Nigeria has proposed a series of reforms aimed at connecting capital markets across West Africa, making it easier for investors to buy bonds and other financial securities in neighbouring countries while expanding access to long-term funding for major infrastructure projects.
Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, presented the proposals at the S&P Global Ratings Africa Summit in Lagos on Tuesday, November 10, 2026.
The initiative is designed to address the challenges created by fragmented financial markets across the region. According to Oyedele, individual West African markets often lack the depth required to attract the large volumes of investment needed to finance infrastructure, businesses and broader economic development.
Nigeria wants participating countries to reduce regulatory and administrative barriers that currently make cross-border investment difficult. A more connected regional market could give governments and businesses access to a wider pool of investors instead of relying mainly on their domestic financial systems.
The proposed framework would cover 10 countries: Nigeria, Ghana, Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo.
Nigeria proposes regional passport system for bond issuers
One of the central proposals is the introduction of a regional capital-market passport system.
Under the proposed arrangement, companies and other issuers approved to raise funds in one participating country could potentially access investors in other member markets without having to complete separate regulatory approval procedures in every jurisdiction.
The system is intended to reduce the time, costs and administrative requirements associated with raising capital across national borders.
At present, differences in regulatory processes can make it difficult for businesses to issue securities in multiple countries. A regional passport could help address these obstacles by allowing participating regulators to recognise approvals granted in other markets, subject to agreed standards and safeguards.
If adopted, the framework could also provide businesses with access to a larger investor base, potentially improving their ability to raise funds for expansion and long-term projects.
However, the proposal would require cooperation among regulators and governments to establish common rules and determine how investor protection and regulatory oversight would work across the participating countries.
Unified investor identification system also proposed
Nigeria is also advocating a common investor identification framework that would make it easier for individuals and institutions to participate in financial markets across the region.
Under the suggested arrangement, an investor registered in one participating market could use an accepted identification system to purchase bonds and equities in other member countries without repeating the entire registration and onboarding process.
The proposal is intended to remove unnecessary administrative hurdles and encourage more participation in regional securities markets.
For institutional investors, including pension funds and asset managers, a simplified registration process could make it easier to diversify portfolios across different West African economies.
It could also create opportunities for investors to access financial instruments that may not be available in their domestic markets.
The success of such a system would depend on agreement over investor verification, regulatory compliance, data protection and the recognition of registration requirements across participating jurisdictions.
Plan seeks to reduce dependence on US dollar
Another important part of the reform agenda involves connecting regional trading, settlement and payment infrastructure.
Oyedele called for a system that would allow securities transactions between participating countries to be settled directly in local currencies, reducing the need to rely on the US dollar for certain cross-border financial activities.
Currency conversion requirements and payment arrangements can increase transaction costs for investors operating in different markets. Linking existing financial infrastructure could help simplify these transactions and improve the movement of investment funds across the region.
The minister identified existing initiatives, including the West African Capital Markets Integration Council, the African Exchanges Linkage Project and the Pan-African Payment and Settlement System (PAPSS), as platforms that could support the proposed integration.
PAPSS, in particular, provides a framework for cross-border payments in African currencies. Connecting such payment arrangements more closely with securities trading and settlement systems could help strengthen regional financial cooperation.
Oyedele said the priority was to bring existing initiatives together rather than allow them to operate as separate projects.
Regional bond index and infrastructure financing facility
Beyond regulatory harmonisation and payment connections, Nigeria is proposing the creation of a regional local-currency bond index.
Such an index could provide investors with a benchmark for monitoring the performance of bonds issued in participating markets. It could also improve access to information about regional debt instruments and help investors compare investment opportunities.
The government is also advocating a credit enhancement facility to support cross-border infrastructure financing.
Credit enhancement mechanisms are designed to reduce some of the risks associated with lending or investing in projects. Depending on how the proposed facility is structured, it could help make infrastructure investments more attractive to lenders and other sources of long-term capital.
The proposals are particularly relevant to a region facing substantial financing requirements for transport networks, energy projects, trade infrastructure and other development priorities.
A coordinated approach could potentially help governments and private-sector organisations attract funding from pension funds, insurance companies, development finance institutions and international investors.
However, the facility’s structure, funding arrangements and operating rules have not yet been fully detailed.
Nigeria targets $1 trillion capital market
The regional proposal forms part of Nigeria’s wider ambition to expand its domestic capital market and attract more investment.
Oyedele said the country was targeting a capital market valued at at least $1 trillion under its 10-year capital market plan.
He also stated that Nigeria aims to attain investment-grade credit ratings within three years.
Achieving these objectives would require stronger investor confidence, deeper financial markets and improved access to funding for businesses and public infrastructure.
A more developed capital market could provide companies with alternatives to traditional bank borrowing, while allowing governments and businesses to raise longer-term funds through bonds and other financial instruments.
The government also wants to make Nigeria a more attractive destination for both domestic and foreign investors.
Greater regional integration could support this ambition by connecting Nigerian businesses and financial institutions to a wider West African investment network.
Implementation remains a major challenge
Although the proposals could create opportunities for regional investment, putting them into practice will require considerable coordination among participating countries.
West African markets operate under different regulatory arrangements, financial systems and currency structures. The proposed framework would therefore need common standards covering securities issuance, investor identification, trading, settlement and regulatory supervision.
Countries would also need to agree on how disputes are handled and how investors are protected when transactions involve more than one jurisdiction.
The differences between Nigeria and Ghana’s currencies and the CFA franc used by the eight West African Economic and Monetary Union countries could also require careful consideration when developing local-currency settlement arrangements.
The proposals announced by Oyedele represent a policy direction rather than a completed regional agreement. Further negotiations and technical work will be necessary before investors and businesses can use the proposed systems.
If the participating countries reach agreement and successfully connect their financial infrastructure, the reforms could expand investment opportunities, improve access to long-term funding and support infrastructure development across West Africa.
For Nigeria, the initiative offers a route to deepen its capital market while strengthening its financial and economic links with neighbouring countries.
