The Nigerian Exchange Group (NGX) is pushing for major Nigerian fintech companies to list locally, arguing that the country’s fastest-growing financial-technology businesses should also create direct investment opportunities for Nigerian investors. NGX Group CEO Temi Popoola made the proposal during an engagement with President Bola Tinubu.
The proposal comes as major private fintechs, including OPay and PalmPay, continue to expand while some explore access to overseas capital markets. OPay is reportedly targeting a U.S. IPO that could value the company at about $4 billion, while Standard Bank is in discussions to acquire a stake ahead of the proposed listing.
For the NGX, attracting these companies could materially broaden the exchange’s technology and financial-services exposure, increase market capitalisation and give Nigerian pension funds, institutions and retail investors access to businesses they already use.
However, a local listing would require companies to meet applicable disclosure, governance and regulatory requirements. NGX’s proposal also raises a broader question over whether fast-growing Nigerian businesses should raise capital locally, overseas, or through dual listings.
Investors should watch whether the Federal Government or regulators introduce incentives or requirements for major fintechs to pursue domestic listings, and whether companies such as OPay ultimately choose the NGX alongside or instead of an overseas exchange.
