Nigeria’s technology sector has spent years attracting venture capital, angel investors and private equity funding. Yet one potentially significant source of financing remains largely untouched: the Nigerian stock market.
In December 2022, the Nigerian Exchange (NGX) introduced its Technology Board, designed to give technology-driven businesses an alternative route to raising capital. The initiative was expected to connect startups with retail investors, institutional investors and high-net-worth individuals while creating new opportunities for public investment in Nigeria’s growing technology ecosystem.
Nearly four years later, however, the board remains without a single startup listing.
The absence of listings raises questions about whether Nigeria’s technology companies are ready for the public market, whether the NGX has done enough to attract them, and whether the country’s economic and regulatory environment is discouraging businesses from taking the plunge.
Despite the potential benefits of going public, founders and industry professionals say concerns about policy uncertainty, economic volatility, disclosure requirements and the complexity of the listing process continue to make traditional private funding more attractive.
Why Has No Nigerian Tech Startup Listed on the NGX?
The Technology Board was established to broaden funding opportunities for technology companies beyond the conventional investment channels of venture capitalists, angel investors, private equity firms and startup accelerators.
The idea was straightforward: give technology businesses access to public capital while allowing Nigerians to invest directly in the growth of companies operating in the sector.
Yet, according to TheCable’s reporting, none of the more than 900 Nigerian startups tracked by Crunchbase had used the country’s stock market to raise capital through the initiative.
For Olajuwon Abayomi, general manager of Termii Group, the problem may partly lie in the gap between announcing an opportunity and helping businesses understand how to take advantage of it.
He argued that simply introducing the Technology Board was not enough. Companies needed practical guidance on the listing process, alongside clear explanations of the benefits of going public.
Without sustained engagement, founders may remain unaware of the requirements, procedures and potential advantages of listing on the exchange.
Abayomi also questioned whether the incentives for joining the board had been communicated effectively to the startup community.
Jafar Alabi Zubair, co-founder and vice-president of product and business development at Scandium Systems, identified a similar challenge: familiarity.
According to Zubair, most startup founders are accustomed to seeking funding from venture capital firms and angel investors. Public listings are not usually the first option they consider when planning their companies’ growth.
He added that uncertainty about the time, effort and administrative demands involved in listing could discourage businesses from exploring the opportunity.
For the NGX, this suggests that attracting technology companies will require more than providing a platform. It will also mean educating founders, simplifying the process where possible and demonstrating why a public listing could make business sense.
Funding Is Falling, but Startups Still Prefer Private Investors
The reluctance to list comes at a time when fundraising conditions for Nigerian technology companies appear to be tightening.
In 2025, Nigerian tech companies raised $343 million from private investors, down from $410 million in 2024. That represents a year-on-year decline of approximately 16.3 percent.
The reduction highlights the importance of developing alternative funding channels, particularly as startups compete for a smaller pool of investment capital.
Nevertheless, companies have yet to embrace the NGX Technology Board as a meaningful alternative to private funding.
Industry participants point to broader economic challenges as a major part of the explanation.
Abayomi said Nigeria’s macroeconomic conditions could affect how founders assess their prospects for growth and long-term investment. Companies may be less willing to list locally when they believe the country’s economic outlook is difficult to predict.
He noted that some Nigerian startups are already listed, or are considering listings, in markets such as the United States because they perceive those markets as more established and predictable.
For businesses planning years of expansion, access to capital is only one consideration. They must also evaluate the stability of the market in which their shares will trade and the broader conditions that could influence investor confidence.
Until Nigeria establishes a stronger track record of predictable economic growth, local listings may struggle to compete with opportunities available overseas.
Policy Uncertainty and Public Disclosure Are Keeping Founders Away
Beyond economic conditions, concerns about government policy and corporate transparency appear to be weighing on founders’ decisions.
Abayomi Adewuyi, a software engineer at E-Doc Online, a technology company that provides artificial intelligence analytics to banks, identified policy inconsistency as one reason companies may hesitate to enter the public market.
In his view, businesses operating in Nigeria face the risk that sudden policy changes could disrupt their products, revenue streams or business models.
For a technology startup operating on tight margins, such uncertainty can make long-term planning particularly difficult.
Adewuyi explained that some founders worry that a new government policy could significantly affect their businesses after they have committed to the additional responsibilities associated with being publicly listed.
He also highlighted the disclosure obligations that accompany public ownership.
Once a company lists its shares, its financial performance and other required information become subject to public disclosure. Although transparency can strengthen investor confidence, some founders may prefer to keep detailed information about their businesses private while they continue to grow.
Zubair echoed that concern, noting that not every startup is ready to make its financial records and progress visible to the wider public.
Some companies may prefer to reach specific growth targets before considering a listing. Others may want greater control over when and how information about their performance becomes public.
For these businesses, remaining privately funded offers a degree of flexibility that a public listing may not provide.
The challenge for the NGX is to convince founders that the benefits of accessing public capital can outweigh the additional scrutiny and compliance obligations.
Are Nigerian Tech Companies Ready for the Stock Market?
Not all industry leaders view the Technology Board’s slow start as a reason to abandon the idea.
