Shell’s $2.4 billion sale of Nigerian assets tops African M&A activity – Report

Shell’s $2.4 billion sale of Nigerian assets has become the largest M&A deal ever recorded in Africa in 2024, according to DealMakers AFRICA.

The deal, which involves the divestiture of onshore oil and gas assets to a consortium of local and international investors, highlights Nigeria’s role in driving M&A activity across the continent. The transaction highlights the continued dominance of the oil and gas sector in the Nigerian economy while reflecting growing global interest in transforming energy portfolios.

“Of the 10 largest deals recorded by DealMakers AFRICA so far this year, Shell’s divestiture of its Nigerian assets to a consortium topped the list at $2.4 billion.”The long-term strategy focuses on clean energy and reducing risks in onshore oil operations, including operational challenges and environmental issues. The move comes as Nigeria continues to attract investor interest. 48 registered M&A deals make the country the leading country in West Africa and the second largest on the continent after Egypt.

As oil and gas remain the focus of M&A activity in Nigeria, renewable energy projects are gradually gaining traction, driven by sustainable development goals and environmental, social and governance considerations.

Analysts believe that this shift could diversify Nigeria’s investment landscape and increase deal flow in emerging sectors.

Experts praised the importance of the Shell deal in maintaining Nigeria’s position as a leading destination for high-profile deals. However, they noted that rising interest rates and global economic pressures continue to complicate the availability of debt financing, which could affect the overall pace of dealmaking in the country.

The Shell deal is expected to have a ripple effect on the Nigerian oil and gas sector. Analysts expect further asset sales and possible consolidation as companies rebalance their portfolios in line with changing market dynamics.

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