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Citigroup Sees Vanishing Nigerian Deals on Devaluation Fears

  • Mergers and acquisitions plummet on naira devaluation fears
  • Buying opportunity emerging, Citigroup's Azevedo says
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Citigroup Inc. said deals in Nigeria, Africa’s biggest oil producer, have plummeted because investors are too scared to spend money when it’s expected that the naira will have to be devalued.

“I see this as a year of pause,” Miguel Melo Azevedo, Citigroup’s head of investment banking for Africa, who helped sell dollar debt for countries including Nigeria and Morocco, said in an interview in Cape Town. “You will look very stupid if you buy something in Nigeria and tomorrow it gets devalued. There’s an embarrassment factor.”