The Federal Government has approved a $75 million investment in Flutterwave, signalling increased state backing for Nigeria’s fast-growing technology sector as the company moves closer to a $250 million Initial Public Offering (IPO).
The approval, granted by President Bola Ahmed Tinubu, will see the investment executed through the Ministry of Finance Incorporated (MoFI), according to sources familiar with the deal.
Flutterwave, currently valued at over $3 billion, had approached the Federal Government last year to participate in the offering as part of efforts to deepen investor confidence and broaden ownership ahead of its planned listing.
Before giving the green light, the government reportedly engaged two of the “Big Four” global accounting firms to conduct a comprehensive review of the company’s financials and operations. The move was aimed at ensuring transparency and strengthening trust among prospective investors.
Sources said Flutterwave’s request for sovereign participation formed part of a wider strategy to reinforce credibility and showcase Nigeria’s potential on the global technology stage.
“The idea is to show that something good can come out of Nigeria and its promise,” one source said.
The IPO is also expected to open the door for more Nigerians to invest in the company’s growth story, expanding local participation in one of Africa’s most prominent fintech firms.
“Flutterwave wants to give Nigerians the opportunity to own a piece of the company,” another source added.
Early indications suggest strong market appetite for the offer, with existing investors considering increasing their stakes and new institutional players expressing interest. Analysts say the offering could be oversubscribed given the company’s growth trajectory.
