Nigeria tops private capital inflow in 2021 — BCG report

By Adeleye Kunle

Nigeria ranks first on the list of countries with significant private capital inflows in 2021, with global assets under management (AuM) increasing by 12% to $112 trillion, significantly exceeding the 20-year growth average of 7%.

This is stated in a new report published by Boston Consulting Group (BCG), a global management consulting firm.

“With $100 trillion to $150 trillion in capital deployment required to achieve net-zero goals by 2050, demand for sustainable investments represents an opportunity that will dominate the sector in both the short and long term,” according to the report. Bond and equity allocations for asset managers are expected to be in the $20 trillion to $30 trillion range, with much of it frontloaded over the next few years as more investments flow into climate-transition projects.”

According to the report, revenue from alternative assets such as private equity, hedge funds, and real estate assets will exceed half of global revenue in the next five years.

According to Stefano Niavas, Partner and Managing Director at BCG Nigeria, “Africa’s economy continues to be appealing to private capital investors seeking huge returns, and Nigeria leads the list of countries that had remarkable private capital inflows in 2021.” The majority of these funds were invested in venture capital assets, followed by infrastructure and finally private equity. According to the African Private Equity & Venture Capital Association (AVCA), 145 Venture Capital deals worth $1.1 billion were reported in Nigeria in 2021.”

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