The reported plan by fintech giants OPay and PalmPay to pursue a foreign stock market listing has triggered renewed calls for policies that would ensure major companies generating substantial revenues in Nigeria also give local investors an opportunity to own stakes in their businesses.
The Chief Executive Officer of Nigerian Exchange Limited (NGX), Temi Popoola, made the call during a meeting with President Bola Ahmed Tinubu, urging the Federal Government to develop policies that would encourage major companies, particularly high-growth fintech firms, to list on the domestic exchange.
Popoola specifically cited OPay and PalmPay as examples of fintech companies that have built substantial businesses in Nigeria but are reportedly considering listing their shares outside the country.
According to him, while Nigeria must maintain an open and competitive capital market, local investors should not be excluded from wealth created by companies whose businesses are largely built around the Nigerian economy.
He therefore advocated dual listings, which would allow companies to access international capital while simultaneously providing Nigerian investors with the opportunity to acquire shares through the NGX.
“Some of these fintechs, like OPay and PalmPay, are considering listings abroad,” Popoola said, stressing that such companies should also consider listing domestically.
The debate has gained prominence amid reports that OPay, backed by SoftBank Group Corp., is preparing for a potential initial public offering that could value the fintech at as much as $4 billion.
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The company has reportedly engaged major global investment banks, including Citigroup, Deutsche Bank and JPMorgan Chase, in connection with a possible IPO, with a United States listing said to be under consideration.
PalmPay, another major player in Nigeria’s rapidly expanding digital payments market, is also reportedly exploring a potential Hong Kong listing to raise funds for expansion across emerging markets.
Flutterwave, meanwhile, has previously been linked to a possible Nasdaq listing, although the company has not recently confirmed plans for an IPO.
From a capital-market perspective, analysts say a dual-listing framework could provide a compromise by allowing companies such as OPay to access international investors without completely shutting out Nigerian investors.
Popoola’s intervention comes as the NGX seeks to attract more companies and deepen participation in Nigeria’s capital market as the Federal Government pursues its ambition of building a $1 trillion economy.
The NGX chief had earlier projected that the total market capitalisation of companies listed on the exchange could rise to about N230 trillion by the end of 2026, from approximately N160 trillion currently.
He noted that the market had expanded substantially from about N30 trillion when Tinubu assumed office in May 2023, attributing the growth to increased investor confidence and renewed activity.
Analysts believe attracting fast-growing fintech companies and other strategic businesses to the domestic exchange could significantly broaden the market, increase investment options and strengthen Nigeria’s ability to mobilise domestic capital.
They, however, caution that any policy compelling or encouraging local listings must balance national economic interests with the need to maintain Nigeria’s reputation as a free and competitive investment destination.