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Newcomer investors flood Nigeria venture capital market

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Olubunmi Abayomi-Olukunle and Adekunle Adewale, partners at Nigeria-based venture capital and private equity advisory law firm, Balogun Harold, have observed a steady increase in the number of Africa-focused venture capital funds, corporate VC, accelerators, private equity firms implementing growth strategies and other early-stage investors who set up shop in Nigeria in 2017. Both (Abayomi-Olukunle and Adewale) are of the opinion that growing investor confidence and a positive economic outlook make a compelling case for a robust year ahead for Venture Capital-led Mergers and Acquisitions in Africa’s largest economy. Their insightful views and projections for 2018 are outlined below by BusinessDay’s Private equity and Fundraising editor, Lolade Akinmurele. It Can Only Get Better And It Will. The early-stage/venture capital market in Nigeria is still largely, a buyer’s market and we suspect that this trend will persist through 2018. However, there are two important factors
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Foreign Investment Income declines 41 percent in Nigeria; lowest in Decade.

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The National Bureau of Statistics, NBS, on Wednesday said the total value of capital imported into Nigeria in the first quarter of 2017 was estimated to be $908.27 million, the lowest in ten years. According to a new report tagged Capital Importation Report, released by the bureau on Wednesday, when compared to the $1.55 billion that the economy attracted in the fourth quarter of 2016, the figure represents a decline of $640.61 million, representing 41.36 per cent. The decline in investment inflow, the report said, was due to the fall in “other investment” and portfolio investments category made up of equity, which dropped from $176.44 million in the fourth quarter of 2016 to $101.99 million in the first quarter of 2017. Similarly, loans declined from $917 .01 million to $369.28 million while bonds, which recorded $25.4 million at the end of the last quarter of 2016, recorded nothing in the first quarter of the current fiscal year. “Capital importation was particularly low
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Nigeria’s June oil exports poised to hit 15-month high on Forcados plan

Nigeria issued its first Forcados oil loading plan since 2016, putting the nation’s June oil exports on track to hit thier highest level in at least 15 months. The plan, if realised, would return loadings by Nigeria, normally West Africa’s biggest oil exporter, to levels not seen since militant attacks in the oil-rich Niger Delta first shut down Forcados exports in early 2016. It is also likely to put more downward pressure on oil prices, which are already trading more than 16 percent below the highs reached in January on the back of a persistent global excess. Last week the Organization of the Petroleum Exporting Countries along with several other oil producing nations agreed to extend output cuts of 1.8 million bpd, but it gave Nigeria, along with Libya, another exemption. The  Forcados loading schedule includes seven cargoes, for a total of 197,000 barrels per day (bpd) . That would bring total June exports to 1.75 million bpd aboard 58 cargoes. According to the Reuters
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20 MOST LUCRATIVE BUSINESS TO INVEST IN NIGERIA

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In the Quinquagenary , Nigeria has been dependent on its oil resources, which unarguably have brought great wealth to selected few in the country. The oil resources however brought along with it redundancy to Nigerians in exploring other available resources. Nevertheless, as Nigeria’s economic changes, its economic structure diversifies to overcome its dependency on oil. This shift has led to the emergency of a new generation of entrepreneurs in Nigeria. People, who can identify business opportunities in Nigeria, know that the oil industry is not the only business that is highly profitable. Some businesses have been identified to be highly profitable yielding millions of naira. Some of these businesses are listed below ; 1.     Rice Farming –  This is a fast rising business now in Nigeria, as part of the economic diversification strategy in Nigeria, Nigerians are beginning to go back to farming which was further encouraged by the ban of rice importation into Nigeria.  It is the mos
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Presidential Panel formalize 2 days for new Business registration

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The  Presidential Ease of Doing Business panel  has reduced the number of days required for registration of new businesses in Nigeria from 10 to two days.  The panel also approved 24-hour time-line for companies registration from when application form was completed, submitted and all required documents made available. The report was presented by Dr Jumoke Oduwole, Senior Special Assistant to the President on Trade and Investment and came as reforms targeting the end of the 60-day Action Plan on Ease of Doing Business in Nigeria. According to the  recommendations prospective business owners can now search on Corporate Affairs Commission (CAC) portal   (www.cac.gov.ng) to avoid duplic ation of names and prevent selection of prohibited names. I t is now optional for SMEs to hire lawyers
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