FG, NGX Create Tech-Driven Path For Startup Listings

The Federal Government has announced its partnership with the Nigerian Exchange Limited (NGX) to catalyze startup listings via the newly established NGX Technology Board.

This collaborative initiative was unveiled during a tech-focused event titled “Invest in Africa’s Future – Let’s Talk About Exits,” held in New York on Thursday, September 21, 2023.

Addressing the audience at the event, Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, emphasized the importance of diversifying Nigeria’s economy through technology and innovation.

He stated, “We cannot do all of this as a country if we do not prioritize innovation and encourage entrepreneurs to build. Nigeria is now open to investments. We want to prioritize the ability of our technology companies to export products and we are targeting Africa first and then eventually start selling to the rest of the world.”

Minister Tijani outlined the Ministry’s goals, including creating a conducive regulatory environment for fintechs, facilitating access to funding, improving digital infrastructure, promoting tech product exports, and collaborating with NGX on tailored listing options for startups through its Technology Board.

In response to this partnership, Temi Popoola, CEO of NGX, expressed the Exchange’s commitment to supporting the Minister’s agenda and President Bola Tinubu’s mandate.

Popoola emphasized that technology plays a pivotal role in the capital market and that NGX is dedicated to fostering innovation to attract a wider range of investors and mature tech companies to list on its platform.

Popoola acknowledged the challenges surrounding listings, including a growing demand for private capital over public capital. He revealed that NGX is in discussions with the Securities and Exchange Commission (SEC) to facilitate private markets, allowing the exchange to engage with non-listed companies, particularly startups.

“We will continue to do a lot of work that makes us able to attract local capital, and the day tech startups come to the exchange, we are confident that there would be a very good audience of investors that would want to own a bit of their shares,” said Popoola. “This is what we at NGX are doing by removing all barriers for that to happen.”

The event also featured insights from Olugbenga Agboola, CEO of Flutterwave, who highlighted his company’s commitment to the Nigerian project and its intention to capitalize on market opportunities to scale and deliver value to customers and investors.

Bolaji Balogun, CEO of Chapel Hill Denham, expressed optimism that the Nigerian investment community would actively participate in the tech sector’s capital formation, ensuring that intellectual property benefits remain within the nation’s borders rather than being controlled by foreign markets.

Emmanuel Ochayi