Rodney Jackson-Cole, co-founder and chief executive officer of Bani Africa, described the initiative as a positive development, arguing that Nigeria’s capital market could provide a valuable destination for technology companies seeking an exit.
In the startup world, an exit is an important consideration for founders and investors who eventually want to realise returns on their investments. Two common routes are an initial public offering (IPO) and a company sale.
However, locally based technology companies have had relatively few public-listing opportunities, leaving the domestic market with limited examples of successful tech IPOs.
Jackson-Cole believes a technology-focused listing platform could help address that gap and create additional value within Nigeria’s capital market.
He nevertheless questioned how accessible the listing process would be for startups and whether the necessary policies and procedures were sufficiently straightforward.
His comments reflect a wider concern among founders: establishing a stock exchange platform is only the first step. Businesses must also be able to navigate the requirements without facing unnecessary complexity.
Jackson-Cole said Bani Africa was not planning to list in the immediate future, illustrating that support for the concept does not automatically translate into an intention to participate.
For the Technology Board to succeed, the NGX will need to demonstrate that it offers a practical, accessible route to raising funds rather than simply another option on paper.
What the Nigerian Government Can Do to Attract Tech Startups
Industry professionals believe government action will be crucial to changing how technology companies view the local stock market.
1. Build a More Predictable Economy
Abayomi argued that sustained macroeconomic improvement would help create the conditions necessary for more companies to consider listing.
He acknowledged efforts to address foreign exchange management, inflation and currency-related challenges but said the benefits had yet to translate sufficiently into stronger purchasing power for ordinary Nigerians.
That matters because consumers’ ability to spend directly affects the businesses serving them.
When households have more disposable income, businesses may benefit from stronger demand, while investors could have more money available to purchase shares.
At present, many Nigerians are prioritising essential expenses such as food and mobile data rather than investing in the stock market.
Abayomi believes consistent improvements in purchasing power could eventually strengthen the domestic investor base and make local listings more attractive.
2. Maintain Consistent Government Policies
Adewuyi called for greater policy stability, arguing that businesses need confidence that government decisions will not unexpectedly undermine their operations.
He acknowledged efforts by the National Information Technology Development Agency (NITDA) to support the technology sector but maintained that predictable regulations remain essential.
For startups considering a public listing, confidence in the regulatory environment could influence whether they choose to raise capital locally or look abroad.
3. Make It Easier for Startups to Grow and List
Zubair argued that technology startups may need additional support to reach the level of maturity required for public-market participation.
Unlike some established businesses, startups often begin with limited resources and must navigate considerable uncertainty before achieving sustainable growth.
He suggested that improving the general business environment would help companies reach the milestones needed to consider listing.
Zubair also recommended policies that encourage the adoption of locally developed technology solutions. Greater demand for homegrown products could help Nigerian startups expand, strengthen their businesses and eventually become better candidates for the stock market.
The underlying argument is that companies are more likely to consider listing when they have achieved sufficient scale, stability and commercial success.
NGX Turns to Tinubu as Fintech Giants Look Abroad
The concerns surrounding the Technology Board have also attracted the attention of the exchange’s leadership.
In August, NGX Group Chief Executive Officer Temi Popoola appealed to President Bola Tinubu for support in encouraging technology companies operating in Nigeria to list on the domestic market.
Popoola pointed to fintech businesses such as OPay and PalmPay, which he said were considering opportunities to list on foreign exchanges despite earning substantial profits in Nigeria.
He argued that while companies should remain free to pursue international opportunities, Nigerians should also have the chance to invest in the wealth generated by businesses operating within their economy.
His proposal centred on encouraging dual listings, which would allow companies to access foreign capital markets while giving domestic investors an opportunity to participate through the Nigerian exchange.
Such an approach could help deepen the local capital market and expand investment opportunities for Nigerians.
However, whether government intervention alone can persuade technology companies to list remains uncertain. If concerns about economic stability, policy consistency, disclosure and listing procedures remain unresolved, founders may continue to favour private investors or overseas markets.
TheCable reported that the NGX did not respond to its enquiries about why the Technology Board had remained empty or what measures the exchange had taken to attract companies.
Can the NGX Technology Board Finally Deliver?
Nigeria’s Technology Board was created to bridge the gap between the country’s technology sector and its capital market. Yet its lack of listings highlights a disconnect between the availability of a funding platform and the willingness of businesses to use it.
The opportunity remains significant. Public listings could offer startups another route to capital, create potential exit opportunities for early investors and allow more Nigerians to participate in the growth of domestic technology companies.
But achieving those outcomes will require more than encouraging founders to list.
The NGX must communicate the benefits more clearly, provide practical guidance and make the process accessible. At the same time, policymakers must address the economic uncertainty and regulatory concerns that influence companies’ long-term decisions.
Ultimately, the question is not simply whether Nigerian technology startups can list on the stock market. It is whether the local market can offer the stability, accessibility and investment opportunities they need to choose it over competing alternatives.
Until those conditions improve, the Technology Board may continue to represent an opportunity that exists in principle but remains largely untapped in practice.
