Report: Private Equity Firms Freeze Deals in Nigeria, Begin Lobby over Higher Tax

Private Equity firms in Nigeria are slowing dealmaking, with some freezing investment as they lobby the government to soften the impact of its tripling of a capital-gains tax, people familiar with the situation have told Bloomberg News.

Members of Nigeria’s Private Equity and Venture Capital Association (PEVCA) met authorities last month and are seeking further engagement after the 30 per cent tax came into effect at the start of the year, the people said, asking not to be identified so as not to complicate the talks. One large fund has halted new investments, they said, asking that it not be identified.

Pevca declined to comment. PEVCA’S members include Actis LLP, Norrsken22 and African Capital Alliance.