Breaking: NGX Tech Board Set to Host Exciting Tech Startup Listings Amid Imminent Rule Changes!

The Nigerian Exchange Group (NGX) is optimistic that upcoming regulatory changes will encourage domestic tech startups to join its specialized technology board in the coming year. As Africa’s second-largest exchange, NGX is actively engaging with startups seeking local capital amid a global decline in venture funding.

“There are a couple of startups that are considering listing,” Jude Chiemeka, the interim CEO of NGX, shared insights with TechCabal during a telephonic conversation. “We are hopeful to see one or two listings this year.” 

The NGX, through insightful dialogues, has been championing the advantages of public listing within the tech community. During a notable gathering of founders and venture capitalists in New York last September, Temi Popoola, the future GMD/CEO of NGX, made a compelling pitch to Olugbenga Agboola, the visionary CEO of Flutterwave, Africa’s leading payments startup. Flutterwave is actively exploring the possibility of an Initial Public Offering (IPO) on the prestigious New York Stock Exchange.

The NGX has been striving to welcome Nigerian startups into its fold, and in December 2022, the Securities and Exchange Commission (SEC) in Nigeria gave the green light to listing rules on the NGX tech board. These rules, categorized into Start-Up Tech and Big Tech segments, demand aspiring startups to fulfill corporate governance criteria. This includes formal registration as a public company and the necessity of shareholders and core investors with a proven track record. However, despite over a year passing since the introduction of these rules, the Nigerian stock exchange has yet to see a startup grace its listings.

According to Chiemeka, many Nigerian startups are yet to meet the rigorous corporate governance standards essential for going public. And the SEC aims to safeguard investors, emphasizing the need for heightened discipline beyond venture capital funding, as accessing public capital demands a higher level of accountability.