Nigeria Proposes Regional Framework for West African Capital Market Integration

Nigeria's Finance Minister, Taiwo Oyedele, has proposed a regional framework aimed at connecting the fragmented capital markets of West African countries. The plan, announced at the S&P Global Ratings Africa Summit in Lagos on November 10, 2026, seeks to reduce regulatory and administrative barriers that have limited cross-border investment within the region. The proposed framework covers Nigeria, Ghana, Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.

A key component of the proposal is a regional securities passport, which would allow companies approved to issue securities in one participating market to access other markets without repeating the entire regulatory approval process. This could reduce compliance costs, simplify market entry, and give businesses access to a wider pool of investors. Additionally, a unified investor identification system would enable investors registered in one participating market to purchase bonds and equities across the region without repeatedly completing onboarding procedures.

The proposed framework also includes connected trading, settlement, and payment infrastructure to support cross-border securities transactions and improve the efficiency of regional investment. A regional local-currency bond index and a credit-enhancement facility are intended to support infrastructure financing. These instruments could improve the visibility of regional debt markets and help address some of the risks that discourage investors from financing projects across national borders.

The economic opportunity for West African countries is considerable, with a need for long-term capital for transport infrastructure, energy development, industrialization, and digital connectivity. However, fragmented regulations, limited market liquidity, and different settlement procedures often make it difficult for businesses to attract investment beyond their domestic markets. A more integrated financial system could help address these constraints by widening the investor base and making it easier for companies to access financing.

The initiative builds on existing integration efforts, including the West African Capital Markets Integration Council, the African Exchanges Linkage Project, and the Pan-African Payment and Settlement System. Connecting these existing structures could provide a more practical route towards regional financial integration. However, achieving this ambition will require more than a common securities passport, and participating countries must agree on disclosure requirements, investor protection, enforcement procedures, and regulatory responsibilities.

Nigeria has indicated support for beginning with practical pilot arrangements involving Nigeria, Ghana, and the regional BRVM exchange. This phased approach could help participating institutions identify operational challenges before extending the framework more widely. The real value of the proposal will depend on whether it moves beyond policy discussions into systems that investors and businesses can use.

If implemented with credible safeguards, the proposal could improve access to capital, support infrastructure development, and create new opportunities for businesses in West Africa. The proposal's success will be closely watched by investors, businesses, and governments in the region, who are eager to see whether it can unlock more investment and support economic growth.

Key points

• The proposal aims to create a more connected financial market in West Africa, allowing investors to access opportunities beyond their domestic economies.
• A regional securities passport and unified investor identification system are central components of the proposed framework.
• The initiative builds on existing integration efforts, including the West African Capital Markets Integration Council and the African Exchanges Linkage Project.