Capital Raising - Nigeria | Statista Market Forecast

The country in Nigeria is expected to see Total Capital Raised in the Capital Raising market market reach US$645.20m by 2024.
Traditional Capital Raising is anticipated to lead the market with a projected market volume of US$543.80m in 2024.
When compared globally, the United States is set to generate the most Capital Raised, with US$195.4bn in 2024.
Nigeria's Capital Raising market is witnessing a surge in private equity investments, signaling growing confidence in the country's economic potential.

Definition:

The Capital Raising market refers to the process of raising additional capital to launch, finance, and grow a business or a project. Traditional Bank Loans are not considered in the market.

Structure:

The market consists of two segments:
- The Traditional Capital Raising market refers to traditional venture financial services for startups and emerging companies that do not yet possess a positive track record, but have exceptional growth potential.
- The Digital Capital Raising market refers to digital financial services for business customers and private borrowers.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Besides Traditional Bank Loans, there are various alternative forms of debt and equity financing that help businesses, especially startups and emerging companies who seek additional funds to support their business' operation and growth. Nowadays, owing to the rapid growth rate of startups and emerging companies, these financial services are more attractive and popular.
Key players in this market are companies such as Squoia Capital, Hercules Capital, and Indiegogo

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Venture Capital
Venture Debt
Digital Capital Raising

Traditional Bank Loans

The Capital Raising market in Nigeria has been experiencing significant growth in recent years.

Customer preferences: Nigerian investors have shown a strong preference for capital raising activities, particularly in the form of initial public offerings (IPOs) and bond issuances. This is driven by the desire to diversify investment portfolios and take advantage of attractive returns. Additionally, there is a growing interest in socially responsible investing, with investors seeking opportunities to support sustainable and impactful projects through capital raising activities.

Trends in the market: One of the key trends in the capital raising market in Nigeria is the increasing number of IPOs. This can be attributed to the country's growing economy, which has attracted both local and international investors. Nigerian companies are seeking to raise capital through IPOs to finance expansion plans, enhance their market presence, and improve corporate governance practices. The success of recent IPOs has further fueled investor interest, leading to a positive cycle of capital raising activities. Another trend in the market is the rise of bond issuances. Nigerian corporates and government entities are increasingly turning to the debt markets to raise capital. This is driven by the need to fund infrastructure development projects, as well as to refinance existing debt at more favorable terms. The bond market in Nigeria has witnessed significant growth in recent years, with a diverse range of issuers and investors participating.

Local special circumstances: Nigeria's large and youthful population presents a unique opportunity for capital raising activities. With a median age of 18. 4 years, the country has a significant pool of potential investors who are eager to participate in the capital markets. This demographic advantage, coupled with increasing financial literacy and technological advancements, has created a conducive environment for capital raising activities. Furthermore, the Nigerian government has implemented various reforms to attract investment and improve the ease of doing business. These reforms include the establishment of a centralized securities exchange, the introduction of electronic trading platforms, and the implementation of investor protection measures. These initiatives have instilled confidence in both domestic and international investors, leading to increased participation in the capital raising market.

Underlying macroeconomic factors: The development of the capital raising market in Nigeria is also influenced by several macroeconomic factors. The country's GDP growth rate, which has been relatively stable in recent years, provides a favorable backdrop for capital raising activities. Additionally, the low interest rate environment and the availability of liquidity in the banking system have made it attractive for companies to raise capital through debt issuances. Furthermore, the Nigerian government's commitment to infrastructure development has created opportunities for capital raising activities. The government has embarked on various projects in sectors such as power, transportation, and telecommunications, which require significant capital investment. This has led to an increased demand for capital raising activities, particularly in the form of bond issuances. In conclusion, the capital raising market in Nigeria is experiencing significant growth, driven by customer preferences for IPOs and bond issuances. The country's large and youthful population, coupled with favorable macroeconomic factors and government reforms, has created a conducive environment for capital raising activities. As the Nigerian economy continues to grow and attract investment, it is expected that the capital raising market will continue to expand in the coming years.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us 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 relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.