Nigeria’s largest market transactions in 2025 marked a shift in how companies approached funding. Rather than pursuing conventional capital raises, firms adopted alternative deal structures shaped by market constraints and funding costs.
High interest rates, currency adjustments and cautious investor sentiment forced companies to rethink how they accessed capital. As a result, deal structures in 2025 reflected flexibility, restraint and financial realism.
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Smaller deals, staged execution
One notable trend was the move towards smaller, phased transactions. Instead of large, single issuances, companies split funding into stages, allowing them to test market appetite and reduce exposure.
This approach limited balance sheet pressure and improved pricing, particularly in debt markets where investor selectivity remained high.
Shift from long-term debt to shorter tenors
Companies increasingly favoured shorter-term instruments over long-dated debt. Shorter tenors reduced interest exposure and offered flexibility to refinance if conditions improved.
While this strategy increased rollover risk, it provided breathing space for firms navigating uncertain cash flows.
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Equity became a last resort
Equity issuance remained limited in 2025 as companies avoided dilution at depressed valuations. Where equity was used, it was often paired with other instruments to soften impact on existing shareholders.
This cautious approach reflected concerns about market depth and investor appetite.
Local funding gained relevance
Domestic capital played a larger role in deal execution. With foreign inflows selective, companies relied more heavily on local institutional investors.
This strengthened the relevance of pension funds and domestic asset managers in Nigeria’s capital market.
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Implications for future transactions
The structural changes seen in 2025 suggest that companies will continue to prioritise flexibility over size. Deal success will depend less on scale and more on alignment with market conditions.
As funding strategies evolve, Nigeria’s capital market may see fewer headline-grabbing transactions, but more sustainable ones.
