Nigeria: Fund Management/ REITs

Private equity, venture capital, and private credit markets in Nigeria are evolving rapidly, with disclosed deal values surging 84% to US$810.7 million in 2025. While venture capital dominates transaction volume and value, private debt is expanding its role in working capital, acquisition finance, and infrastructure. The critical question is not whether capital can enter Nigeria at scale, but whether it can stay, perform through cycles, and ultimately return to investors as distributions.

Many small- and mid-sized businesses struggle to access traditional bank financing due to strict lending requirements, high collateral demands, and limited credit availability.

The directive of the CBN is predicated on the high credit and liquidity risks posed by these types of investments to the affected OFIs and the entire OFI sub-sector.