Nigeria has been courting Flutterwave to list on the NGX since 2023. Can it afford the fintech?

Nigeria has been lobbying Flutterwave, its most valuable startup, to list on the Nigerian Exchange (NGX) since 2023. The government believes a high-profile IPO could energise the country’s capital markets and attract other startups to follow suit. But with Flutterwave’s profitability in question, a stock exchange that favours cash-heavy businesses, and a bigger issue—whether the NGX can provide the kind of exit liquidity that global investors expect—the odds of listing solely on the NGX remain slim.

At its last public valuation of $3 billion, Flutterwave would be one of the most valuable companies on the NGX. However, unlike listed giants such as MTN Nigeria ($3.5 billion) and Dangote Cement ($5.4 billion), Flutterwave is unprofitable—a major hurdle given that the NGX’s rules prevent loss-making companies from going public.

“A potential Nigeria IPO is definitely one of our future ambitions—for now, we continue to evaluate market conditions to determine the best course of action for our business, our shareholders, and the broader ecosystem in which we operate,” Flutterwave told TechCabal in a mail.

The government’s push to list Flutterwave on the NGX dates back to September 2023, when CEO Olugbenga Agboola joined President Bola Tinubu and Minister of Communications and Digital Economy Bosun Tijani at the G20 summit in India. While the specifics of their discussions remain unclear, multiple sources told TechCabal that Nigeria has since intensified efforts to convince Flutterwave to list locally.

Last Friday, President Tinubu’s special media adviser confirmed the push following a meeting between Tinubu and Agboola at the Presidential Villa. But Flutterwave has remained noncommittal, carefully sidestepping IPO discussions in its public statements.

Nigeria has successfully nudged companies onto the stock exchange before. In 2019, MTN’s Nigerian subsidiary went public on the NGX after regulators reduced its $1.7 billion fine which paved the way for its listing.

The NGX has long struggled to attract tech startups. It even launched a dedicated board for them in 2022, but only one startup, YC-backed Tizeti, has shown interest. Meanwhile, legacy players like Interswitch have delayed their IPOs due to Nigeria’s currency instability and foreign exchange shortages.

The NGX wants Flutterwave to set a precedent and draw in younger retail investors unfamiliar with older, slow-growing stocks. But there’s a fundamental mismatch: Flutterwave, like most venture-backed startups, prioritises rapid scale over profitability, while the NGX requires companies to be profitable before listing.

Beyond the government’s ambitions, an IPO is, at its core, a liquidity event for early investors looking to exit. And this is where the NGX faces its biggest challenge.

Nigeria’s stock market has a total equity market cap of around $44 billion, with daily trading volumes below $15 million. A $3 billion Flutterwave IPO would represent 7% of the exchange’s total value, raising serious questions about whether the NGX has the depth to absorb such a listing.

Global VCs like Tiger Global and Avenir have poured millions into Flutterwave, expecting high-growth exits. But the NGX, dominated by investors who prefer dividends and stable cash flows, might struggle to provide the exit they need as both MTN and Dangote Cement trade at price-to-sales ratios below 3%. Since the start of 2025, Nigerian investors have preferred low-risk stocks as trading activity fell compared to January 2024. Without a deep enough market to sustain a high-growth fintech stock, Flutterwave’s valuation could take a hit post-listing, making it a less attractive exit for investors.

This liquidity challenge is one reason high-profile Nigerian startups have avoided the NGX. Interswitch, another fintech giant, has kept its IPO on hold, and even MTN Nigeria had to list through a public introduction rather than a traditional share sale to avoid liquidity constraints.

A dual listing—where Flutterwave debuts on both the NASDAQ and NGX—is one workaround, but that would increase compliance costs and regulatory complexity. And if the NASDAQ listing attracts most of the liquidity, Nigerian investors could be left with a less attractive secondary market.

Even if Flutterwave were willing, the broader market conditions are not encouraging. Stripe, one of the world’s largest fintechs, has shelved its IPO plans, and investor appetite for fintech stocks has cooled since the end of the zero-interest rate era.

The NGX wants Flutterwave to be its poster child for tech listings, a success story that proves Nigeria can host billion-dollar startups. But if the exchange can’t provide the liquidity that Flutterwave’s investors need, the company’s IPO will likely land elsewhere—if it happens at all.

Editor’s note: This article has been updated to include Flutterwave’s reponse.