Nigeria’s mergers and acquisitions (M&A) market saw its lowest first-half value in nearly a decade, plunging 89% year-on-year to $105.8 million in the first six months of 2026. Despite the sharp drop in value, Nigeria recorded the highest number of transactions in Africa with 39 deals, indicating that while investors remain active, they are committing significantly less capital per deal. Analysts attribute the decline to a confluence of factors, including foreign exchange volatility, global risk aversion, political uncertainty regarding the 2027 elections, and a recent increase in the capital gains tax rate from 10% to 30%. The mismatch between buyer and seller valuations, combined with these macroeconomic headwinds, has shifted investment preferences toward smaller transactions and alternative capital-raising methods like rights issues and primary placements.