Pros and Cons of Flutterwave’s Listing on Nigeria’s NGX

Flutterwave, a fintech company, plans to list on Nigeria’s NGX, offering benefits like easier capital access and boosting the tech sector. However, its profitability issues and regulatory obligations may hinder success, especially in a challenging economic environment. Therefore, engaging international investors could enhance its prospects.

Flutterwave, a prominent fintech company founded in 2016 by Nigerian entrepreneurs Olugbenga Agboola and Iyinoluwa Aboyeji, is planning to list on the Nigerian Stock Exchange Group (NGX). This move marks a significant decision for the company, which operates in several African nations and achieved unicorn status in 2021. While not the first fintech to pursue listing, its youthful status raises questions about its suitability for public trading in Nigeria.

In summary, Flutterwave’s potential listing on the NGX presents both opportunities and challenges. While it can enhance access to capital and boost the tech sector’s morale, concerns regarding profitability and stringent regulatory demands must be addressed. Furthermore, the unfavorable macroeconomic conditions indicate that proceeding with the listing at this time could be considered a risky venture. Collaborating with foreign investors through avenues like American depository receipts could be a viable strategy to maximize investor interest and market success.

Original Source: www.connectingafrica.com