Market Insights Financial Corporate Finance

Investment Banking - Nigeria

Nigeria

In Nigeria, the projected revenue in the Investment Banking market market is expected to reach US$1.05bn in 2024.
According to forecasts, this market segment is predicted to exhibit an annual growth rate (CAGR 2024-2028) of 0.71%, leading to a projected total amount of US$1.08bn by 2028.
When compared globally, it is worth noting that the United States generates the highest revenue in this sector, reaching US$119.10bn in 2024.
Nigeria's investment banking sector is experiencing a surge in corporate finance deals, driven by increased foreign investor interest.

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Analyst Opinion

The Investment Banking market in Nigeria has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Nigeria are increasingly seeking investment banking services to help them navigate the complex financial landscape and make informed decisions about their investments. They are looking for personalized services that cater to their specific needs and risk appetites, driving the demand for tailored financial solutions.

Trends in the market: One notable trend in the Nigerian Investment Banking market is the growing interest in mergers and acquisitions (M&A) activities. Companies are looking to expand their operations and reach through strategic partnerships and acquisitions, leading to an uptick in M&A deals in the country. Additionally, the rise of fintech companies is disrupting traditional banking models, prompting investment banks to innovate and adapt to the changing market dynamics.

Local special circumstances: Nigeria's Investment Banking market is also influenced by local regulatory frameworks and government policies. The regulatory environment plays a crucial role in shaping the market landscape and determining the ease of doing business in the country. Moreover, the presence of a young and tech-savvy population in Nigeria is driving digital transformation in the financial sector, with investment banks increasingly focusing on digital platforms and technology-driven solutions to reach a wider customer base.

Underlying macroeconomic factors: The economic stability and growth prospects of Nigeria play a significant role in shaping the Investment Banking market. Factors such as GDP growth, inflation rates, and foreign direct investments impact the overall investment climate in the country. Furthermore, geopolitical factors and global economic trends also influence investor sentiment and market volatility in Nigeria, affecting the demand for investment banking services.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.