Nigerian Companies Embrace Equity Financing Amid Rising Interest Rates

Nigerian firms are shifting towards equity financing as high interest rates make debt less attractive. The Nigerian Stock Exchange (NGX) has seen a substantial increase in market capitalization, with Nigerian Breweries taking the lead in raising equity capital.

In 2024, the NGX's total market capitalization surged to N65.3 trillion, with Nigerian Breweries accounting for a significant portion. The brewery raised N548.7 billion through a rights issue, showcasing a trend of non-bank companies raising substantial growth capital through public offers and private placements.