Nigeria Risks Losing Fintech Wealth as Tech Giants Eye Foreign Stock Listings, Expert Warns

Nigeria’s booming fintech sector has become one of the country’s biggest success stories, but a financial markets expert has warned that the nation could lose a substantial share of the wealth created by these companies if they continue to pursue stock market listings abroad. The concern follows reports that leading fintech company OPay is considering an Initial Public Offering (IPO) in the United States, a move that could shift investment opportunities away from Nigerian investors.

Speaking on the development, technology and financial markets analyst Tunji David noted that companies such as OPay, Flutterwave, Paystack, and Moniepoint have achieved remarkable success by serving millions of Nigerians and driving digital financial inclusion. However, he stressed that while these firms contribute significantly to economic activity through job creation, transaction volumes, and technology exports, much of the financial reward from future public listings may end up benefiting foreign investors rather than Nigerians.

David explained that Nigeria already possesses the key ingredients needed to build world-class technology companies, including a large and youthful population, increasing internet penetration, and a rapidly growing digital economy. Despite these advantages, he argued that the Nigerian capital market remains largely disconnected from the country’s fastest-growing sector. According to him, the Nigerian Exchange is still dominated by banks, telecommunications firms, and consumer goods companies, leaving little room for investors seeking exposure to high-growth technology stocks.

The expert further warned that overseas listings could transfer company valuations, trading activity, and long-term wealth creation to foreign markets. He believes that listing fintech unicorns on the Nigerian Exchange would attract retail investors, pension funds, and institutional investors while significantly boosting market capitalization. Such developments, he said, would help deepen the capital market and create greater opportunities for ordinary Nigerians to participate in the success of homegrown technology firms.

While acknowledging that foreign exchanges offer advantages such as larger pools of capital, stronger liquidity, and higher valuations, David urged policymakers to implement reforms that make local listings more attractive. He advocated for flexible listing requirements, improved market liquidity, increased pension fund participation in technology investments, and dual-listing arrangements that allow companies to raise funds both locally and internationally. According to him, the future of Nigeria’s fintech industry should not only be measured by economic activity but also by ownership opportunities that allow Nigerians to share in the wealth created by the country’s thriving technology ecosystem.

source: This day