A technology and financial markets expert, Tunji David, has warned that Nigeria could lose a significant share of the wealth generated by its rapidly growing fintech sector if leading technology companies continue to pursue stock market listings abroad. Speaking amid reports that fintech giant OPay is considering an Initial Public Offering (IPO) in the United States, David stated that while Nigeria has become a fertile ground for building successful technology companies, the country risks missing out on broader wealth creation opportunities associated with ownership and capital market participation.
Growth of Nigerian Fintech Firms
According to David, companies such as OPay, Flutterwave, Paystack, and Moniepoint have achieved remarkable growth by serving millions of Nigerian customers and businesses. However, much of the financial gains from future public listings may accrue to foreign investors if these firms choose overseas exchanges. He noted that Nigeria possesses many ingredients required to produce globally competitive technology firms, including a large population, a youthful workforce, and increasing digital adoption.
Impact on the Nigerian Stock Exchange
David commented, “These companies widen Nigeria’s GDP on paper through transaction volumes, employment, and tech exports. But they do not widen the capital base of the Nigerian Stock Exchange. The NSE remains under N170 trillion in market cap, dominated by banks, telecoms, and consumer goods. A single fintech unicorn listing could add N5 to N10 trillion overnight and force institutional investors, pension funds, and retail traders to engage with tech equities. Without that, Nigeria’s stock market stays disconnected from the fastest-growing part of its economy.”
Foreign Listings and Local Participation
David argued that foreign listings often shift valuation, trading activity, and investment opportunities to international markets, limiting the ability of local investors to participate in the growth of companies that emerged from Nigeria’s economy. This trend could also slow efforts to deepen the Nigerian capital market, which remains largely dominated by banking, telecommunications, and consumer goods firms despite the rapid expansion of the technology sector.
Benefits of Local Listings
The expert explained that major fintech listings on the Nigerian Exchange could attract new categories of investors, encourage greater participation by retail traders and institutional funds, and create a stronger market for technology equities. While acknowledging that overseas listings offer access to deeper pools of capital, higher valuations, hard-currency fundraising opportunities, and more established regulatory frameworks, David stressed that Nigeria must strengthen its domestic capital market to retain a greater share of wealth created by its technology ecosystem.
Proposed Reforms
David called for reforms to make the local market more attractive to innovative companies, including flexible listing requirements for technology firms, enhanced market liquidity, and policies encouraging greater investment in venture-backed businesses. He also advocated dual-listing arrangements that would enable companies to raise capital both locally and internationally while maintaining a strong presence on the Nigerian Exchange. The analyst urged policymakers to explore ways of increasing pension fund participation in technology investments, arguing that stronger domestic institutional backing could provide viable alternatives to exclusive foreign listings.
Conclusion
“If Nigeria’s first trillion-dollar company lists only abroad, it becomes a proof point for founders and a payday for foreign VCs. If it lists at home, even partially, it becomes infrastructure for the next hundred startups. The GDP impact of a fintech processing N10 trillion annually is real. But GDP without capital market depth is just activity, not ownership. For ordinary Nigerians to benefit, they need a seat at the ownership table, not just the customer table. Nigeria has built the customer base. The next decade will show whether it can build the owners too,” he said.
