Lagos, Nigeria — November 17, 2025. A new report by TLP Advisory reveals that limited awareness of the Nigerian Exchange (NGX) listing process remains the biggest barrier preventing Nigerian startups from pursuing local IPOs—despite the creation of the NGX Technology Board in 2022.
According to the report, 53% of founders say they lack adequate knowledge of how to list on the NGX, while 46% prefer acquisitions over IPOs, and only 21% would currently consider going public. The study warns that this trend undermines Nigeria’s chances of building sustainable, locally anchored tech giants.
The report, titled “Rethinking Funding & Exits: Nigeria’s Missing IPOs and the NGX,” highlights deeper structural issues driving startups away from local exits. Most venture-backed companies raise capital in dollars (77%) but earn revenue in naira, creating currency pressure that makes foreign listings and offshore acquisitions more attractive.
Additional concerns include compliance costs (26%) and low domestic market liquidity (16%). Yet, optimism remains: 42% of founders say they would consider listing on the NGX if reforms improved transparency, liquidity, and listing requirements.
Speaking at the launch during the Africa Prosperity Summit hosted by Ventures Platform, Odunoluwa Longe, Co-founder of TLP Advisory, noted that Nigeria risks losing long-term value to foreign markets if viable domestic exit routes do not emerge. She stressed that the issue is not lack of ambition but “an information gap, liquidity concerns, and a currency mismatch that collectively push high-growth companies offshore.”
The report benchmarks Nigeria against markets such as South Africa, Kenya, India, and Brazil, and draws insights from industry leaders including Jude Chiemeka (NGX), Adewale Yusuf (AltSchool Africa), and Idris Bello (LoftyInc Capital). It recommends four key steps:
-
Improve education and awareness through roadshows, workshops, and practical listing guides.
-
Simplify listing requirements while strengthening investor protections.
-
Boost liquidity and local investor participation through market-making and institutional incentives.
-
Address currency mismatches by deepening local capital pools and enabling dual or cross-listings with global exchanges.
Industry leaders echoed the call for improved engagement. Adewale Yusuf, CEO of AltSchool Africa, urged the NGX to “actively engage founders and clarify the listing process to build confidence in the local market.”
Founded in 2014, TLP Advisory has supported over 250 clients across Nigeria’s tech ecosystem and co-drafted the 2023 Nigerian Startup Act. Through its legal-tech platform, DIYLaw, it has assisted more than 200,000 businesses.
The full report is available for free download.
