A Potential Game Changer for Nigeria’s Startup Ecosystem

Nigeria’s stock market is experiencing a liquidity surge, with banks recently raising ₦4.65 trillion ($3.49 billion) in just 24 months. Now, Dangote Refinery aims to add another $1.62 billion through an IPO—potentially one of the largest ever in Nigeria.

This development could address a critical constraint for Nigerian startups: limited exit options beyond private sales or funding rounds. While mergers and acquisitions remain common across Africa (with 63 deals in H1 2023), Nigeria has yet to see a venture-backed IPO.

The Dangote offering could provide something founders and investors have long sought—evidence that the Nigerian market can support public exits for technology companies at scale. The country already possesses key infrastructure like the NGX Growth Board, Technology Board, and provisions in the Nigerian Startup Act designed to facilitate listings.

However, adoption has been slow due to factors such as limited understanding of local listing processes and investor preference for dollar-denominated returns given naira depreciation risk. If Dangote’s IPO attracts significant retail and institutional investment, it could demonstrate that a credible public market exists for Nigerian technology companies—inspiring more founders to explore this exit route.