Three years after the Nigerian Exchange Group (NGX) introduced its Technology Board, a dedicated listing segment designed to attract high-growth startups and deepen Nigeria’s capital markets, the platform has yet to record a single Initial Public Offering (IPO).
Despite the country’s thriving startup ecosystem, rising investor interest, and expanded regulatory support, not one venture-backed technology company has crossed the line to list shares on the local bourse.
The absence of listings is fuelling concerns about Nigeria’s slow pace in building a sustainable exit market for startups. Although venture capital inflows have surged over the past five years, with Nigerian founders raising hundreds of millions of dollars from global investors, the momentum has not translated into participation on the domestic capital markets. Instead, companies continue to rely heavily on foreign financing, offshore holding structures, and international exit ambitions.
Launched in 2022, the NGX Technology Board was designed to bridge this gap. It promised a dedicated framework tailored to the needs of tech-enabled companies, particularly high-growth startups seeking expansion capital, improved visibility, and long-term liquidity. The board introduced more flexible listing requirements, lighter reporting thresholds, and eligibility pathways for companies with strong revenue potential but limited profitability. It was also positioned as a major pillar of the government’s long-term strategy to deepen private sector investment and create viable exit routes for startups.
Yet, despite the fanfare, the board has struggled to attract its target market.
A new report titled: ‘Rethinking Funding & Exits,’ released by TLP Advisory, on Monday, points to a combination of structural and macroeconomic barriers that have weakened the board’s appeal.
Among them are Nigeria’s volatile currency, concerns around liquidity, and the deep-rooted preference for offshore markets by venture-backed founders, the report revealed.
Many Nigerian startups are incorporated in the United States or the United Kingdom, following the standard Delaware–London–Lagos structure common among venture-capital-backed African companies.
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The holding company and intellectual property typically sit outside Nigeria, giving investors a more stable legal jurisdiction and clearer exit options. As a result, even when businesses generate most of their revenue locally, they remain technically foreign entities with limited incentives to pursue a listing on a Nigerian exchange.
Liquidity is another major sticking point. Compared to global markets such as NASDAQ and the London Stock Exchange, the report revealed that Nigeria’s capital markets are considered shallow, meaning startups worry about whether shareholders will be able to trade their shares easily. Investors, particularly foreign backers who hold significant stakes in Nigerian startups, prefer markets with deeper pools of institutional capital and more predictable valuation benchmarks.
“Currency volatility also plays a significant role. With the naira experiencing wide swings over the past three years, many founders fear that listing locally could expose their companies to additional FX risks. Dollar-denominated revenue or investment structures can complicate financial reporting and make local listings less attractive. For tech companies dependent on global talent and cross-border operations, stable currency environments are crucial,” it stated.
Despite these challenges, Jude Chiemeka, CEO, Nigerian Exchange Limited (NGX) said the NGX has continued to court startups aggressively, revealing that the exchange has hosted multiple roundtables, policy dialogues and founder-focused engagements aimed at demystifying the listing process and addressing concerns around regulation, valuation and compliance. “In several of these sessions, NGX leaders have emphasized that a strong domestic capital market is essential for Nigeria’s long-term economic competitiveness,” he added.
Chiemeka reiterated that listing is not just about raising capital, it is about improving governance, earning public trust, and positioning companies for sustained global growth. “For startups that have already reached scale, a listing could unlock new investor classes, including pension funds and institutional asset managers that are currently restricted from investing in early-stage private companies,” he added.
Still, the market realities remain daunting. Many Nigerian startups are in growth phases funded primarily by venture capital, private equity, corporate investors or development finance institutions. These shareholders typically target high-value exits through trade sales, secondary transactions or international listings, rather than through Nigerian exchanges.
Industry insiders say that for the NGX Technology Board to gain traction, Nigeria must address the broader economic environment, especially currency stability, investor confidence, and regulatory predictability. Government-led reforms, including those tied to the Nigeria Startup Act, have created optimism, but analysts argue that the reforms must be matched with practical market incentives and fully implemented.
Some stakeholders believe the tide could shift as more Nigerian startups mature. Companies in fintech, digital commerce, mobility, energy tech and enterprise solutions are reaching impressive revenue scales and may soon begin exploring diversified capital options. As capital flows to African startups tighten globally, founders might also become more open to domestic funding channels that were previously overlooked.
There is also growing pressure from local investor groups and ecosystem leaders who argue that Nigeria must build its own exit market to keep more value within the economy. Without a functional domestic IPO pipeline, much of Nigeria’s startup wealth will continue to be created and realized offshore, benefitting foreign markets more than local ones.
For now, however, the NGX Technology Board remains a work in progress, symbolic of Nigeria’s ambitions but constrained by Nigeria’s economic realities. The exchange insists the board will eventually succeed, but its long-term relevance depends largely on whether policymakers, investors and startups can collectively build the confidence and economic conditions required to bring Nigeria’s high-growth companies home.
Three years on, the promise is still alive. But the ultimate test—Nigeria’s first tech IPO, remains elusive.
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