Stakeholders leverage AfCFTA, fintech listings for capital market growth

Nigeria’s capital market has been identified as a critical driver for achieving the government’s $1 trillion economy target by 2030. During a recent forum, stakeholders emphasized harnessing the African Continental Free Trade Area (AfCFTA) and integrating fintech companies into the market as key strategies to achieve this goal. Leaders, including Marble Capital CEO Akeem Oyewale and representatives from the Securities and Exchange Commission (SEC), highlighted the capital market’s role in enabling sustainable growth and intra-African trade. They stressed the importance of proactive measures to maximize opportunities in the regional economic landscape.

Central to the discussions was the Pan-African Payment and Settlement System (PAPSS), a transformative tool simplifying cross-border trade by enabling local currency transactions across African nations. Oyewale cautioned that Nigeria risks losing out to countries like Ghana if swift action isn’t taken to adopt PAPSS and enhance regional market integration. Fintech’s role also featured prominently, with calls for platforms like Paystack and Flutterwave to list on the Nigerian Exchange, driving market participation and deepening its impact. Regulatory reforms under the upcoming Investment and Securities Bill (ISB) 2024 are expected to pave the way for such advancements.

Additionally, stakeholders pointed to the capital market’s potential to address Nigeria’s infrastructure deficit and foster environmental sustainability through innovative financial instruments like sukuk and green bonds. The forum concluded with a call for collective action from regulators, market players, and government institutions to unlock the country’s economic potential. Initiatives such as transitioning to a T+1 settlement cycle and fostering transparency in state financing were underscored as crucial steps to position Nigeria as a financial leader in Africa.