The Nigerian Exchange Group (NGX) has emphasized the need for increased regional collaboration to harness West Africa’s vast trade and investment opportunities. Speaking at the 2025 West Africa Economic Summit (WAES), Group Chairman Alhaji Umaru Kwairanga highlighted that despite the region’s rich natural resources, it continues to experience capital scarcity. The summit, themed ‘Unlocking Trade and Investment Opportunities in the Region’, served as a platform for stakeholders to explore how structured financial ecosystems can convert resource wealth into economic prosperity.
Kwairanga identified a paradox: West Africa possesses an abundance of raw materials but lacks capital. This disconnect, he argued, stems from historically poor integration of resources into formal financial systems. He proposed that commodities—agricultural, mineral, and energy—should be reimagined not just as tradable goods but as investable assets that can drive industrialization, create jobs, and promote macroeconomic stability across the region.
Highlighting NGX’s role, Kwairanga underscored the Group’s efforts in creating market infrastructure to facilitate price discovery, investor protection, and seamless settlement. He pointed to the success of NGX-listed companies like Presco and Okomu Oil as examples of how structured capital markets can mobilize investment into commodity value chains. NGX aims to deepen the investment landscape through initial public offerings (IPOs), bonds, and specialized funds targeting key sectors.
Addressing the debate between national versus regional exchanges, Kwairanga proposed a dual strategy. While national commodity exchanges are essential for addressing local market dynamics, he stressed that only a regional framework can fully unlock intra-African trade potential. He highlighted the need for regulatory harmonization, citing initiatives like the African Exchanges Linkage Project and the Pan-African Payment and Settlement System as critical to achieving cross-border market integration.
Kwairanga concluded by advocating for public-private partnerships to solve liquidity challenges and incentivize participation. He reaffirmed NGX’s dedication to building a resilient capital market infrastructure that supports regional growth. The summit gathered policymakers, investors, and economic leaders from across West Africa to strategize on fostering a unified, thriving trade and investment environment.
Source: Leadership