Why Nigeria should Lower the Entry Barrier for the Private Equity Market


Tuesday, March 30, 2021 / 6:26PM/ Ottoabasi Abasiekong for WebTV / Header Image Credit: The Spark


Lowering the barrier to entry of the private equity market in Nigeria would lead to more investments into the economy and the closing of more deals in the country. Mr. Joseph Agunbiade the Founder of Univelcity stressed this in a conversation on the "Q1,2021 Review of Private Equity Market Activities In Nigeria".


He believed the Nigerian capital market could support the growth of the private equity (P.E.) market with the right rules and laws in place. Agunbiade the C0-founder of BudgIT,  said Q1 2021 analysis showed that the year was promising for the P.E. market.


He highlighted the notable growth in the Nigerian fintech industry, with the impact of  Flutterwave now valued at $1bn, and its recently sealed partnership with Paypal, taking it to a global level of operations. This, according to him, showed the strides alongside made by Nigerian tech companies as also demonstrated by Stripe's acquisition of another Nigerian fintech company "Paystack" for $200m.


He believed investor confidence has been restored in the P.E market,  with an impressive return on investments, ROI. Speaking further he cited ULesson an EDTech company and health-based companies like 54Gene, Evercare, and Flying Doctors as examples of interesting developments in the Fintech market that were performing well and attracting significant investments.


Agunbiade also acknowledged the fact that women were leading entrepreneurs playing key roles in transactions and deals in the Industry. He said it was important for Private Equity companies to give greater opportunities to women, especially ensuring gender inclusion in the composition of boards.


According to him, there has been noticeable support for female entrepreneurs by investors, with achievements recorded by Fintechs like Bankly and  Piggyvest. Looking at the remaining quarters of the year, Agunbiade called on the top 1% of wealthy Nigerians to form investment groups that could support SMEs in the country.


He also stressed the importance of stability and clarity in the foreign exchange market as an important catalyst to investments in the country.

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