News
M&A Transactions in Sub Saharan African Hit $5.7Bn in Q12015
Thomson Reuters, the world’s leading source of intelligent information for businesses and professionals, has released the quarterly investment banking analysis for the Sub Saharan Africa region.
According to estimates from Thomson Reuters / Freeman Consulting, fees for Investment Banking services in Sub Saharan Africa totalled $83.4 million during the first quarter of 2015, up 49% compared to the same period in 2014 ($55.9 mil), driven by increases across equity, debt and syndicated lending fees.
Sneha Shah, Managing Director, Africa, Thomson Reuters, said: “The value of announced M&A transactions involving Sub Saharan African targets reached $5.7 billion during the first quarter of 2015, almost double the value recorded during the same period in 2014 ($2.9 bln), despite falling 65% from the previous quarter. The most targeted nation by value was South Africa, accounting for 48% of activity, followed by Nigeria (33%). South Africa was also the most active buyer in the region, while Canada was the most active foreign buyer.”
“Equity and equity-linked issuance in Sub Saharan Africa totalled $2.5 billion during the first quarter of 2015, an increase of 141% from the value recorded during the same period in 2014 ($1.0 billion) and the highest first quarter total since 2007. Sub Saharan African debt issuance reached US$4.1 billion during the first quarter of 2015, 70% more than the value recorded during the same period in 2014, and the highest first quarter total in the region since 2011,” she added.
In respect to investment banking, fees from equity capital markets underwriting increased 46% year-on year to reach $30.3 million, marking the highest first quarter total in the region since 2011.
Syndicated lending fees also increased from the first quarter of 2014, growing 122% to $10.4 million, while debt capital markets underwriting fees increased twelve-fold to $25.6 million.
Fees from advisory on completed M&A transactions fell 39% to $17.2 million, marking the slowest first quarter total since 2005.
Rand Merchant Bank topped the Sub Saharan African fee league table during the first quarter of 2015 with a 9% cut of the fees. Citi and Deutsche Bank followed in second and third positions, respectively.
As for M&A activity during the first quarter of 2015, Eroton Exploration & Production Co Ltd acquired a 45% stake in the Oil Mining Lease 18 (OML 18) of the Nigerian state-owned Nigerian National Petroleum Corp for $1.1 billion in March.
The deal was the largest in the region during the first quarter of 2015. Boosted by this deal, Energy & Power was the most active sector during the first quarter of 2015, accounting for 29% of M&A activity.
Rand Merchant Bank topped the 1Q 2015 announced any Sub Saharan African involvement M&A ranking, with $1.4 billion, while Investec topped the Sub Saharan African target M&A ranking.
Equity capital markets was also active during the first three months of 2015, follow-on offerings dominated the market, with the largest from South African Aspen Pharmacare Holdings in March. 69% of deals, by proceeds raised, involved a South African issuer.
The Healthcare, Financial, and Energy & Power sectors were the most active for equity issuance in the region during the first quarter of 2015. UBS and Citi shared the top spot in the Sub Saharan African Equity Capital Markets league table during the first quarter of 2015.
Debt capital markets in Sub Saharan Africa recorded the highest first quarter total in the region since 2011. South African Eskom issued the largest bond in the region so far this year. The state-run utility sold $1.2 billion in 10-year fixed-rate bonds in February.
Deutsche Bank took the top spot in the Sub Saharan African Debt ranking during the first quarter of 2015 with US$1.0 billion, or a 26% share. Rand Merchant Bank and Standard Bank Group followed in second and third positions.
British High Commission in Nigeria has reiterated the strong, long-standing relationship between the United Kingdom and Nigeria following the release of the UK Immigration White Paper earlier today.
A spokesperson for the High Commission stated that the UK remains a top destination for Nigerians seeking opportunities to work, study, visit, and settle, acknowledging the valuable contributions Nigerians make to the UK economy and society.
The White Paper outlines reforms to legal migration, aimed at restoring order, control, and fairness to the system while promoting economic growth.
The spokesperson assured that changes would be gradual, with further engagement between the UK and Nigerian government officials once implementation details are finalized.
“The UK has a proud tradition as an outward-looking nation, investing and trading abroad, and welcoming the creativity, ideas, and diversity of those who come to contribute here,” the spokesperson said.
The UK government has pledged to work closely with Nigerian authorities to ensure a smooth transition as the new immigration policies take effect
Nigerian Electricity Regulatory Commission (NERC) has directed nine electricity Distribution Companies (DisCos) to compensate Band A customers residing in 557 streets across their franchise areas for failing to meet the minimum power supply requirement under the new electricity tariff regime.
