NGX urges Tinubu to require major fintechs to list in Nigeria
The Chief Executive Officer of Nigerian Exchange Limited (NGX), Temi Popoola, has called on President Bola Ahmed Tinubu to support policies that would require major companies operating in Nigeria, particularly high-growth fintech firms, to list their shares on the domestic stock exchange.
Popoola made the call during a meeting with the President, where he raised concerns over companies generating substantial revenues and profits from Nigeria choosing to list their shares on foreign exchanges.
According to him, such overseas listings limit opportunities for Nigerian investors to participate in the growth and wealth generated by companies operating in the country.
He said Nigeria should continue to maintain a free and open capital market but ensure that local investors have access to wealth created within the domestic economy.
Fintechs considering foreign listings
Popoola specifically pointed to fintech companies such as OPay and others that have built significant businesses in Nigeria but are reportedly considering listing abroad.
He urged the Federal Government to develop policies encouraging such companies to pursue dual listings, allowing them to raise capital internationally while also giving Nigerian investors the opportunity to own shares in the companies.
“Mr President, I bring to your attention something that we’re seeing happen recently that we could do with some support, which is an idea of companies that do business in Nigeria. They earn a lot of their profits in Nigeria, but they take that wealth abroad to list on other exchanges,” Popoola said.
He added that while Nigeria should encourage free and open markets, local investors should also be allowed to benefit from the wealth generated by companies operating in the country.
“While we encourage free and open markets, let’s make sure our locals can also benefit. As they list abroad, they should also list in our country,” he said.
The comments come as several major Nigerian fintech companies explore potential public listings outside the country.
OPay, backed by SoftBank Group Corp., has reportedly engaged Citigroup, Deutsche Bank and JPMorgan Chase over a potential initial public offering that could value the company at up to $4 billion. The fintech is reportedly considering a US listing.
Flutterwave has also been repeatedly linked with a potential Nasdaq listing, although the company has not recently confirmed plans for an IPO.
Other Nigerian and African companies have already opted for foreign listings. Jumia, the Pan-African e-commerce company, is listed on the New York Stock Exchange, while IHS, a major mobile telecommunications infrastructure operator, delisted from the Nigerian Exchange before launching an IPO on the New York Stock Exchange.
NGX seeks deeper capital market participation
Popoola’s proposal comes as the NGX seeks to deepen capital market participation and support the Federal Government’s ambition of building a $1 trillion economy.
He previously projected that the market capitalisation of companies listed on the Nigerian Exchange could reach N230 trillion by the end of 2026, up from about N160 trillion.
According to him, the value of the Nigerian equities market has risen significantly from approximately N30 trillion when President Tinubu assumed office in May 2023, reflecting increased investor confidence and renewed activity in the capital market.
Popoola said attracting more listings, particularly from fast-growing technology companies and strategic national assets, would deepen the domestic capital market, expand investment opportunities and support long-term economic growth.
The proposed dual-listing approach could therefore provide Nigerian investors with greater access to locally generated corporate wealth while allowing companies to benefit from the deeper pools of capital available on international exchanges.
