Low awareness stalls tech listings on NGX – TLP Advisory

About 53 per cent of start-up founders have cited a lack of awareness as the primary barrier to listing on the Nigerian Exchange Limited.

This was disclosed in the latest report from cross-border venture law practice TLP Advisory, titled “Rethinking Funding & Exits: Nigeria’s Missing IPOs and the NGX.”

The PUNCH reports that the NGX secured the approval of the Securities and Exchange Commission to float its NGX Technology Board on 15 December 2022. The NGX Technology Board is a specialised platform for technology-based companies to list and raise capital on the Exchange. Through the Board, NGX aims to encourage investments in indigenous technologically inclined companies and others across Africa, provide greater visibility to these companies, and ultimately deepen the Nigerian capital market.

However, the new report indicated that there have been no tech listings to date, with start-up founders pointing 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 finds that the majority (77 per cent) of funded start-ups raise in dollars but earn revenue in naira, creating a strong incentive for offshore exits. Furthermore, a minority cite market frictions: 26 per cent point to compliance costs and potential undervaluation, while a smaller share (16 per cent) highlight 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 hosted by Ventures Platform, co-founder of TLP Advisory, Odunoluwa Longe, said, “Nigeria’s start-ups 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.”

TLP Advisory’s report is the first Nigeria-focused assessment of start-up readiness for local listings and sets out practical frameworks to unlock the NGX. It draws on desk research, a founder survey, and interviews with stakeholders, including Jude Chiemeka (CEO, Nigerian Exchange Limited – NGX), Adekunle Awojobi (CEO, Honnete Solutions Limited & former CEO of FBN Trustees), Adewale Yusuf (Founder, AltSchool Africa), Idris Bello (Founding Partner, LoftyInc Capital Management), and Dolapo Morgan (Investment Principal, Ventures Platform).

The study benchmarks Nigeria against six peer markets, South Africa, Kenya, Egypt, Ghana, India, and Brazil, as well as two mature exchanges, the UK’s Alternative Investment Market and the US NASDAQ.

To bridge this critical gap and unlock Nigeria’s capital markets, TLP Advisory urges key stakeholders to implement the following recommendations: enhancing education and awareness through continuous engagement via roadshows, workshops, and practical playbooks; reforming regulatory and listing frameworks by simplifying requirements while maintaining transparency; strengthening market liquidity through market-making mechanisms and broader institutional participation; and addressing currency mismatch by deepening local capital pools and exploring dual or cross-listing partnerships with exchanges such as NASDAQ, AIM, and the JSE.

Adewale Yusuf, Founder and CEO of AltSchool Africa, emphasised the need for greater awareness, 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.”

Launched in 2014, TLP Advisory has advised over 250 clients in the Nigerian technology and venture ecosystem on transactions spanning institutional investments, M&A, intellectual property, and international expansion strategies.