goldman Sachs and Morgan Stanley led the rankings.
Nigeria's Continued Importance in West African Finance
The report emphasizes Nigeria's enduring significance in the West African financial ecosystem, despite varying activity levels across key segments in 2025. The country's ability to maintain its position as a top investment banking market highlights its resilience and potential for future growth.
In related news, the federal government recently inaugurated the Governing Board of the Oil and Gas Free Zones Authority, expressing optimism that the sector will drive double-digit economic growth for Nigeria by 2030. This move aligns with broader efforts to bolster Nigeria's economic infrastructure and attract further investment.
