Economy
Agama Advocates Capital Market Integration to Unlock West Africa’s Growth
By Aduragbemi Omiyale
West African countries have been urged to accelerate the integration of their capital markets because it is the only way to mobilise the scale of investment needed to drive the region’s development.
This was the submission of the Director-General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, at the Experts Meeting on Validation of the WASRA Charter and Recognition of WASRA as the Regulatory Body for Cross-Border Securities Market in ECOWAS on Thursday in Abuja, Nigeria.
The SEC chief, who is also the WASRA Chairman, said the initiative represents “a watershed moment” in the region’s financial history, noting that West Africa faces urgent developmental challenges ranging from infrastructure deficits and climate adaptation to digital transformation and job creation.
“To meet these challenges, we require capital at scale, and the truth is simple: no single national market can provide it alone. An integrated regional capital market is no longer a luxury; it is a necessity,” he pointed out, lamenting the slow pace of regional integration, warning that “each year of delay is a lost opportunity to mobilise resources for critical projects that can transform our economies.”
Mr Agama also pointed to Africa’s annual infrastructure financing gap of over $100 billion, stressing that West Africa alone requires tens of billions of dollars to modernise transport corridors, upgrade energy systems, and build resilient digital infrastructure.
“Without integrated markets that pool liquidity and broaden investor participation, our governments and private sector will remain constrained, relying on limited fiscal space and expensive borrowing,” he declared.
Drawing lessons from global models, he noted that the European Union and ASEAN achieved significant economic transformation by harmonising rules, fostering investor confidence, and facilitating seamless cross-border funding.
“The creation of a single market enabled European firms to access funding seamlessly across borders, boosting innovation and competitiveness. Closer to home, ASEAN coordinated standards and deepened financial cooperation, strengthening its resilience as a regional bloc,” he disclosed, emphasising that West Africa, with its population of more than 400 million and a combined GDP of about $800 billion, has even greater potential, cautioning that “potential means little without decisive action.”
Mr Agama outlined how integration would bring benefits beyond infrastructure, noting that “in agriculture, integrated markets can mobilise capital for value-chain development, agro-processing, and food security, which are critical priorities for our region”.
“In the digital economy, regional capital can support innovation hubs, fintech scale-ups, and broadband expansion, ensuring that West Africa fully participates in the fourth industrial revolution,” he added.
The DG further stressed that cross-border pools of capital, backed by harmonised regulation, could deliver “transformative impact” across multiple sectors, including youth empowerment and job creation.
Presenting the objectives of the West Africa Securities Regulators Association (WASRA), Agama said the body was established with a clear mandate to anchor market integration, adding that the group will foster integration through joint programmes and common projects, promote mutual assistance across the region, and set common standards for effective regulation.
“Integration is not only about policy declarations; it is about practical collaboration and shared initiatives that deliver results for our markets and our people,” he stressed.
Mr Agama called on policymakers, especially finance ministers within ECOWAS, to champion the WASRA initiative, stating that “The political will of our leaders is the single most important factor in moving from aspiration to reality”.
“WASRA stands ready, in partnership with ECOWAS, WACMIC, and WAMI, to provide the technical leadership required.”
Also speaking at the meeting, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, noted that the gathering marked a significant step in the collective “journey toward a harmonized regulatory framework, one that reflects the shared aspirations of ECOWAS member states to deepen capital market integration, enhance cross-border investments, and promote financial stability.”
Mr Edun, represented by the Principal Economist in the Federal Ministry of Finance, Mr Hassan Adamu Jibrin, pointed out that validation of the draft WASRA Charter is not merely a procedural formality, but a critical foundation for institutional coherence, regulatory cooperation, and sustainable market development across our sub-region.
On his part while speaking on behalf of ECOWAS Commission, the acting Director Private Sector, Mr Peter Oluonye, noted that for capital markets integration to gain traction in ECOWAS, there is the need for concerted efforts of all stakeholders at harmonizing rules, practices and regulations, to the standards acceptable to all jurisdictions.
“We are well aware that our member states depend much on external capital flows and direct investment to sustain and deliver on economic development programmes of our governments.
“The region is in dire need to develop critical economic infrastructure projects, requiring huge capital investment and facilitate gross capital formation. The capital market is a major vehicle that should support this aspiration.
“The need to drive our capital markets integration initiative to break down barriers to movement of capital within the region by ensuring a harmonized regulatory space, common market information platforms, interlinked trading systems, cross-border trade and payments settlement, harmonized accounting standards and internationally acceptable governance standards and institutions cannot be over-emphasized at this juncture in our economic integration initiatives,” he stated.
By Dipo Olowookere
Nigeria’s stock market further depleted by 1.44 per cent on Wednesday following panic sell-offs by investors, who are cutting down their exposure to local equities.
Business Post observed that profit-taking dominated Customs Street at midweek, with all the key sectors of the Nigerian Exchange (NGX) Limited closing in red.
The insurance space shed 2.76 per cent, the industrial goods index lost 1.55 per cent, the banking counter declined by 1.53 per cent, the consumer goods segment shrank by 0.28 per cent, and the energy sector weakened by 0.05 per cent.
As a result, the All-Share Index (ASI) contracted by 3,554.05 points to 243,132.61 points from 246,686.66 points, and the market capitalisation moderated by N2.279 trillion to N155.940 trillion from N158.219 trillion.
Lafarge Africa led the losers’ chart yesterday after it gave up 9.97 per cent to trade at N307.90, Zichis lost 9.82 per cent to close at N29.20, Learn Africa depreciated by 9.80 per cent to N11.50, John Holt crashed by 9.80 per cent to N13.80, and Consolidated Hallmark dipped by 8.84 per cent to N6.19.
