Nigeria's Fintech Sector Risks Wealth Loss to Foreign Markets

Mr. Tunji David, a market expert, expressed concerns regarding the migration of fintech value from Nigeria to overseas stock markets.

He highlighted that the rapid growth of Nigeria's fintech sector, exemplified by companies like Opay, could lead to a significant loss of wealth if these firms pursue initial public offerings (IPOs) abroad. David noted that Nigeria has the potential to be a fertile ground for technology companies due to its large youth workforce and increasing digital adoption.

However, he pointed out that the Nigerian Stock Exchange (NSE) remains stagnant with a market cap of N170 trillion, dominated by banks and telecoms, and lacks the depth to support the burgeoning fintech sector. He urged for reforms to attract fintech listings on the NSE, which would encourage greater participation from retail traders and institutional investors.

David called for a dual listing arrangement to enable companies to raise capital locally while maintaining a presence in international markets.