PalmPay has come under fire over rumoured Hong Kong Stock Exchange Listing move.
NewsOnline Nigeria reports that Nigeria-focused fintech company PalmPay is facing criticism following reports that it is considering an initial public offering on the Hong Kong Stock Exchange rather than the Nigerian capital market.
The reported plan has raised questions about whether companies that generate substantial revenue from Nigeria should be allowed to list exclusively on foreign exchanges, limiting the ability of local investors to participate in their growth.
According to TechCabal, PalmPay is discussing a funding round that could raise about $200 million and value the company at more than $1 billion.
The fundraising, if completed, would give PalmPay unicorn status and could prepare the fintech for a future public listing in Hong Kong.
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The proposed IPO remains under consideration, however. PalmPay has not announced a listing date or appointed investment banks to manage a potential share sale. The fundraising target, valuation and listing plan could also change as discussions progress.
The development has attracted criticism on social media, where some Nigerians have questioned why a company that built a significant part of its business through Nigerian customers would choose to list its shares outside the country.
Some commentators have suggested that PalmPay should consider a dual listing, enabling it to access foreign capital while giving Nigerians an opportunity to own shares in a company whose growth has been driven substantially by the local market.
The concerns echo the position of the Group Managing Director and Chief Executive Officer of Nigerian Exchange Group Plc, Temi Popoola, who recently urged President Bola Tinubu to support measures that would encourage major companies operating in Nigeria, particularly high-growth fintech firms, to list on the domestic stock exchange.
During a meeting with the President, Popoola expressed concern that some companies generating substantial revenue and profits in Nigeria were considering floating their shares on foreign exchanges, thereby restricting local investors’ access to the wealth created by those businesses.
“Mr President, I bring to your attention something that we’re seeing happen recently that we could do with some support, which is an idea of companies that do business in Nigeria,” Popoola said.
“They earn a lot of their profits in Nigeria, but they take that wealth abroad to list on other exchanges.
“It’s a free market, but we should also allow locals to participate in the wealth that these companies are creating. Some of these fintechs, like OPay and PalmPay, are considering listings abroad.
“While we encourage free and open markets, let’s make sure our locals can also benefit. As they list abroad, they should also list in our country.”
Popoola urged the Federal Government to consider policies that would encourage or require companies pursuing international listings to undertake dual listings in Nigeria.
Such an arrangement would allow the companies to raise capital from international investors while providing Nigerians with access to their shares through the domestic stock market.
The debate goes beyond PalmPay. Several leading technology companies with substantial Nigerian operations have explored public listings outside the country.
OPay, which is backed by SoftBank Group, has reportedly engaged Citigroup, Deutsche Bank and JPMorgan Chase to work on a potential initial public offering that could value the company at up to $4 billion. The fintech is said to be considering a listing in the United States.
Flutterwave has also repeatedly been linked to a possible Nasdaq listing, although the company has not recently confirmed any definite IPO plans.
Other major Africa-focused companies have followed a similar path. Pan-African e-commerce company Jumia is listed on the New York Stock Exchange, while telecommunications infrastructure company IHS Towers delisted from the Nigerian Exchange before launching an IPO in New York.
These developments have intensified concerns that African companies are building valuable businesses with local customers, employees and infrastructure but creating public investment opportunities primarily for foreign investors.
Supporters of domestic or dual listings argue that Nigerians should have an opportunity to benefit financially from companies whose success is tied to their participation in the local economy.
They also contend that attracting major technology companies to the Nigerian Exchange would deepen the capital market, increase liquidity, attract younger retail investors and improve the visibility of Nigeria’s technology sector.
PalmPay’s reported preference for Hong Kong, however, appears connected to its ownership structure and relationship with Asian investors.
The fintech launched in Nigeria in 2019 with backing from Chinese smartphone manufacturer Transsion Holdings and semiconductor company MediaTek. Transsion owns the Tecno, Infinix and itel brands, which have a substantial presence in Africa’s smartphone market.
That relationship has reportedly given PalmPay a significant distribution advantage in Nigeria and other African countries.
The company has since expanded into markets including Tanzania, South Africa, Uganda and Côte d’Ivoire. It has also selected Hong Kong as the base for its multi-market operations and signed an agreement with the city’s Office for Attracting Strategic Enterprises.
A Hong Kong listing could give PalmPay access to Asian investors who are familiar with technology, financial services and consumer-focused companies. It could also enable early investors to sell part of their holdings and provide PalmPay with publicly traded shares for acquisitions and employee compensation.
Hong Kong has emerged as a leading international IPO destination. According to TechCabal, the Hong Kong exchange led global IPO fundraising in 2025, generating $37.4 billion from 119 listings.
Companies ultimately select listing destinations based on several factors, including access to capital, market liquidity, potential valuation, regulatory requirements, investor appetite and the interests of existing shareholders.
The controversy, therefore, is not simply about whether PalmPay has the right to list abroad. It concerns whether a company that earns substantial revenue from Nigeria should also give Nigerians an opportunity to participate in the wealth it creates.
Popoola’s proposal forms part of the NGX Group’s efforts to support the Federal Government’s ambition of developing a $1 trillion economy through deeper capital-market participation.
He projected that the value of companies listed on the Nigerian Exchange could rise to ₦230 trillion by the end of 2026, compared with about ₦160 trillion at the time of his remarks.
According to him, market capitalisation has increased significantly from approximately ₦30 trillion when President Tinubu assumed office in May 2023, reflecting stronger investor confidence and renewed activity in the market.
He argued that attracting more listings, particularly from fast-growing technology companies and strategic national assets, would deepen the market, expand investment opportunities and support long-term economic growth.
PalmPay has not formally confirmed that it will proceed with a Hong Kong IPO. Until the company announces a final decision, the proposed listing remains a reported plan rather than a completed transaction.
Nevertheless, the controversy has reopened an important national debate:, should companies be free to earn most of their profits in Nigeria and create investment opportunities exclusively abroad, or should they also be required to give Nigerian investors a stake in the wealth generated within their country?
