The Federal Government of Nigeria, under the guidance of the Ministry of Communications, Innovation, and Digital Economy, has unveiled its plans to collaborate with the Nigerian Exchange Limited (NGX) to encourage startup listings through the newly established NGX Technology Board.
This significant announcement came from Minister Bosun Tijani during a technology event held in New York, themed “Invest in Africa’s Future – Let’s talk about exits.”
Read also: Nigeria Securities And Exchange Commission Approves Listing On Nigeria Exchange Technology Board
Diversifying Nigeria’s Economic Landscape
Minister Tijani underscored the importance of diversifying Nigeria’s economy, which has historically been heavily reliant on the oil sector. He emphasised the need to shift from this dependency on a single industry and explore alternative avenues for economic growth. Technology and innovation, he noted, hold the key to achieving this diversification, providing a unique opportunity to boost tech entrepreneurship within the country.
Minister Tijani outlined a series of ambitious goals and initiatives aimed at advancing Nigeria’s technology and innovation ecosystem. These include:
Creating a Regulatory Environment for Fintech: The ministry intends to establish a conducive regulatory framework to support the growth and development of the fintech sector in Nigeria.
Access to Funding: Recognizing the critical role of funding in fostering tech entrepreneurship, the government is committed to facilitating access to funding, particularly from angel investors.
Enhancing Digital Infrastructure: Improving digital infrastructure across the country is a priority. A robust digital ecosystem is essential for the growth of tech startups.
Facilitating Tech Exports: The government aims to facilitate the export of Nigerian tech products and services, targeting the African market as the initial focus.
Collaboration with NGX: The Ministry of Communications, Innovation, and Digital Economy will collaborate closely with NGX to develop tailored listing options for startups through the newly created NGX Technology Board.
Nigeria’s Openness to Investments
Minister Tijani emphasised Nigeria’s newfound openness to investments, highlighting the nation’s desire to prioritise its technology companies’ ability to export products. The primary focus is on the African market, with aspirations to expand globally in the future.
Speaking at the same event, Temi Popoola, the Chief Executive Officer of NGX, expressed the exchange’s dedication to supporting the Ministry of Communications and Innovation. Popoola emphasised the pivotal role of technology in enabling the capital market, showcasing NGX’s commitment to fostering innovation to attract more investors and tech companies.
Popoola also addressed the challenges surrounding listings, noting that the demand for private capital currently outweighs public capital. He revealed that NGX is in discussions with the Securities and Exchange Commission (SEC) to explore opportunities for private markets, enabling the exchange to engage with non-listed entities, including startups.
Flutterwave’s Commitment to Nigeria
Also present at the event was Flutterwave CEO Olugbenga Agboola, who reaffirmed his company’s commitment to the Nigerian project. He highlighted the significant investments made by Flutterwave in Nigeria since its inception. Agboola expressed Flutterwave’s intent to leverage opportunities arising from the markets to scale and continue delivering value to its customers and investors.
The Federal Government of Nigeria’s plan to list startups on the NGX through the NGX Technology Board holds the promise of numerous advantages for these companies. Access to capital, a broader investor base, benchmarking of valuations, and increased visibility are among the potential benefits. As this partnership unfolds, it is expected to create a conducive environment for tech startups to thrive and contribute to Nigeria’s economic growth and diversification efforts.
The Nigerian Exchange
The Nigerian Exchange (NGX), a fully owned subsidiary of the Nigerian Exchange Group (NGX Group), is Africa’s largest listing and trading venue, dating back to 1960. It is an open, professional, and lively conversation that connects Nigeria, Africa, and the rest of the globe.
NGX is a multi-asset exchange that houses the finest of African firms listed on our Premium, Main, and Growth Boards, as well as varied fixed income securities, Exchange Traded Products (ETPs), mutual funds, and other investment funds. We offer local and international investors with access to these assets via our thriving secondary market. In addition, in our goal to be Africa’s chosen exchange centre, NGX offers licencing services, market data solutions, auxiliary technology services, and more.