Why Nigerian Startups Are Avoiding Local IPOs
- Nigerian startups have not listed on the NGX's technology board since its launch in 2022.
- The naira has lost approximately 65% of its value since President Bola Tinubu loosened FX controls in 2023.
- 76.5% of Nigeria-funded startups are holding dollar-denominated capital.
The reluctance of Nigerian startups to list locally underscores a significant structural issue in the market, primarily driven by currency instability. This situation not only hampers the growth potential of the local stock exchange but also limits opportunities for domestic investors. A strategic pivot towards international listings could provide a viable solution to attract investment while mitigating foreign exchange risks.
