President Bola Tinubu has given approval for the investment of $75 million in Flutterwave, as part of the payments company’s efforts to raise $250 million through an Initial Public Offering (IPO).
The investment is expected to be executed through the Ministry of Finance Incorporated (MoFI), according to reports on Monday.
Since its founding in 2016, Flutterwave has rapidly expanded and now has a presence in about 30 African countries. The company’s valuation is at $3 billion.
According to the reports, the fintech company approached the federal government last year to participate in the offer, which has been in motion since it was first touted as far back as 2022.
Flutterwave’s IPO has been delayed by its lack of sustained profitability, earlier governance and misconduct scandals, and unfavourable global market conditions.
It was gathered that MoFI engaged two of the Big Four global accounting and auditing firms to carry out a detailed review of the company’s financial statements and operations, in a move aimed at ensuring due diligence and strengthening investor confidence.
Citing sources, the newspaper said Flutterwave brought Nigerian government participation to secure sovereign backing and reinforce confidence in Nigeria’s growing technology sector.
According to the sources, the move was also intended to project Nigeria’s potential on the global stage, adding that the company is also using the IPO to widen ownership and allow more Nigerians to invest in its growth.
The paper also reported that the IPO would expand ownership, giving more Nigerians the opportunity to invest in one of Africa’s leading fintech companies.
Market interest in the offer is said to be strong, with existing investors indicating plans to increase their stakes, while new institutional players are also positioning to participate.
This development is coming after the Central Bank of Nigeria (CBN) granted Flutterwave a license to operate microfinance banking services in Nigeria. The license enables the company to hold funds and deposits directly, strengthening its financial infrastructure across its largest market and enabling more efficient financial services and settlement flows for consumers, businesses and enterprises.
