After enabling Nigerian startups to raise capital on the exchange, the NGX is going a step further with the federal government’s approval.  

Nigerian authorities want local start-ups to be listed on the Nigerian Exchange Limited (NGX), the country's main stock exchange. This was stated by Bosun Tijani, Nigeria's Minister of Communications, Innovation and Digital Economy, at a technology event entitled "Invest in Africa's Future - Let's talk about exits" held last week in New York, on the sidelines of the United Nations General Assembly.

The aim is to stimulate the listing of startups on the NGX Technology Board index. "We want to prioritize the ability of our technology companies to export products and we are targeting Africa first and then eventually start selling to the rest of the world," Minister Tijani explained.

This decision is in line with the country’s plan to diversify its economy, therefore reducing its high dependence on oil revenues by capitalizing on its very buoyant and dynamic tech sector. According to Partech Africa, Nigerian startups captured $1.2 billion of the $6.5 billion raised in Africa in 2022. In 2021, they captured $1.8 billion of the $6 billion, against $307 million of the $1.43 billion in 2020 and $747 million of the $2 billion in 2019.

Apart from being the country whose startups attract the most funding in Africa, Nigeria also hosts four of the eight unicorns on the continent. Those unicorns are namely Chipper Cash, Flutterwave, Interswitch, and Opay. Flutterwave co-founder Olugbenga Agboola, who took part in the event in New York, explained that his company would bank on the project and capitalize on the opportunities offered to evolve and bring more value to its customers and investors.

"We will continue to do a lot of work that makes us able to attract local capital and the day tech start-ups come to the exchange, we are confident that there would be a very good audience of investors that would want to own a bit of their shares. This is what we at NGX are doing by removing all barriers for that to happen," says Temi Popoola, Chief Executive Officer of NGX.

Adoni Conrad Quenum