Why Nigeria Has Zero Tech IPOs: New Report Exposes Low Awareness as Major Barrier
A new report by TLP Advisory has revealed why Nigeria has not recorded a single technology listing on the Nigerian Exchange Limited (NGX) — despite launching a special NGX Technology Board nearly three years ago.
According to the report titled “Rethinking Funding & Exits: Nigeria’s Missing IPOs and the NGX,” a majority of Nigerian start-up founders simply do not understand how the NGX listing process works.
Key Findings From the TLP Advisory Report
1️⃣ Low Awareness Is the Biggest Obstacle
• 53% of start-up founders admit they are not aware of how to list on the NGX.
• This lack of knowledge is the number one reason Nigerian tech companies are not going public locally.
2️⃣ Founders Prefer Acquisitions Over IPOs
• 46% prefer acquisitions as their exit route.
• Only 21% would consider an IPO — and many of them want to list outside Nigeria.
3️⃣ Currency Mismatch Makes Offshore Listings Attractive
• 77% of funded start-ups raise money in dollars but earn revenue in naira.
• This pushes them toward foreign exchanges where valuations are higher and dollar exits are easier.
4️⃣ Market Concerns Still Exist
Founders also cite:
• Compliance costs & undervaluation – 26%
• Low market liquidity – 16%
Despite these concerns, 42% said they are open to listing on NGX if the right reforms happen.
What Industry Leaders Are Saying
Co-founder of TLP Advisory, Odunoluwa Longe, emphasized that Nigeria’s biggest issue isn’t lack of ambition — but lack of information and confidence.
“Our report shows it’s not a rejection of NGX. It’s a disconnect created by poor awareness, perceived illiquidity, and currency mismatch… With clarity, education, and collaboration, NGX can become a true platform for innovation and wealth creation.”
Other stakeholders interviewed include:
• Jude Chiemeka (CEO, NGX)
• Adewale Yusuf (Founder, AltSchool Africa)
• Idris Bello (LoftyInc)
• Dolapo Morgan (Ventures Platform)
Yusuf added that the NGX must actively engage founders and simplify the path to listing:
“Many of us don’t fully understand the process. With clear structures and support, confidence will grow.”
Benchmarking Nigeria
The study compares Nigeria’s ecosystem with:
• South Africa
• Kenya
• Egypt
• Ghana
• India
• Brazil
• UK’s AIM
• US NASDAQ
The goal is to highlight what works in other markets and how Nigeria can adapt.
TLP Advisory’s Recommendations
To unlock tech listings on NGX, they propose:
1. Increase Education & Awareness
• Roadshows
• Workshops
• Practical step-by-step playbooks
⚖️ 2. Reform Regulations
• Simplify listing requirements
• Maintain transparency
3. Boost Market Liquidity
• Market makers
• More institutional investor participation
4. Solve Currency Mismatch
• Deepen naira-based funding pools
• Encourage dual/cross-listings with NASDAQ, AIM, JSE
✨ Why This Matters
A functioning tech listing ecosystem will:
• Keep more value within Nigeria
• Create wealth for local investors
• Boost confidence in the NGX
• Support long-term growth of Nigeria’s tech economy
A new report by TLP Advisory has revealed why Nigeria has not recorded a single technology listing on the Nigerian Exchange Limited (NGX) — despite launching a special NGX Technology Board nearly three years ago.
According to the report titled “Rethinking Funding & Exits: Nigeria’s Missing IPOs and the NGX,” a majority of Nigerian start-up founders simply do not understand how the NGX listing process works.
Key Findings From the TLP Advisory Report
1️⃣ Low Awareness Is the Biggest Obstacle
• 53% of start-up founders admit they are not aware of how to list on the NGX.
• This lack of knowledge is the number one reason Nigerian tech companies are not going public locally.
2️⃣ Founders Prefer Acquisitions Over IPOs
• 46% prefer acquisitions as their exit route.
• Only 21% would consider an IPO — and many of them want to list outside Nigeria.
3️⃣ Currency Mismatch Makes Offshore Listings Attractive
• 77% of funded start-ups raise money in dollars but earn revenue in naira.
• This pushes them toward foreign exchanges where valuations are higher and dollar exits are easier.
4️⃣ Market Concerns Still Exist
Founders also cite:
• Compliance costs & undervaluation – 26%
• Low market liquidity – 16%
Despite these concerns, 42% said they are open to listing on NGX if the right reforms happen.
What Industry Leaders Are Saying
Co-founder of TLP Advisory, Odunoluwa Longe, emphasized that Nigeria’s biggest issue isn’t lack of ambition — but lack of information and confidence.
“Our report shows it’s not a rejection of NGX. It’s a disconnect created by poor awareness, perceived illiquidity, and currency mismatch… With clarity, education, and collaboration, NGX can become a true platform for innovation and wealth creation.”
Other stakeholders interviewed include:
• Jude Chiemeka (CEO, NGX)
• Adewale Yusuf (Founder, AltSchool Africa)
• Idris Bello (LoftyInc)
• Dolapo Morgan (Ventures Platform)
Yusuf added that the NGX must actively engage founders and simplify the path to listing:
“Many of us don’t fully understand the process. With clear structures and support, confidence will grow.”
Benchmarking Nigeria
The study compares Nigeria’s ecosystem with:
• South Africa
• Kenya
• Egypt
• Ghana
• India
• Brazil
• UK’s AIM
• US NASDAQ
The goal is to highlight what works in other markets and how Nigeria can adapt.
TLP Advisory’s Recommendations
To unlock tech listings on NGX, they propose:
1. Increase Education & Awareness
• Roadshows
• Workshops
• Practical step-by-step playbooks
⚖️ 2. Reform Regulations
• Simplify listing requirements
• Maintain transparency
3. Boost Market Liquidity
• Market makers
• More institutional investor participation
4. Solve Currency Mismatch
• Deepen naira-based funding pools
• Encourage dual/cross-listings with NASDAQ, AIM, JSE
✨ Why This Matters
A functioning tech listing ecosystem will:
• Keep more value within Nigeria
• Create wealth for local investors
• Boost confidence in the NGX
• Support long-term growth of Nigeria’s tech economy