According to NERC, the affected DisCos must implement compensation across 152 electricity feeders due to poor supply in April.
The compensation will be provided through electricity credit or improved power supply, as outlined in the April 2025 Multi-Year Tariff Order.
The directive affects the following DisCos:
Abuja Electricity Distribution Company (AEDC)
Eko Electricity Distribution Company (EKEDC)
Port Harcourt Electricity Distribution Company (PHED)
Kano Electricity Distribution Company (KEDCO)
Kaduna Electricity Distribution Company (KAEDCO)
Ikeja Electric (IE)
Ibadan Electricity Distribution Company (IBEDC)
Benin Electricity Distribution Company (BEDC)
Enugu Electricity Distribution Company (EEDC)
The development follows a tariff hike of over 300% for Band A customers in 2024, which mandated a minimum daily power supply of 20 hours. Despite the increase, many consumers have continued to report poor service delivery, leading to the latest compensation directive.
NERC stated that affected DisCos must upgrade power supply in designated areas or provide electricity credits to customers who experienced service failures.
Socio-Economic Rights and Accountability Project has called on the Central Bank of Nigeria to immediately disclose whether it has commenced the direct disbursement of allocations to the 774 local government areas in Nigeria, following the Supreme Court’s landmark judgment nullifying state governors’ control over LGA funds.
In a letter dated 10 May 2025 obtained by our correspondent, addressed to the CBN Governor, Mr Olayemi Cardoso, and signed by SERAP’s Deputy Director, Kolawole Oluwadare, the group also demanded that the bank “widely publish the amounts, if any, so far sent directly to each of the local governments” and provide a detailed explanation of any payments already made—particularly to LGAs in Rivers State.
The group stated: “We are writing to request you to use your good offices and leadership position to immediately disclose whether the CBN has commenced the direct disbursement of allocations to the 774 local government councils in Nigeria from the Federation Accounts with the CBN, and to widely publish the amounts, if any, so far sent to each of the local governments.”
This request follows a Supreme Court judgment declaring the practice by governors and the FCT Minister of retaining and disbursing LGA allocations unconstitutional and unlawful.
The court ruled that no governor or agency has the authority to interfere with allocations meant for LGAs from the Federation Account.
Citing this judgment, SERAP argued: “Local government councils are entitled to a direct payment from the Federation Account of the amount standing to their credit in the said Federation Account. States should not be collecting, receiving, spending or tampering with the local government council funds from the Federation Account meant for the benefit of the councils.”
The advocacy group expressed concern that despite the ruling, many state governors have continued to “starve local governments of funds and put them in peril,” thereby undermining their autonomy and capacity to function as the third tier of government.
In the letter, the group warned that if the CBN fails to act within seven days, it would take legal action.
“If we have not heard from you by then, the Incorporated Trustees of SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest,” the letter stated.
SERAP referenced a past revelation by former President Muhammadu Buhari, who in December 2022 described how governors allegedly short-changed LGA chairmen.
“If the money from the Federation Account to the state is about N100 million, N50 million will be sent to the chairman, but he will sign that he received N100 million. The chairman will pocket the balance and share it with whoever he wants to share it with,” Buhari had said.
The organisation argued that the CBN has a constitutional and statutory obligation to protect the financial interests of all tiers of government.
“The CBN ought to act in the public interest to protect the allocations in the Federation Account and the public funds disbursed from that Account directly to each of the constitutionally recognised three tiers of government,” it said.
Highlighting the March 2025 revenue distribution by the Federation Account Allocation Committee, SERAP noted that a total of N1.578 trillion was shared among the three tiers of government. It queried whether the LGAs had received their fair share directly, as mandated by the court ruling.
“Ensuring that all restrictions against direct disbursement of allocations from the Federation Account to the 774 councils are lifted will comply with the orders by the Supreme Court and stop states and the FCT from tampering with the allocations ahead of the 2027 general elections,” SERAP warned.
The group further argued that Nigerians have a legal and moral right to know how their money is being managed, referencing several legal frameworks, including the Nigerian Constitution, the Freedom of Information Act, the African Charter on Human and Peoples’ Rights, and the International Covenant on Civil and Political Rights.
“The public interest in publishing the information sought outweighs any considerations to withhold the information. Nigerians are entitled to the right to receive information without any interference or distortion, and the enjoyment of this right should be based on the principle of maximum disclosure,” SERAP stated.
The group also reminded the CBN that “the Freedom of Information Act is applicable and applies to public records in the Federation, including those kept by the CBN.”
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