TLP Advisory Warns Nigeria Risks Losing Tech Wealth As Fintechs Shun NGX
Funmi Ogundare
Cross border law firm, TLP Advisory, has warned that Nigeria risks losing a significant share of the economic value generated by its fast-growing technology sector as its leading homegrown fintech companies remain absent from the Nigerian Exchange Limited (NGX).
The firm said despite the emergence of multibillion-dollar Nigerian technology companies, including Flutterwave, Moniepoint and Paystack, not a single homegrown fintech is currently listed on the NGX, limiting the opportunity for local investors to participate in their growth.
The concern was raised at the launch of TLP Advisory’s third annual report, titled, ‘Home and Away: Tracking African Tech’s Global Footprint’, weekend, in Lagos.
The report, which surveyed 100 of Africa’s top startups, found that 67 per cent were incorporated in the United States, 32 per cent in the United Kingdom and 22 per cent in the United Arab Emirates, underscoring the growing offshore structure of African technology businesses.
Speaking at the launch, TLP Advisory founding partner, Funkola Odeleye, explained that Nigerian startups were often compelled to move their intellectual property and corporate structures offshore because of their dependence on foreign venture capital.
According to her, investors typically prefer to invest in companies incorporated in jurisdictions where they can more easily protect and realise the value of their investments.
“Investors will not put money in a Delaware entity and let your IP remain in Nigeria,” Odeleye said. “Where the money comes from is where the assets go.
“Plus, if you raise in dollars, you cannot rely on the naira to return value to your investors. The only real solution is building deep local capital pools so startups can raise at home.”
She warned that unless Nigeria develops stronger domestic sources of venture funding, the country could continue to produce successful technology companies without retaining a proportionate share of the wealth and value they create.
While major telecommunications companies such as MTN and Airtel have established a strong presence on the local bourse, Nigeria’s most successful technology startups have largely remained outside the NGX.
In her remarks, the co-founder, Odunoluwa Longe, said the challenge was not necessarily a lack of opportunities for technology companies to list locally, noting that the NGX had created a specialised technology board to attract firms in the sector.
However, she identified poor awareness and the perceived complexity of listing requirements as major barriers preventing startups from exploring the local market.
Longe called on regulators and market operators to intensify efforts to bridge the information gap and make the listing process more accessible to high-growth technology companies.
She also urged policymakers to consider models such as Egypt’s recent MNT-Halan listing, which opened up opportunities for ordinary citizens to participate in the growth of a technology company.
“It’s not an either-or choice. Startups can serve global markets and still list locally,” Longe said. “Policy and awareness must catch up so our best companies don’t exit entirely overseas.”