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Only 9 out of 157 quoted companies on NGX are technology based- PwC

All-Share Index declines -0.48% as NGX closes the week negative

Key Highlights


PricewaterhouseCoopers (PwC ) Nigeria has disclosed that out of the 157 companies listed on the Nigerian Exchange (NGX), only 9 companies with a combined market capitalization of circa N11 trillion are technology-based companies excluding traditional banks which have incorporated technology into their operations.

PwC stated this in a report tagged ‘Growing the Nigerian Technology Ecosystem through the Capital Markets’ obtained by Nairametrics.

Tech-sector underrepresented in the capital market

The professional services firm noted that albeit the growing tech sector in the Nigerian economy and significant private funding secured by African tech start-ups over the years the tech sector is grossly underrepresented in the Nigerian capital market.

According to the report, as of 31 December 2022, the top 10 companies by market capitalization on the NGX were dominated by ICT and Industrial goods companies accounting for 70% of the total market capitalization.

Creation of a technology board

The report noted that the proposed creation of a technology board by the NGX is a laudable initiative and once launched is expected to promote more listings from African technology companies and create an inclusive environment that would serve as a catalyst for further economic advancements whilst deepening the Nigerian capital market.

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Nigeria has a fast-growing tech sector

According to the report, Nigeria has a fast-growing tech sector mainly driven by financial services and telcos.

Healthy ecosystem needed

The report noted that despite these impressive performances, the Nigerian capital market does not optimally reflect the activities of the sector.

It added that a healthy ecosystem that creates a balance for all subsectors of the technology ecosystem and ensures the optimal flow of required funding to innovate and grow while strengthening governance for long-term sustainability is fundamental to enhancing economic growth.

Impressive growth for African tech

According to the report, in Africa, the tech ecosystem has experienced impressive growth and is evolving rapidly.

What you should know

The Nigerian Exchange Limited (NGX) is set to launch a Technology Board. The Technology Board is a specialized platform for technology-based companies to list and raise capital on the NGX.

Consequently, in December 2022 the Securities and Exchange Commission (SEC) approved the NGX Rules for listing on the Technology Board (The Rules).

The Rules aim to attract technology companies to the capital market with less stringent listing requirements (compared to other listings boards) and provide Issuers, sponsors, investors, and advisors with important information about admissions, listings standards, disclosure, and notification requirements for the Technology Board.

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