Nigeria Plans African Depositary Receipts to Chase Regional Hub Status

Nigeria plans to introduce an African depositary-receipt framework to encourage more cross-border listings and attract companies and investors from across the continent into its capital markets. The initiative is part of a broader strategy by the Securities and Exchange Commission to triple the size of the capital market to 750 trillion naira ($562 billion) over the next decade.

What the plan covers

The framework is designed to allow African companies and investors to participate more directly in Nigeria’s capital markets through depositary receipts. The SEC is positioning the plan as a way to deepen cross-border listings and draw continental attention to Nigeria’s market.

The SEC target

The depositary-receipt initiative sits inside the SEC’s wider goal of expanding the capital market to 750 trillion naira, or $562 billion, within ten years. That target amounts to tripling the market’s size over the period.

Why it matters

If delivered, the framework could give Nigerian investors access to more African issuers and give companies from other countries another route into Nigeria’s capital market. For the SEC, the bigger aim is regional-hub status: a market where African companies and investors can list, trade and raise funds. The plan is part of the regulator’s effort to scale the market, not a stand-alone product launch.