Nigeria’s Historic Rally Leaves Tech Sector Unrepresented

While Nigeria’s stock market is experiencing a record-breaking year, its most promising technology companies remain conspicuously absent from the local bourse. The benchmark index has surged 67% in dollar terms this year, making it the world’s best-performing equity market, with financial stocks leading the charge.

A Tale of Two Markets

This remarkable rally stands in contrast to the behavior of Nigeria’s tech unicorns—companies like Flutterwave and Moniepoint that have raised billions in venture capital. These firms, which contribute nearly 20% to GDP, are increasingly choosing foreign exchanges for their IPOs.

Why Tech Companies Are Looking Elsewhere:

• Currency Mismatch: Most startups raise dollars but earn revenue in naira, creating economic tension
• Liquidity Concerns: Nigeria’s market is smaller and less liquid than global alternatives like NASDAQ
• Structural Barriers: High listing thresholds and compliance costs deter some companies
• Investor Preferences: Foreign investors often demand dollar-denominated returns
• Legal Frameworks: Common holding structures with intellectual property outside Nigeria limit incentives to list locally

“There isn’t a lot of high-frequency trading activity,” noted Richmond Bassey, CEO of Bamboo. “Our market is still young and has many challenges to solve.”

Despite the disconnect, optimism remains for Nigeria’s capital markets. The country is on S&P Dow Jones’ 2027 watchlist for a possible upgrade to ‘Frontier’ status, and Dangote Refinery’s upcoming listing could further deepen liquidity.