TLP Advisory, a cross-border venture law practice, has released a new report identifying systemic barriers preventing Nigeria’s high-growth startups from listing on the Nigerian Exchange (NGX) Limited.
According to a statement from TLP Advisory, the report, titled ‘Rethinking Funding & Exits: Nigeria’s Missing IPOs and the NGX,’ warns that the barriers pose long-term risks to sustainability and local wealth creation in Africa’s largest economy.
The findings showed that no tech company has been listed since the launch of the NGX Technology Board in 2022, with founders citing limited awareness as a major setback.
“Surveyed founders point to a clear knowledge gap, with a majority (53%) stating they are not sufficiently aware of the NGX listing process,” the report said.
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“This information gap is compounded by exit preferences, with nearly half (46%) favouring acquisitions, compared with about one in five (21%) who would consider an IPO – many of whom aspire to list on foreign exchanges.”
TLP Advisory said structural frictions deepen the challenge, adding that about 77 percent of funded startups raise capital in dollars but earn revenue in naira, creating strong incentives for offshore exits.
The report added that compliance costs and concerns over undervaluation were cited by 26 percent of respondents, while 16 percent identified limited market liquidity as a deterrent.
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In addition, the report noted an appetite for a local solution, with around 42 percent of founders open to an NGX listing if the right reforms are in place, and more than half expressing positive sentiment overall.
Speaking at the report launch during the Africa Prosperity Summit, hosted by Ventures Platform, Odunoluwa Longe, co-founder of TLP Advisory, said Nigerian startups have demonstrated global competitiveness but lack viable domestic exit channels.
“Nigeria’s startups have proven they can build globally competitive businesses, but too much value still flows offshore because viable local exit routes are limited,” Longe said.
“Our report shows the issue isn’t founder ambition or rejection of the NGX; it’s a disconnect propelled by information gaps, perceived illiquidity, and a currency mismatch that makes dollar-denominated exits more attractive for venture-backed companies.
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“With clarity, practical education and confidence-building – and by aligning regulators, founders, investors, and policymakers – we can turn the NGX into a genuine platform for growth-stage innovation and long-term wealth creation in Nigeria.”
RECOMMENDATIONS TO CLOSE THE GAP
The report proposes a set of reforms to close the gap and enable more Nigerian startups to consider public listings.
The reforms include enhancing education and awareness, reforming regulatory and listing frameworks, market liquidity and investor participation, and addressing currency mismatch.
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Adewale Yusuf, founder and chief executive officer (CEO) of AltSchool Africa, said the NGX needs to actively engage founders and use them as channels to show what is possible on the exchange.
“Local investors also need to step in. Many of us don’t fully understand the process or requirements. By putting clear structures and educational support in place, founders can see exactly what it takes to list, and confidence in the local market will grow,” Yusuf said.
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TLP Advisory said the report is Nigeria’s first focused assessment of startup readiness for local listings, and sets out practical frameworks to unlock the NGX.
The firm said the study draws on desk research, a founder survey and interviews with stakeholders, including Jude Chiemeka, CEO of NGX; Adekunle Awojobi, CEO of Honnete Solutions and former CEO of FBN Trustees; Adewale Yusuf, founder of AltSchool Africa; Idris Bello, founding partner of LoftyInc Capital Management; and Dolapo Morgan, investment principal of Ventures Platform.
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