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.

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Data from the Nigerian Exchange (NGX) shows total trading activity hit ₦1.82 trillion ($1.18 billion) in July, more than doubling the ₦778.65 billion ($509.02 million) recorded in June. Domestic investors led with ₦1.67 trillion, a 161% rise, while foreign transactions inched up by 4.76% to ₦145.95 billion.

Although institutional investors accounted for 69.06% of domestic trades, the rapid growth of retail participation is being fuelled by stockbrokers, fintechs, and investment firms rolling out mobile-first brokerage platforms.

Central Securities Clearing System (CSCS) figures show that between January and May, just five brokerage firms captured 70% of new accounts, with Bamboo (via Lambeth Capital) leading with nearly 48,000, followed by Afrinvest (34,473) and Meristem (9,041).

“Traditional minimum investment thresholds of ₦100,000 to ₦500,000 immediately exclude most Nigerians,” said Oluwagbenga Magbagbeola, MD of Sycamore Investment and Asset Management. “Technology now enables fractional and micro-investments, allowing people to start with as little as ₦8,000, which significantly expands the potential investor base.”

The NGX has also taken note. In 2024, it launched NGX Invest, a digital offering platform designed to improve capital flows between investors and the market.

“In Nigeria, 74% of the population is under 24 years. This demographic requires us to digitise our processes and engage them through technology they understand, like apps and digital platforms,” said Emomotimi Agama, DG of the Securities and Exchange Commission (SEC).

Traditional institutions are also shifting. Stanbic IBTC now offers BluNest, Sterling Bank has Doubble, while Meristem operates Meritrade. Fintechs like Cowrywise and Sycamore have also expanded into equities trading.

As inflation and naira volatility push Nigerians toward value-preserving assets, Cowrywise recently urged users to join its equities waitlist, citing the NGX’s 15% historical average return versus bank savings rates of 2–5%. More than 12,000 people signed up in under a week.

Magbagbeola believes competition will increasingly centre on data-driven personalisation.

“The most intense competition will emerge around who can best leverage customer data to deliver personalised investment strategies. This is a sharp departure from the traditional one-size-fits-all fund approach.”

Analysts say just as fintechs disrupted payments and boosted financial inclusion, a similar retail-driven disruption may be underway in Nigeria’s investment sector.

“The winners will be those who combine institutional-grade investment expertise with fintech’s accessibility and user-centricity,” Magbagbeola said.

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