A new report by TLP Advisory has revealed deep-rooted structural, financial, and regulatory barriers preventing Nigeria’s fast-growing startups from listing on the Nigerian Exchange (NGX), despite reforms introduced through the NGX Technology Board in 2022.

The report: “Rethinking Funding & Exits: Nigeria’s Missing IPOs and the NGX,” warns that the absence of local listings threatens long-term sustainability, wealth creation, and investor confidence in Africa’s largest startup ecosystem.

According to the findings, founders remain poorly informed about the listing process. More than half of respondents (53%) say they do not have sufficient knowledge of NGX requirements. This lack of understanding also shapes current exit preferences: nearly half (46 per cent) of the founders surveyed prefer acquisitions, while only 21% would consider an IPO — and many of those favour foreign exchanges.

One of the strongest deterrents, the report notes, is currency mismatch. About 77 per cent of funded Nigerian startups raise capital in US dollars but earn revenues in naira, creating a built-in incentive to seek offshore exits that better match their funding structure.

Other concerns raised by founders include high compliance costs and fears of undervaluation (26 per cent), as well as limited market liquidity on the NGX (16%).

Yet, TLP Advisory observes that appetite for local listings does exist if conditions improve. About 42 per cent of founders say they would consider listing on the NGX with the right reforms, and more than half express overall positive sentiment toward the exchange.

Speaking at the report launch during the Africa Prosperity Summit hosted by Ventures Platform, Co-founder of TLP Advisory, Odunoluwa Longe, said the scarcity of listings is not due to a lack of ambition.

“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,” she said. “The issue isn’t founder ambition or rejection of the NGX; it’s a disconnect driven by information gaps, perceived illiquidity, and currency mismatch that makes dollar-denominated exits more attractive,” he said.

Longe noted that better alignment between regulators, founders, investors, and policymakers is essential to reposition the NGX as a credible platform for growth-stage innovation.

“With clarity, practical education, and confidence-building, we can turn the NGX into a genuine platform for long-term wealth creation in Nigeria,” she added.

Founder and CEO of AltSchool Africa, Adewale Yusuf, agreed that the exchange must deepen engagement with the tech ecosystem.

“The NGX needs to actively engage founders and use them as channels to show what’s possible,” he said. “Many of us don’t fully understand the process or requirements. With clear structures and educational support, confidence in the local market will grow.”

In 2023, the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, announced plans to collaborate with NGX to encourage tech listings via the newly launched Technology Board — part of broader efforts to diversify the economy. At the time, NGX CEO Temi Popoola pledged the Exchange’s commitment to strengthening innovation and attracting mature tech companies to list locally.

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