Nigeria has proposed a series of regional capital market reforms aimed at making it easier for investors to trade bonds and other financial securities across West Africa, as the Federal Government seeks to attract more investment and unlock long-term financing for infrastructure and economic development.
The proposal was presented by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, at the S&P Global Ratings Africa Summit in Lagos on Tuesday, November 10, 2026.
Oyedele explained that fragmented financial markets across West Africa have continued to limit the ability of businesses and governments to access substantial long-term funding.
According to him, individual capital markets within the region are often too small to attract the scale of investment required to finance major infrastructure projects and support economic expansion.
He argued that greater integration would allow investors to access opportunities across multiple countries without facing unnecessary regulatory and administrative barriers.
One of the major proposals is the introduction of a regional passport system that would enable companies approved to raise capital in one participating market to access investors in other participating countries without undergoing separate regulatory approval processes in every jurisdiction.
The proposed framework is expected to reduce the time and cost associated with cross-border fundraising while improving access to a wider pool of investors.
Another proposal involves establishing a unified investor identification system.
Under the proposed arrangement, investors registered in one participating country would be able to purchase bonds and equities in other markets without having to repeat the entire registration and onboarding process.
Oyedele also called for stronger connections between regional trading, settlement and payment infrastructure.
This would allow securities transactions to be settled directly in local currencies, reducing the region’s dependence on the United States dollar for certain financial transactions.
The initiative would cover 10 West African countries, including Nigeria, Ghana, Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo.
The minister noted that existing regional initiatives, including the West African Capital Markets Integration Council, the African Exchanges Linkage Project and the Pan-African Payment and Settlement System, could provide a foundation for achieving greater integration.
He argued that the next stage should involve bringing these separate initiatives together into a more coordinated financial system.
Additional proposals include creating a regional local-currency bond index and establishing a credit enhancement facility to support cross-border infrastructure financing.
A regional bond index could provide investors with a clearer picture of market performance and investment opportunities, while a credit enhancement facility could help reduce some of the risks associated with financing large projects.
The proposed reforms come as Nigeria continues to pursue a broader strategy to strengthen its domestic capital market.
Oyedele said the country is targeting a capital market valued at at least $1 trillion under its 10-year capital market plan. Nigeria is also aiming to achieve investment-grade credit ratings within three years.
A deeper and more integrated capital market could create additional opportunities for companies seeking funding outside traditional bank lending.
It could also encourage pension funds, insurance companies and other institutional investors to participate more actively in financing infrastructure and productive economic activities.
However, implementing the proposal will require cooperation among financial regulators, stock exchanges, governments and payment institutions across the participating countries.
Differences in regulatory requirements, investor protection rules, currency arrangements and market infrastructure will need to be addressed before a fully integrated system can operate effectively.
The proposal therefore represents an important policy direction rather than an already completed regional agreement.
If implemented successfully, the reforms could improve access to investment capital, encourage cross-border business activity and support the financing of infrastructure projects across West Africa.
For Nigeria, stronger regional financial integration could also reinforce its position as a major investment destination and expand opportunities for domestic businesses seeking access to international and regional capital.MarketScreener India+1
