Nigeria has emerged as Africa’s leading technology powerhouse, producing some of the continent’s most valuable startups and attracting billions of dollars in foreign investment. Companies such as Flutterwave, OPay, Interswitch and Moniepoint have transformed digital payments and financial services across the continent. Yet despite being built on Nigerian talent, consumers and innovation, many of these firms are choosing to raise capital, list shares and create long-term wealth outside the country, sparking concerns about who truly benefits from Nigeria’s tech revolution.
Over the past decade, the country’s youthful population, growing internet penetration and expanding digital economy have fueled the rise of thousands of startups across sectors including fintech, e-commerce, logistics, healthcare and education. According to industry data, the Information and Communications Technology sector remains one of Nigeria’s strongest economic contributors, while startup funding exceeded $1 billion in 2024. However, as these companies mature and seek larger pools of capital, many are turning to international financial markets where liquidity is stronger, valuations are higher and investors are more familiar with high-growth technology businesses.
The trend became most visible when Jumia made history by listing on the New York Stock Exchange in 2019, becoming Africa’s first publicly traded tech startup on the exchange. Today, reports suggest OPay is exploring a potential U.S. listing that could value the company at billions of dollars, while Flutterwave has repeatedly expressed ambitions for an international IPO. For many founders and investors, overseas listings offer a faster path to raising capital and delivering returns, but critics argue they also shift significant wealth creation away from Nigeria’s financial system.
A major factor driving this migration is the corporate structure adopted by many startups, often described by industry insiders as the “Delaware–London–Lagos” model. Under this arrangement, operations remain in Nigeria while holding companies and intellectual property are registered abroad to attract international investors and simplify future exits. Although the strategy provides stronger legal protections and easier fundraising opportunities, it limits participation by Nigerian retail investors, pension funds and local institutions. Experts warn that this creates a cycle in which Nigeria supplies the market, workforce and innovation while foreign markets capture much of the financial upside.
To reverse the trend, stakeholders are calling for deeper reforms within Nigeria’s capital market. The Nigerian Exchange’s Technology Board, launched to attract startup listings, has yet to secure a major venture-backed technology company nearly four years after its introduction. Analysts believe that improving market liquidity, stabilising the naira, increasing pension fund participation and promoting dual listings could make local exchanges more attractive. Many argue that a successful tech IPO on the Nigerian market would not only boost investor confidence but also ensure that ordinary Nigerians share in the wealth generated by the country’s thriving digital economy. Until then, Nigeria may continue producing billion-dollar startups while the largest rewards flow to Wall Street and other foreign financial centres.
source: Business day