Technology and financial markets expert, Tunji David, has warned that Nigeria could lose a significant share of the wealth generated by its rapidly growing fintech sector if leading technology companies continue to pursue stock market listings abroad.
David, who spoke amid reports that fintech giant, OPay, was considering an Initial Public Offering (IPO) in the United States, said while Nigeria had become a fertile ground for building successful technology companies, the country risked missing out on the broader wealth creation opportunities associated with ownership and capital market participation.
According to him, companies such as OPay, Flutterwave, Paystack and Moniepoint have achieved remarkable growth by serving millions of Nigerian customers and businesses, but much of the financial gains from future public listings may accrue to foreign investors if the firms choose overseas exchanges.
He noted that Nigeria possessed many of the ingredients required to produce globally competitive technology firms, including a large population, a youthful workforce and increasing digital adoption.
David argued that foreign listings often shift valuation, trading activity, and investment opportunities to international markets, limiting local investors’ ability to participate in the growth of companies emerging from Nigeria’s economy.
• Image / story credit: The Guardian Nigeria
