A new report from TLP Advisory has revealed that a widespread lack of awareness about the Nigerian Exchange (NGX) listing process is stalling potential tech IPOs and limiting local exit opportunities for Nigeria’s high-growth startups.
The study, titled “Rethinking Funding & Exits: Nigeria’s Missing IPOs and the NGX”, highlights significant structural and educational barriers preventing technology companies from pursuing listings on the NGX’s Technology Board, launched in 2022. Despite the Board’s creation, no tech firm has listed to date.
According to the report, 53% of surveyed founders said they lacked sufficient knowledge of the NGX listing process, identifying this as the main obstacle to pursuing a local IPO. Exit preferences further widen the gap: nearly half of founders (46%) favour acquisitions, compared with only 21% considering an IPO—many of whom prefer listing on foreign exchanges.
The research also spotlights deeper market challenges. A large majority of funded startups (77%) raise capital in dollars while generating revenue in naira, a structural mismatch that pushes founders toward offshore exits. In addition, 26% cited compliance costs and potential undervaluation as key concerns, while 16% pointed to limited market liquidity. Yet there remains meaningful interest in domestic options, with 42% open to listing on the NGX if reforms are introduced, and more than half expressing positive sentiment overall.
Speaking at the report launch during the Africa Prosperity Summit (APS), hosted by Ventures Platform, Odunoluwa Longe, Co-founder of TLP Advisory, 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 founder ambition or rejection of the NGX; it’s a disconnect propelled by information gaps, perceived illiquidity, and a currency mismatch that makes dollar-denominated exits more attractive for venture-backed companies. With clarity, practical education, and confidence-building—and by aligning regulators, founders, investors, and policymakers—we can turn the NGX into a genuine platform for growth-stage innovation and long-term wealth creation in Nigeria.”
The publication is the first detailed assessment of startup readiness for local listings in Nigeria. It draws on desk research, a founder survey, and expert interviews with stakeholders including Jude Chiemeka (CEO, Nigerian Exchange Limited – NGX), Adekunle Awojobi (CEO, Honnete Solutions Limited and former CEO of FBN Trustees), Adewale Yusuf (Founder, AltSchool Africa), Idris Bello (Founding Partner, LoftyInc Capital Management), and Dolapo Morgan (Investment Principal, Ventures Platform).
Benchmarking Nigeria against peer markets—South Africa, Kenya, Egypt, Ghana, India, and Brazil—and mature exchanges such as the UK’s AIM and the US NASDAQ, the report outlines practical models for enabling domestic listings. India’s success in mobilising local capital through pension reform is highlighted as a blueprint Nigeria could adapt.
To unlock Nigeria’s capital markets and encourage more homegrown IPOs, TLP Advisory recommends:
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Enhancing Education & Awareness: Roadshows, workshops, and accessible playbooks to help founders and investors better understand the listing pathway.
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Reforming Regulatory & Listing Frameworks: Streamlined requirements that maintain transparency while reducing friction for high-growth companies.
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Boosting Market Liquidity & Investor Participation: Improved market-making mechanisms, stronger institutional involvement, and incentives for retail investors.
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Addressing Currency Mismatch: Strengthening local capital pools and exploring dual-listing partnerships with exchanges such as NASDAQ, AIM, and the JSE.
Adewale Yusuf, Founder and CEO of AltSchool Africa, underscored the importance of greater founder engagement, saying "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."
Since its launch in 2014, TLP Advisory has advised more than 250 clients in Nigeria’s technology and venture ecosystem on institutional investment, M&A, intellectual property, and expansion strategies. It was one of only two law firms involved in drafting the 2023 Nigerian Startup Act and, through its legal-tech platform DIYLaw, has supported over 200,000 businesses.
Supported by Wimbart, Ventures Platform, and other partners, the new report serves as a timely call to action for policymakers, investors, and ecosystem builders aiming to strengthen Nigeria’s digital economy and boost onshore wealth creation.
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