An Overview of Nigerian Venture Capital and Private EquitySummary Nigeria faces an uncertain future as outbreaks of ethnic and religious violence continue to challenge tough test the most populous country in Africa. As the 2003 elections approach, the ongoing battle between incumbent politicians and between competing ethnic and regional groups is likely to intensify. Such an environment will test Nigeria's fragile democracy, which has never seen a transfer of power from one civilian government to another. The Nigerian government should continue economic liberalization, at a slow pace. The government's main challenges will be to cut spending, accelerate the pace of its privatization program, liberalize domestic fuel subsidies, improve the country's infrastructure and improve internal security. The challenges and constraints faced by private equity investors in Nigeria can be grouped into three areas: · Macro/National Factors, · Sector Specific Factors, · Company Specific Factors.