Vest Acquico Ltd, a Nigerian special purpose investment vehicle, has lodged a petition with the Securities and Exchange Commission of Nigeria (SEC) after the failure of its NGN 60.5 billion (approximately USD 42 million) bid to acquire a controlling stake in Cornerstone Insurance Plc, one of Nigeria’s longest-standing insurance companies.
The planned transaction involved the purchase of a 79 per cent equity stake from entities linked to Africa Capital Alliance (ACA), a prominent private equity firm with investments across West Africa. Vest Acquico, which was formed in 2025 to facilitate this acquisition, stated that it had complied with all stipulated requirements, including the provision of a bank guarantee worth NGN 60.5 billion through Wema Bank Plc on 29 August 2025.
However, according to correspondence reported in Nigerian business media, the sellers declined to finalise the share purchase agreement and subsequently returned the bank guarantee on 3 September. Vest Acquico has argued that this reversal undermines investor confidence in Nigeria’s financial services sector and has requested regulatory intervention from the SEC.
Reports also suggest that Vest Acquico notified the National Insurance Commission of Nigeria (NAICOM) as well as regulators in Mauritius, where certain ACA-linked investment vehicles are registered. According to Tekedia, a Pan-African business platform, the share purchase agreement had already been agreed “in form” before the withdrawal by the sellers.
The petition coincides with the implementation of Nigeria’s new Insurance Reform Act, which seeks to improve governance standards, strengthen oversight mechanisms, and enhance market transparency in the country’s insurance industry. Analysts have observed that the dispute highlights persistent challenges associated with execution risk in large-scale financial transactions in emerging markets.
While the matter remains under regulatory review, it underscores the broader realities of investment negotiations across Africa, where cross-border capital flows, regulatory frameworks, and market trust continue to shape the trajectory of mergers and acquisitions. The case also reflects a growing tension between institutional investors seeking market stability and local realities that complicate transactional certainty in key financial sectors. In
