West African Governments Urged to Leverage Capital Markets for Development

The Director General of the Securities and Exchange Commission (SEC) of Nigeria, Dr. Emomotimi Agama, has urged governments across West Africa to prioritize and actively utilize capital markets as a strategic tool for long-term economic development and inclusive wealth distribution.

Speaking at the sidelines of the inaugural West Africa Conference organized by the International Capital Market Association (ICMA) in Accra, Ghana, Dr. Agama emphasized that the capital market holds transformative potential for the region’s financial future. According to him, many African nations have yet to fully tap into the power of capital markets, resulting in persistent challenges in financing long-term infrastructure and development projects.

“The capital market is the lifeblood of any nation’s economic progress. Without a vibrant and well-structured capital market, we cannot effectively finance the large-scale, long-term initiatives that build resilient and prosperous economies,” he said.

Dr. Agama’s remarks come at a critical juncture for the region, which is simultaneously navigating the challenges of post-pandemic recovery and securing adequate resources for sustainable development. He stressed that governments must go beyond rhetorical support and adopt concrete reforms that would make capital markets more accessible, transparent, and effective as tools for financing development.

Highlighting Nigeria’s recent legislative achievement, Dr. Agama pointed to the enactment of a new Investment and Securities Act—a law passed nearly two decades after the previous legislation—as a forward-thinking measure designed to strengthen Nigeria’s capital market ecosystem. “This is a major leap forward. The new law represents what can be achieved when political commitment is matched with technical innovation,” he added.

He also called for greater regional collaboration, underscoring the need for harmonized regulatory frameworks and coordinated investor education initiatives. Such efforts, he said, are essential in building investor confidence and unlocking domestic and foreign capital for regional development.

At the same event, the Chief Executive Officer of the Ghana Stock Exchange (GSE), Abena Amoah, reaffirmed Ghana’s commitment to strengthening financial integration across the region. She revealed that through the ongoing West Africa Capital Markets Integration Project, investors from Ghana will soon be able to seamlessly trade securities listed on exchanges in Nigeria and the Bourse Régionale des Valeurs Mobilières (BRVM) in Abidjan, which serves eight Francophone West African countries.

“This is about expanding opportunity. Soon, a Ghanaian investor will not be limited to local securities but will also be able to invest in Nigerian and BRVM-listed instruments from a single platform,” said Mrs. Amoah. She emphasized that regional capital market integration is crucial for enhancing liquidity, deepening market participation, and fostering shared economic prosperity.

According to her, several new initiatives are in development and will be announced by the end of the year, promising even more cross-border investment opportunities for West African citizens.

ICMA’s CEO, Bryan Pascoe, also addressed the conference, highlighting the importance of private-sector leadership and market-driven reforms. He advocated for the creation of common industry standards, diversification of market participants, and the introduction of products that can boost market liquidity.

“While policy support is crucial, industry practitioners must also take the lead. Establishing shared practices and working collectively can drive the market forward,” Pascoe stated. He reiterated ICMA’s commitment to supporting the development of robust, sustainable capital markets across West Africa through partnerships, technical assistance, and capacity-building programs.

Overall, the conference underscored a shared vision among regulators, policymakers, and market participants: that deepening capital markets and fostering regional cooperation are essential steps toward building a more resilient, inclusive, and prosperous West Africa.