Nigeria is looking to give local investors a bigger slice of the country’s booming fintech industry as major players such as OPay and PalmPay consider tapping international capital markets. The push comes amid growing concerns that Nigerians could miss out on the wealth created by some of the country’s fastest-growing technology companies if they remain largely backed by foreign investors and list only overseas.
Nigerian Exchange Group Chief Executive Officer, Temi Popoola, has called on the government to introduce policies that would encourage companies with significant operations in Nigeria to list on the local exchange, even when they also pursue foreign listings. Speaking after an engagement with President Bola Tinubu in Abuja, Popoola stressed that opening the door to international investors should not come at the expense of domestic participation in the ownership of successful Nigerian businesses.
OPay is at the centre of the conversation. Since launching in Nigeria in 2018, the fintech company has grown from a mobile payment platform into one of the country’s major digital financial-services providers, serving consumers, merchants and agents. Bloomberg reported in May that OPay was working with Citigroup, Deutsche Bank and JPMorgan Chase on preparations for a possible United States initial public offering, with the company reportedly considering a valuation of about $4bn, although the plans were not yet final.
PalmPay has also built a strong presence in Nigeria since entering the market in 2019, attracting investment from companies including Transsion Holdings, the Chinese group behind Tecno, Infinix and itel, as well as MediaTek and other investors. As PalmPay expands across Africa and Asia, and with Hong Kong serving as a base for its international operations, attention is increasingly turning to where future capital-raising opportunities could take the company.
For Nigeria, the bigger issue is what happens to local investors as the fintech sector continues to grow. A listing on the Nigerian Exchange could give pension funds, asset managers and individual investors an opportunity to own shares in some of the companies transforming the country’s financial system. Rather than shutting fintech firms out of deeper foreign markets, the proposal seeks a balance—allowing Nigerian companies to attract global capital while ensuring that the people and investors in the market where these businesses grew can also share in their success.
source: punch
