Exclusive: “One or two” tech startups may list on the NGX tech board this year with rule changes imminent
- The NGX is speaking to startups looking to access local capital as venture funding declines globally.
- The NGX has held engagements with the tech ecosystem to promote the benefits of being publicly listed.
- No startup has been listed on Nigeria's stock exchange since the rules for listing on the NGX tech board were introduced.
While the NGX is hopeful about attracting local tech startups to list on its technology board, there are several challenges that need to be addressed. Most Nigerian startups have not met the corporate governance requirements for going public, and the lack of liquidity on the NGX and the volatility of the naira are potential obstacles. Additionally, listing on the Nigerian bourse may be less attractive for startups that raise funds from foreign VCs and report revenue in US dollars.
