As African governments and companies increasingly turn to capital markets to fund growth, one of Nigeria's largest investment banking groups is making a strategic bet on the institution at the centre of that sector.
Nigerian billionaire Tony Elumelu's United Capital has acquired a 5% stake in Nigerian Exchange Group (NGX Group), a move that places the financial services firm among the exchange's significant shareholders and gives it a direct interest in the future of Nigeria's capital market infrastructure.
The acquisition comes as Nigeria seeks to deepen domestic capital formation amid tighter global financial conditions, elevated borrowing costs and declining access to cheap foreign capital.
For years, United Capital has played a central role in Nigeria's financial markets as an investment banker, stockbroker, asset manager and trustee.
By acquiring a stake in NGX Group, the company is moving beyond being a participant in the market to becoming an investor in the platform that underpins it.
