Several factors, including a lack of awareness, have been linked to low interest by technology startups in listing their shares on the Nigeria Exchange Group (NGX).

A new report, titled ‘Rethinking Funding and Exits: Nigeria’s Missing IPOs and the NGX’, authored by TLP Advisory, a cross-border venture law practice with its origins in Nigeria, uncovered systemic barriers that prevent Nigeria’s high-growth startups from listing on the local exchange, posing a risk to long-term sustainability and local wealth creation in Africa’s largest economy.

Despite the launch of the NGX Technology Board in 2022, there have been no tech listings to date. Surveyed founders point to a clear knowledge gap, with a majority (53 per cent) stating they are not sufficiently aware of the NGX listing process. This information gap is compounded by exit preferences, with nearly half (46 per cent) favouring acquisitions, compared with about one in five (21 per cent) who would consider an IPO – many of whom aspire to list on foreign exchanges.

The TLP Advisory report found that the majority (77 per cent) of funded startups raise in dollars but earn revenue in naira, creating a strong incentive for offshore exits.

Further, a minority cite market frictions, where 26 per cent point to compliance costs and potential undervaluation, while a smaller share (16 per cent) highlighted limited market liquidity as a key concern.
Yet, there is appetite for a local solution, with around two in five (42 per cent) open to an NGX listing if the right reforms are in place, and more than half expressing positive sentiment overall.


Speaking at the report launch at the Africa Prosperity Summit (APS), hosted by Ventures Platform, Co-founder of TLP Advisory, Odunoluwa Longe, said: “Nigeria’s startups have proven they can build globally competitive businesses, but too much value still flows offshore because viable local exit routes are limited. Our report shows the issue isn’t the founder’s ambition or rejection of the NGX. It is a disconnect propelled by information gaps, perceived illiquidity and a currency mismatch that makes dollar-denominated exits more attractive for venture-backed companies.

By combining qualitative insights from founders, investors, and advisers with cross-market analysis, the report provided a clear, actionable view of how to enable startup listings and exits – with India’s mobilisation of domestic capital, supported by pension reform, highlighted as a practical blueprint to adapt.

To bridge this critical gap and unlock Nigeria’s capital markets, TLP Advisory urged key stakeholders to implement some recommendations.

This includes enhancing education and awareness. The report said continuous engagement through roadshows, workshops, and practical playbooks can equip founders, investors, and advisers with the knowledge needed to navigate local listings effectively.

TLP also stressed the importance of reforming regulatory and listing frameworks. It said simplifying requirements and documentation, while maintaining transparency and investor protection, will make the NGX more accessible to high-growth startups.

The report also raised the need for market liquidity and investor participation. It said strengthening liquidity through market-making mechanisms, broader institutional participation and incentives for retail investors will create a more vibrant, investable ecosystem.

According to the report, there is also a need to address currency mismatch. TLP said deepening local capital pools and exploring dual or cross-listing partnerships with exchanges such as NASDAQ, AIM, and the JSE can reduce reliance on offshore exits and support sustainable local growth.

Founder and CEO of AltSchool Africa, Adewale Yusuf, emphasising the need for greater awareness, said: “The NGX needs to actively engage founders and use them as channels to show what’s possible on the exchange. Local investors also need to step in. Many of us don’t fully understand the process or requirements. By putting clear structures and educational support in place, founders can see exactly what it takes to list, and confidence in the local market will grow.”