A new report from TLP Advisory has uncovered the deep structural and informational barriers preventing Nigerian startups from listing on the Nigerian Exchange (NGX), raising concerns about long-term sustainability and local wealth creation within the country’s tech ecosystem.
According to the report, “Rethinking Funding & Exits: Nigeria’s Missing IPOs and the NGX”, 53% of founders identify lack of awareness about NGX listing processes as their biggest barrier. Despite the launch of the NGX Technology Board in 2022, no Nigerian tech company has listed to date.
The study also reveals that 46% of founders prefer exits through acquisitions, compared to just 21% who would consider an IPO. Meanwhile, 77% of startups raise venture funding in dollars but earn in naira, creating a currency mismatch that pushes companies toward offshore exits.
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Yet, there is room for optimism. Almost 42% of founders say they would consider an NGX listing if key reforms, improved liquidity, and stronger support structures were introduced.
Speaking at the report launch during the Africa Prosperity Summit, Odunoluwa Longe, Co-founder of TLP Advisory, said the problem is not a lack of ambition from founders, but a system that makes foreign exits more appealing.
“Nigeria’s startups have shown they can build globally competitive businesses, but too much value still flows offshore because viable local exit routes are limited,” Longe said. “With clarity, education, and confidence-building, the NGX can become a true platform for innovation and long-term wealth creation.”
The report highlights four major areas needing urgent action:
- Improved education and awareness through workshops and roadshows.
- Reforming listing requirements to simplify entry without compromising investor protection.
- Strengthening market liquidity through market-making and better investor participation.
- Addressing currency mismatches by deepening local capital pools and exploring cross-listing partnerships with NASDAQ, AIM, and the JSE.
Industry leaders, including executives from NGX, AltSchool Africa, LoftyInc Capital, and Ventures Platform, contributed insights to the report, which also benchmarked Nigeria against South Africa, Kenya, Egypt, Ghana, India, Brazil, the UK AIM, and the US NASDAQ.
TLP Advisory, widely known for co-drafting the 2023 Nigerian Startup Act and advising more than 250 clients, described the findings as a wake-up call for Nigeria’s digital economy.
The full report is available for free download on TLP Advisory’s website.