On the flip side, Abbey Mortgage Bank topped the gainers’ log after it grew by 9.93 per cent to N7.75, International Energy Insurance appreciated by 9.89 per cent to N6.00, Tripple G gained 9.80 per cent to sell for N4.37, Universal Insurance expanded by 8.91 per cent to N1.10, and Royal Exchange improved by 7.14 per cent to N1.50.
A total of 17 stocks gained weight yesterday, while 43 stocks lost weight, indicating a negative market breadth index and weak investor sentiment. This has been the mood of the market since the beginning of this week.
Market participants transacted 923.0 million shares worth N42.3 billion in 69,332 deals on Wednesday, in contrast to the 718.8 million shares valued at N29.3 billion traded in 71,683 deals on Tuesday, representing a drop in the number of deals by 3.28 per cent, and a rise in the trading volume and value by 28.41 per cent and 44.37 per cent, respectively.
Sterling Holdings led the activity chart with 264.6 million units valued at N2.1 billion, Access Holdings traded 76.7 million units worth N1.8 billion, Linkage Assurance exchanged 55.1 million units for N99.2 million, VFD Group sold 35.5 million units worth N378.8 million, and Ellah Lakes transacted 33.1 million units valued at N334.3 million.
By Adedapo Adesanya
Oil prices rose around 2 per cent on Wednesday as hostilities in the Middle East erupted anew and talks between Iran and the United States showed little progress.
Brent futures grew by $1.81 or 1.89 per cent to $97.81 per barrel, and the US West Texas Intermediate (WTI) crude climbed $2.26 or 2.41 per cent to $96.02 a barrel.
According to reports, Iran launched ballistic missiles toward regional neighbours Kuwait and Bahrain, killing one person and injuring dozens, while the US forces conducted strikes on Iran’s Qeshm Island.
Iranian drones and missiles struck Kuwait International Airport overnight, causing the country to immediately suspend air traffic, activate emergency procedures, and divert flights to alternative airports.
Iran’s Revolutionary Guard said the operation was retaliation for recent US military actions and warned that regional states supporting American operations could face further consequences. Kuwait hosts major US military facilities and serves as a key logistics hub for American operations across the Middle East, but until then had largely avoided becoming a direct target.
Following the overnight attack, the United Arab Emirates (UAE) called for a united Gulf stance.
Meanwhile, President Donald Trump said Iran had agreed not to have a nuclear weapon and that Supreme Leader Ayatollah Mojtaba Khamenei was involved in negotiations. He has insisted this week that discussions remain active and said a broader agreement could emerge within days, while Iranian officials have delivered contradictory messages.
Iranian Foreign Minister Abbas Araqchi said contacts with American representatives have not been cut off, but no progress has been made in the negotiations.
The prolonged closure of the Strait of Hormuz continues to bottleneck global energy supplies, driving sustained upward pressure on oil markets.
The International Energy Agency (IEA) has warned that global oil inventories could hit critical levels ahead of peak summer demand if stock draws continue at their current pace.
Crude oil inventories in the US decreased by 8.0 million barrels during the week ending May 29, according to data from the Energy Information Administration (EIA) released on Wednesday. The EIA’s data release follows figures by the American Petroleum Institute (API) that were released a day earlier, which reported that crude oil inventories saw a draw of 6.75 million barrels in the period.
By Adedapo Adesanya
The chief executive of the Central Securities Clearing System (CSCS) Plc, Mr Shehu Yahaya Shantali, says Nigeria’s shift to a T+1 settlement cycle goes beyond faster transactions and is intended to deepen long-term growth in the capital market.
Speaking at a ceremony marking the commencement of T+1 settlement in Lagos, Mr Shantali described the development as a strategic milestone that goes beyond faster transaction timelines to reinforce the market’s structural strength and future readiness.
According to him, the shortened settlement cycle reflects years of investment in infrastructure, technology, and stakeholder collaboration aimed at transforming Nigeria into a globally competitive investment destination.
Nigeria recently became the first market in Africa to adopt the T+1 framework, reducing the settlement period for securities transactions from two days to one.
According to the boss of the securities depository firm, the shortened settlement cycle reflects years of investment in infrastructure, technology, and stakeholder collaboration aimed at transforming Nigeria into a globally competitive investment destination.
“These investments are not solely for T+1 settlement but to position Nigeria’s capital market for sustained growth and longterm competitiveness,” he said.
The migration from T+1 settlement is expected to enhance liquidity, improve capital efficiency, and reduce counterparty risk across the market.
Mr Shantali explained that the T+1 transition represents the culmination of a decades-long evolution from a manual, paper-based system to a fully automated, technology-driven post-trade environment.
He recalled that investors previously waited several months to complete transactions under the old system, but successive reforms, including transitions to T+5, T+3, and T+2, steadily improved efficiency and market integrity.
The latest upgrade, he said, builds on extensive preparations undertaken over the past three years, including system enhancements, process optimisation, and market-wide readiness assessments coordinated by the SEC and industry stakeholders.
On his part, the Director-General of the Securities and Exchange Commission (SEC), Mr Emomotimi Agama, said the reform signals Nigeria’s readiness to compete at the highest levels of global finance, noting that the country transitioned from T+2 to T+1 within six months.
“The era of T+1 has begun,” Mr Agama said, adding that shorter settlement cycles are critical to attracting global capital and strengthening investor confidence.
He noted that leading markets such as the United States, Canada, and India have already adopted T+1 settlement, while several European markets are preparing to migrate, making Nigeria’s transition a crucial step in maintaining international relevance.
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