ARTICLE
30 June 2026

Regulatory Risk Allocation In Cross-Border M&A Involving Nigerian Targets

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Nigeria remains one of the most strategically significant M&A markets on the African continent. With Africa’s largest economy, a population exceeding 220 million, and sectors ranging from upstream petroleum to high-growth fintech, the country consistently draws foreign acquirers looking for scale and first-mover advantage.
Nigeria Corporate/Commercial Law
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Nigeria remains one of the most strategically significant M&A markets on the African continent. With Africa’s largest economy, a population exceeding 220 million, and sectors ranging from upstream petroleum to high-growth fintech, the country consistently draws foreign acquirers looking for scale and first-mover advantage. But anyone who has negotiated a deal involving a Nigerian target knows that regulatory complexity, not valuation, is often the defining variable in whether and when a transaction closes.

This article takes a practical look at how regulatory risk manifests across the lifecycle of a cross-border deal involving a Nigerian target: from early structuring decisions and due diligence design, through to the drafting of conditions precedent, MAC clauses, and indemnity regimes that can mean the difference between a clean close and a costly impasse. It draws on the regulatory developments of the past two years, including the Investments and Securities Act 2025 (ISA 2025), the Nigeria Tax Act 2025, the new CBN Foreign Exchange Code, and the Federal Competition and Consumer Protection Commission’s (FCCPC) increasingly assertive enforcement posture to offer guidance that is current and actionable.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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