Overview
The decision of the Central Bank of Nigeria (CBN) to sanction a number of banks citing gross misconduct and mismanagement in 2009, coupled with the global recession, led to some uncertainty and an inevitable downturn in the corporate and banking sector. However, the recent restructuring of the banking sector, including the introduction by the CBN of a new universal banking model, has assisted a revival in capital markets work, projects and M&A activity, with a knock-on effect in the energy sector.
The mood is one of optimism among law firms, which have renewed efforts to recruit high-calibre associates and are generally looking to expand, either locally or in foreign jurisdictions. That said, firms continue to benefit from their collaborations with other international law firms; these include Allen & Overy LLP, which has a particularly strong presence in a number of practice areas; and Cleary Gottlieb Steen & Hamilton LLP, which has been particularly active in corporate and M&A.
Stephenson Harwood continues to act on a number of disputes, and has increased its profile generally by working together with the Africa Legal Network.
April 2010 saw the signing into law of the Nigerian Content Development Act 2010, which has led to an avalanche of enquiries about compliance issues from local and foreign companies wishing to establish themselves or otherwise invest in the region. Litigation is expected to pick up as the Act starts to take effect, and also with the Nigerian elections due to take place in early 2011.
Firms are also continuing to consider the possible implications of the long-awaited Petroleum Industry Bill, which remains plagued by disputes over proposed new fiscal terms.