A growing number of Nigerian companies are establishing corporate ties with the United States, the United Kingdom and the United Arab Emirates as economic pressures and currency instability push businesses to seek international markets.
A new report by TLP Advisory, titled Home & Away: Tracking African Tech’s Global Footprints, found that 74 per cent of Nigerian companies maintain affiliations with the United States, largely for corporate incorporation and access to international funding.
The report, unveiled in Lagos on Saturday, disclosed that Nigerian technology startups attracted $572m in venture capital funding in 2025, representing approximately 14 per cent of total funding raised across Africa.
However, currency depreciation, limited domestic exit opportunities and the demands of international investors are increasingly forcing Nigerian founders to establish corporate structures outside the country.
US Preferred for Holding Structures
According to the report, the United States remains the preferred destination for foreign corporate affiliations, particularly for holding structures and fundraising purposes.
The United Kingdom offers a broader combination of business operations, regulatory licensing and commercial activities.
The study examined 100 technology companies across Nigeria, Kenya, South Africa, Egypt, Ghana and Morocco.
It found that 81 per cent of US affiliations were exclusively linked to holding structures, while companies with UK and UAE connections were more likely to pursue operational expansion and regulatory engagement.
Among companies with UK affiliations, 84 per cent had incorporated there, 47 per cent maintained an operational presence, while 19 per cent held regulatory licences.
By comparison, only three per cent of US-affiliated companies and four per cent of UAE-affiliated companies held regulatory licences.
Naira Depreciation Drives the Trend
The report pointed to the naira’s sharp depreciation following the Central Bank of Nigeria’s exchange-rate reforms and unification of foreign exchange windows in June 2023.
The naira weakened from approximately ₦461 to the dollar to about ₦1,540 by early 2025 before closing the year at around ₦1,450.
The situation has placed additional pressure on startups, particularly as 76.5 per cent of funded Nigerian technology companies reportedly raise investment in US dollars while generating revenue predominantly in naira.
This currency mismatch has increased the cost of servicing dollar-denominated obligations and complicated financial planning.
Operational Foundations Remain in Nigeria
Despite the growing international corporate presence, the report noted that the operational foundations of many Nigerian technology companies remain firmly within the country.
Their engineering teams, customers and core business activities are largely based at home.
Flutterwave Founder and CEO Olugbenga Agboola said international expansion had become necessary for African companies seeking access to global capital, talent and business opportunities.
He explained that generating revenue across different markets and currencies had helped the company manage foreign exchange risks.
However, industry experts have cautioned founders against rushing into international expansion without adequate financial preparation.
The Head of Growth at Moniepoint Group, Dolapo Omotoso, warned that establishing a presence in Western markets could expose companies to significant operational expenses and demanding compliance requirements.
