TLP Advisory Flags Barriers to Nigerian Startup IPOs

TLP Advisory, a cross-border venture law practice, has released a new report titled “Rethinking Funding & Exits: Nigeria’s Missing IPOs and the NGX.” The report highlights systemic barriers that prevent high-growth Nigerian startups from pursuing local IPOs, warning that the lack of domestic exit routes threatens long-term sustainability and local wealth creation.

Despite the launch of the NGX Technology Board in 2022, no tech company has been listed so far. TLP Advisory’s founder survey shows a concerning knowledge gap: 53% of Nigerian founders say they do not fully understand the NGX listing process. This lack of clarity mirrors exit preferences, with 46% favouring acquisitions over IPOs. Only 21% would consider going public, and most of these founders prefer foreign exchanges.

Currency mismatch is another major issue. About 77% of funded Nigerian startups raise capital in US dollars but earn revenue in naira, encouraging offshore exits that offer currency stability and align more easily with investor expectations. Founders also cite compliance costs, undervaluation (26%), and low market liquidity (16%) as obstacles to listing locally. Even so, 42% say they would consider an NGX listing if meaningful reforms are implemented.

Speaking at the report launch during the Africa Prosperity Summit (APS), hosted by Ventures Platform, Odunoluwa Longe, Co-founder of TLP Advisory, noted that Nigeria’s startups are globally competitive but lack a viable domestic exit path. She stressed that the challenge is not founder ambition but information gaps, perceived illiquidity, and a currency mismatch that make offshore exits more attractive.

The report is the first Nigeria-focused assessment of startup readiness for local listings. It includes desk research, a nationwide founder survey, and interviews with key ecosystem leaders such as Jude Chiemeka (CEO, NGX), Adekunle Awojobi (CEO, Honnete Solutions; former CEO, FBN Trustees), Adewale Yusuf (Founder, AltSchool Africa), Idris Bello (Founding Partner, LoftyInc Capital), and Dolapo Morgan (Investment Principal, Ventures Platform). It also benchmarks Nigeria against South Africa, Kenya, Egypt, Ghana, India, and Brazil, as well as mature markets like AIM (UK) and NASDAQ (US). India’s domestic capital mobilisation, driven by pension reform, is highlighted as a potential blueprint for Nigeria.

Key Recommendations to Unlock Startup IPOs in Nigeria

1. Strengthen Education and Awareness
The NGX should invest in roadshows, workshops, and practical playbooks to help founders and investors better understand listing requirements.

2. Simplify Regulatory and Listing Frameworks
Streamlined documentation and transparency-focused reforms can make the NGX more accessible to fast-growing startups.

3. Improve Market Liquidity and Investor Participation
Market-making mechanisms, broader institutional participation, and retail investor incentives can strengthen liquidity and market confidence.

4. Address Currency Mismatch
Deepening local capital pools and exploring dual or cross-listing partnerships with exchanges like NASDAQ, AIM, and the JSE can reduce the appeal of offshore exits.

During the launch, Adewale Yusuf, Founder & CEO of AltSchool Africa, also underscored the importance of founder-focused education, saying that many entrepreneurs do not fully understand what it takes to list on the NGX, and clearer structures will boost confidence in local listings.

Launched in 2014, TLP Advisory has advised over 250 clients in Nigeria’s venture and technology space on institutional investments, M&A, intellectual property, and cross-border expansion. The firm co-drafted the 2023 Nigerian Startup Act and, through its legal-tech platform DIYLaw, has supported more than 200,000 businesses with compliance and documentation.