Nigerian Exchange urges mandatory fintech listings

The Nigerian Exchange (NGX) has called on President Bola Tinubu to mandate major fintech companies to list on the Nigerian stock market, a move aimed at deepening the country's capital market and creating investment opportunities.

Temi Popoola, NGX Group Managing Director and CEO, made this appeal during an engagement with the President. Fintechs, which leverage digital technology for financial services like payments, savings, and lending, have emerged as critical players in Nigeria's economy. Leading examples include Flutterwave, OPay, PalmPay, Moniepoint, Paystack, Paga, Kuda, PiggyVest, and Interswitch. Their growth has been fueled by gaps in the traditional financial system, the proliferation of mobile phones and internet access, and supportive regulatory innovations from the Central Bank of Nigeria.

These companies have attracted significant venture capital, created jobs, expanded financial inclusion, and challenged conventional banks. However, ownership remains largely private, with founders, employees, and investors holding stakes, preventing millions of Nigerian customers from directly owning shares in businesses they patronize. With some leading fintechs reportedly considering overseas listings, the NGX's intervention is seen as timely.

A local listing would offer substantial economic benefits. It would mobilize domestic savings into productive enterprises, deepen the equities market, increase market capitalization, and diversify the sectors represented on the Exchange. Crucially, it would democratize wealth creation, allowing pension funds, institutions, and individuals to invest in companies they use daily.

Furthermore, public listing would impose greater standards of disclosure, audited reporting, corporate governance, and accountability. This transparency would bolster investor confidence and make these companies more attractive to international capital. For the fintechs themselves, an NGX listing would provide access to long-term capital, strengthen their brands, offer a liquid avenue for existing investors, and establish a credible domestic shareholder base.