Nigerian Market Gains Attention from Major Fintech Players

Nigeria’s financial landscape is poised for change as homegrown fintech giants like OPay and PalmPay face increasing pressure to list shares on the local stock exchange. This comes amid reports that both companies are exploring IPO opportunities in overseas markets, particularly in the United States and Hong Kong.

The push follows remarks by Temi Popoola, CEO of the Nigeria Exchange Group (NGX), who recently urged President Bola Tinubu to create incentives for major revenue-generating Nigerian companies to list locally. Popoola specifically cited OPay and PalmPay as examples of successful businesses that should also provide investment opportunities for domestic shareholders.

Key Developments:

• OPay is reportedly considering a dual listing—one in Nigeria and another potentially in the US, where it could achieve a valuation of around $4 billion.
• PalmPay, backed by Transsion and MediaTek, is exploring a Hong Kong IPO that could value it at over $1 billion.
• Both companies generate most of their revenue (around 90% for OPay) from Nigerian users but have sought international capital markets to fuel further growth.

The NGX has been working to attract technology companies through initiatives like its Technology Board launched in 2022, yet it remains without a tech IPO to date. Analysts point to factors like currency risks and limited market liquidity as deterrents for founders.

Financial Performance Strengthens Case for Listing

OPay’s recent financial results underscore the potential of Nigerian technology companies:

• Processed $358 billion in gross transaction value in 2024, double from a year earlier
• Revenue surged 161% to $536.3 million with operating income reaching $107.1 million (compared to a loss in 2023)
• Nigeria accounted for 88.1% of this revenue

With both companies demonstrating strong growth and significant local market presence, their potential listing could establish a pathway for other Nigerian technology businesses to access public capital while retaining international ambitions.

What’s your perspective on the future of tech IPOs in Nigeria?