Flutterwave eyes NGX listing

What is the most effective way to oppose an unfavourable government decision? A lobby? A protest? A strike? 

In Kenya, the latter two are often the strongest tools to prevent the government from overreaching.

Kenyan boda boda riders—commercial motorcycle operators—have pushed back against a government effort to regulate their sector. Last Wednesday, the Public Transport (Motorcycle Regulation) Bill, 2023, proposed by Senator Bonny Khalwale, reached the National Assembly.

The bill contains guidelines for boda boda riders to become legally required to register their vehicles and show ownership, put trackers on their motorcycles, and have motorcycle owners and riders in hire-purchase contracts enter formal contracts. For instance, formal contracts between owners and riders can help address common disputes, such as daily driver remittances. Tragically, on February 7, Jackson Mukundi, a Kenyan boda boda rider, was murdered. During the ongoing investigations, his employer has been identified as the alleged killer.

The bill is an attempt to curb reckless riding, protect riders, and improve public safety.

However, the Boda Boda Association of Kenya has threatened to go on strike. They claim that some provisions in the bill are impractical and could put them out of business. Specifically, they view the government surveillance, passenger limits (boda boda riders must carry only one passenger per trip), heavy fines for violations, and jail terms for non-compliance as an impasse.

While the regulations may seem harsh, boda boda riders have long been linked to public safety issues. Police efforts to collaborate with riders to reduce motorcycle-related crimes have had limited success. Boda bodas are heavily linked to various crimes, including robbery, assault, drug trafficking, and even murder. 79.5% of fatal motorcycle incidents are also caused by reckless driving, such as hit-and-runs after robberies.

The proposed regulations could impact three million riders, many of whom rely on this work for their daily income. Additional documentation means extra costs, but the surveillance also targets rogue drivers, who fear the crackdown. 

Motorcycles often face scrutiny across Africa. Rwanda, for example, has successfully regulated its motorcycle sector, reducing crime. Other African cities have banned motorcycles from plying major roads altogether.

Kenya's motorcycle regulation will help it achieve two goals: to monitor a sector that has been a public safety headache for years, as well as add an unassuming, yet unpredictable income source for the government. A regulation is practical here, and it will have an impact on Kenya's tech sector where food delivery startups often employ boda boda riders to deliver customer orders. Kenyan law-makers and boda boda riders will need to reach a compromise.

When Flutterwave’s CEO, Olugbenga Agboola shared in early February that the company will only pursue IPO ambitions after it hit profitability, it took many by surprise that the fintech giant was not yet profitable. Well, for a company in a growth phase, that was expected. The company had rapidly been expanding and acquiring licences across Africa.

Flutterwave was again in the news yesterday, after Agboola met with Nigeria’s President Bola Tinubu to discuss a potential listing on the Nigerian Stock Exchange (NGX), according to Bayo Onanuga, Special Adviser on Information and Strategy to the President.

The fintech giant, last valued at $3 billion, would become one of the most valuable companies on the NGX—surpassing any financial institution listed on the exchange. However, questions remain about whether the NGX can provide the type of exit that dollar-based investors seek. Typically, high-growth African startups favour dual listings or IPOs on foreign exchanges like the NYSE, though Jumia’s listing experience may serve as a cautionary tale.

For a company yet to reach profitability, the NGX listing might be far off. The exchange favours dividend-paying stocks, and Flutterwave will need to turn a profit before it can meet that expectation.

The NGX, which launched its tech board in 2022, has been actively courting tech companies with favourable listing conditions, possibly offering Flutterwave incentives to list locally. If Flutterwave proceeds with an NGX IPO, it will join Tizeti, another Nigerian tech company which plans to list on the bourse, marking a significant win for Nigeria’s stock market. A Flutterwave listing can also encourage other tech companies to list on the stock exchange. 

News of Flutterwave’s potential listing comes amid renewed investor confidence in Nigeria’s economy. A rally in banking stocks and increased capital inflow have strengthened the country’s financial markets, with Bloomberg reporting that Nigeria’s sovereign risk spread has dropped to its lowest level since January 2020.

For Flutterwave, an IPO is a logical next step. With few alternatives left, the company’s decision to go public has been long anticipated. But listing on the NGX alone may not satisfy its global investors. Whether this is part of a broader dual-listing strategy or a shift in the company’s long-term vision remains to be seen.

A federal high court in Lagos has ordered the forfeiture of $4.7 million, ₦830.9 million ($553,100), and multiple properties linked to former Central Bank of Nigeria (CBN) Governor Godwin Emefiele. This ruling, issued by Justice Yellim Bogoro, follows a motion filed by the Economic and Financial Crimes Commission (EFCC), which claims the assets were proceeds of unlawful activities.

The funds, spread across First Bank, Titan Bank, and Zenith Bank, were allegedly connected to companies and individuals close to Emefiele, including Deep Blue Energy Service Limited and Lipam Investment Services Limited. Additional forfeitures include €20,000, £1,999.50, and investments worth $5.3 million.

Emefiele, who led the CBN from 2014 until his removal in 2023, is under investigation for fraud and corruption—charges he continues to deny. 

“The assets do not belong to our client or any member of his immediate family,” his legal team said in a statement.

This verdict comes as Emefiele faces heightened scrutiny over the controversial 2023 naira redesign, which, former acting CBN governor Folashodun Shonubi testified in October 2024, was politically motivated. Under Emefiele, the CBN bypassed established protocols, raising questions about governance within Nigeria’s apex bank.

The implications of this ruling are significant: beyond personal legal troubles for Emefiele, it reflects Nigeria’s growing effort to tackle high-level corruption, regardless of the status of the person standing trial. It could give a whole make-over to the anti-graft agency, EFCC, which has over the years received flak from citizens claiming it turns a blind eye to the misdeeds of influential people in the country.

The forfeiture also shows that there's some effort toward ensuring greater accountability in the country's financial institutions.