Avca and PEVCA merger to boost Nigeria’s private capital amid renewed investor interest
The African Private Capital Association (AVCA) has underscored the importance of heightened capital deployment in vital sectors across Nigeria and the broader African continent to foster economic growth and development. This message emerged prominently during the 21st Annual Africa Venture Capital Association Conference, held in Lagos from April 28 to May 2, 2025. Themed “Bold Moves: Powering 10x in Africa,” the conference brought together prominent leaders from investment firms and private equity to deliberate on the current economic landscape and pinpoint sectors with significant growth potential.
Abi Mustapha-Maduakor, CEO of AVCA, highlighted the strategic significance of selecting Nigeria as the conference venue during a period marked by economic recovery following subdued investment activity over the previous three years. She observed that macroeconomic pressures and geopolitical dynamics had constrained deal-making across the country, but recent improvements signal a turning point. “We have seen stability in the exchange rate for a sustained period. Exit activity is beginning to occur in Nigeria, and investors who had previously not invested in the country are now starting to do so,” Mustapha-Maduakor told Leadership. She further emphasised the urgency, stating, “the time is now for capital to start coming to Nigeria,” reflecting a cautiously optimistic investment outlook.
Kola Aina, founding partner at Ventures Platform, appealed to local investors to seize the opportunity presented by Nigeria’s economic recovery, particularly by targeting sectors anticipated to reap long-term benefits. Complementing this sentiment, Olusola Lawson, co-managing director at African Infrastructure Investment Managers (AIIM), identified infrastructure, energy, telecommunications, and logistics as critical areas requiring sustained investment. Lawson detailed AIIM’s robust commitment, citing the firm’s $3.2 billion infrastructure portfolio in Nigeria which demonstrates a long-term strategic approach despite existing economic headwinds.
Danladi Verheijen, managing partner at Verod, focused on private equity’s role in propelling Nigeria’s growth. “While the country faces challenges, sectors such as technology and consumer goods present significant opportunities for long-term-focused investors,” he told Leadership. Verheijen encouraged increased participation from local investors, urging them to channel resources into these promising sectors to support Nigeria’s economic resurgence.
Andrew Alli, non-executive director at British International Investment (BII), reiterated BII’s substantial investment footprint in Nigeria, where the organisation has allocated $700 million across financial services, agribusiness, and infrastructure. Alli expressed confidence in Nigeria’s future prospects despite recent economic volatility and advocated for sustained investor confidence.
Adding to the diversity of perspectives, Genevieve Sangudi, partner at Alterra Capital Partners, highlighted emerging sectors such as artificial intelligence (AI) as attractive areas for resilient, forward-looking investments. She stressed that Nigeria’s potential remains formidable despite current challenges, encouraging investors to prioritise opportunities promising sustainable, long-term returns.
A significant development announced during the conference was the strategic merger between AVCA and the Private Equity and Venture Capital Association of Nigeria (PEVCA). This union is poised to strengthen Nigeria’s private capital ecosystem by leveraging AVCA’s global footprint alongside PEVCA’s deep local networks. The merger is expected to catalyse new investment opportunities and foster growth both within Nigeria and across African sub-regions, further enhancing continent-wide economic integration.
In terms of broader African investment trends, AVCA reported that the continent secured $3.6 billion in venture capital funding in 2024, including $1 billion attributed to venture debt. This figure underlines the expanding interest in Africa’s private capital markets and the growing appetite for venture capital as a mechanism to support innovation and entrepreneurship across various sectors.
The conference’s convergence of international and local investment leaders, combined with these strategic initiatives, underscores a pivotal moment for Africa’s economic trajectory, with Nigeria positioned as a focal point for renewed capital inflows and sectoral growth. These developments offer association executives and trade bodies insight into current investment dynamics and illuminate pathways for member organisations to engage with evolving opportunities in Africa’s private capital landscape.