2024 In Focus: Nigeria’s Billion-dollar M&A Boom Reshapes Key Sectors

Nigeria’s corporate landscape witnessed an unprecedented surge in mergers and acquisitions (M&A) in 2024, marking the highest activity level since 2014. With deals valued at a staggering $3.8 billion in the first nine months alone, the country became the second-largest M&A hotspot in Africa, trailing only South Africa, according to DealMakers Africa. The year has been defined by strategic consolidations, ambitious takeovers, and a seismic shift in ownership across sectors ranging from oil and gas to agriculture and banking.

The oil and gas sector emerged as the undisputed epicentre of activity, with a series of headline-grabbing deals reshaping the sector’s operational dynamics. In January, a consortium of five indigenous oil firms under the banner of Renaissance—a coalition including ND Western, Aradel Holdings, Petrolin Group, First E&P, and Waltersmith Group—secured an agreement to acquire Shell Petroleum Development Company (SPDC) for $2.4 billion. The deal, which had stalled for nearly a year due to regulatory hurdles, finally received the federal government’s approval this December. The acquisition marks the largest single M&A deal in Nigeria in over a decade and signals a broader trend of international oil companies exiting Nigeria’s shallow-water operations.

Another landmark deal followed in July when Chappal Energies made waves with an $860 million agreement to acquire TotalEnergies’ stake in Nigeria’s onshore oil and gas assets. Despite its bold entrance into the energy sector, the deal is still awaiting regulatory clearance. TotalEnergies’ divestment reflects a strategic shift, as its stake is intertwined with SPDC’s assets, now controlled by Renaissance, and NAOC’s share, held by Oando.

Seplat Energy also concluded its long-awaited $800 million acquisition of Mobil Producing Nigeria Unlimited (MPNU) after 30 months of regulatory uncertainty. Ministerial approval was finally granted in December, sealing a deal that had been closely watched by industry players.

In a similar vein, Oando Plc’s acquisition of Eni’s Nigerian onshore subsidiary, NAOC, for $783 million became the first oil and gas deal to receive ministerial approval earlier in the year. The transaction was finalised in August, solidifying Oando’s position as a dominant force in Nigeria’s energy sector.

Beyond oil and gas, other sectors also witnessed transformative deals. In June, Tolaram Group acquired a 58 percent stake in Guinness Nigeria from Diageo for N104 billion, marking Diageo’s complete exit from the Nigerian brewery market. This acquisition mirrors a growing trend of international beverage giants stepping away from Nigerian operations amid economic challenges.

The agricultural sector also felt the ripple effects of strategic acquisitions. In March, Saroafrica International, through its special-purpose vehicle Oak and Saffron, took over Presco Plc by acquiring an 86.7 percent stake from SIAT Group. Presco, under its new leadership, subsequently launched an ambitious $125 million bid to acquire Ghana Oil Palm Development Company (GOPDC), signalling its regional growth ambitions.

In the financial services sector, September brought news of FBN Holdings’ divestment from its investment banking arm, FBNQuest Merchant Bank. The subsidiary was acquired by EverQuest Acquisition LLP, a consortium consisting of Custodian Investment, Aion Investment, and Evercorp Industries. Though the deal’s full valuation remains undisclosed, FBN Holdings estimated the assets put up for sale at approximately N465 billion in its third-quarter financial report.

Additionally, Nigeria’s banking sector recorded its first merger in over five years when Unity Bank and Providus Bank announced their union in August. The strategic merger, aimed at meeting the Central Bank of Nigeria’s recapitalisation requirements, comes with an anticipated N700 billion financial backing from the apex bank.

The flurry of deals across multiple sectors highlights a crucial moment in Nigeria’s corporate history. Indigenous firms are stepping up to fill the void left by departing international players, while strategic partnerships and consolidations are reshaping industries. As the dust settles on 2024’s record-breaking M&A activity, one thing is clear: Nigeria’s corporate future is being redefined, one deal at a time.