The Federal Government has proposed a regional capital market framework that would allow companies and governments to raise funds across 10 West African countries without undergoing separate regulatory approval processes in each participating market.
The initiative is aimed at removing barriers to cross-border investment, strengthening regional financial integration and improving access to long-term capital for infrastructure and economic development.
The Minister of Finance, Taiwo Oyedele, presented the proposal at the S&P Global Ratings Africa Summit in Lagos, where he highlighted the limitations created by fragmented capital markets across the West African region.
Oyedele said individual markets within the region lacked sufficient depth to independently mobilise the scale of financing required to support major infrastructure and economic development projects.
He explained that a more integrated capital market structure would enable governments and businesses to access a broader pool of investors while reducing regulatory bottlenecks associated with cross-border fundraising.
Under the proposed framework, an issuer approved by the regulatory authority in one participating country would be able to raise capital in other member markets without repeating the entire approval process.
The arrangement, described as a regional capital market passport regime, is expected to simplify securities issuance and encourage greater participation by institutional and individual investors across the region.
Nigeria is also proposing a unified investor identification system that would allow investors registered in one participating country to purchase bonds and equities in other markets without repeating registration and verification procedures.
The proposed framework could significantly improve the movement of investment capital across West Africa by reducing administrative costs and making regional financial markets more accessible.
It is also expected to create opportunities for businesses seeking expansion capital and governments looking to finance large-scale infrastructure projects.
The initiative comes amid increasing recognition that stronger regional financial integration is necessary to mobilise the substantial resources required to support economic growth across African countries.
However, its successful implementation will depend on cooperation among participating governments, securities regulators and financial market institutions, particularly in harmonising regulatory standards and investor protection mechanisms.
If adopted, the regional framework could strengthen West Africa’s capital market ecosystem, deepen liquidity and improve the region’s attractiveness to international investors.
