Nigeria’s Tech Sector Faces IPO Gap Despite Record Growth
TLDR
- Nigeria’s startup ecosystem has expanded rapidly in recent years, marked by record fundraising, the rise of unicorns, and broader regional expansion
- Despite the launch of a dedicated Technology Board on the Nigerian Exchange (NGX) in 2022, the platform remains empty in 2025
- A large share of Nigeria’s startups raise capital in dollars but earn revenue in naira, creating a currency mismatch that discourages exits through NGX listings
Nigeria’s startup ecosystem has expanded rapidly in recent years, marked by record fundraising, the rise of unicorns, and broader regional expansion. Yet one element remains missing: local IPOs. Despite the launch of a dedicated Technology Board on the Nigerian Exchange (NGX) in 2022, the platform remains empty in 2025.
A new report by TLP Advisory, Rethinking Funding & Exits, examines why. Drawing on interviews with founders, investors and capital-markets players, as well as a survey of 36 startups, the report points to structural barriers limiting public listings.
A large share of Nigeria’s startups raise capital in dollars but earn revenue in naira, creating a currency mismatch that discourages exits through NGX listings. Market liquidity is another concern; with no track record of tech IPOs, founders doubt the ability of public investors to absorb volume or offer fair pricing.
Many founders also lack clarity on the listing process. More than half of surveyed startups said they did not understand the steps or costs involved. Compliance requirements and board thresholds—₦50 million for the Growth Board and ₦420 million for the Technology Board—create further uncertainty.
The report argues that solving these gaps is essential if Nigeria wants to retain value within its local economy.
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Key Takeaways
TLP’s analysis suggests that Nigeria is at a critical moment where policy, market needs and investor interest are aligned—but the capital-markets infrastructure has not caught up with the country’s startup momentum. While founders are not opposed to a local IPO, they see limited liquidity, unclear valuation methods and complex listing requirements as major deterrents. The report identifies a roadmap to change this, including more targeted engagement between NGX and the tech ecosystem, clearer educational materials, simplified listing rules and stronger institutional participation to deepen liquidity. The study highlights global comparisons: India, Brazil and South Africa all saw increases in tech listings after targeted reforms. For Nigeria, the aim is not only to create an exit path but to ensure that more of the sector’s value is captured domestically. Founders surveyed say they would consider NGX listings if liquidity improves and fair valuation becomes possible. The first successful tech IPO, the report concludes, could unlock a new phase for Nigeria’s public markets.
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