A new report by TLP Advisory says Nigeria’s top startups are avoiding listing on the Nigerian Exchange (NGX) due to currency risks, low awareness about the listing process, and fears of undervaluation.
The report, “Rethinking Funding & Exits: Nigeria’s Missing IPOs and the NGX,” warns that the absence of local tech IPOs is limiting long-term wealth creation in Africa’s biggest startup ecosystem.
According to the findings, more than half of the surveyed founders (53%) say they don’t understand how to list on the NGX. Nearly half (46%) prefer to exit through acquisitions, while only 21% would consider an IPO — and many of those prefer foreign stock exchanges.
One of the biggest challenges is currency mismatch. The report notes that 77% of funded Nigerian startups raise investment in U.S. dollars but earn revenue in naira, creating pressure to seek exits abroad where valuations are dollar-based.
Founders also highlighted concerns about compliance costs, the risk of being undervalued, and weak liquidity on the local exchange.
TLP Advisory co-founder Odunoluwa Longe said the issue is not a lack of ambition among Nigerian founders but a lack of clarity and confidence in the local market.
“With the right reforms and better engagement from regulators, the NGX can become a real platform for long-term wealth creation,” she said at the report’s launch during the Africa Prosperity Summit.
AltSchool Africa CEO Adewale Yusuf added that many founders simply lack information about how to list and need the NGX to actively engage them.
