Nigeria plans to introduce an African depositary-receipt framework to attract foreign companies and investors, seeking to turn its capital markets into a regional financing hub under a strategy targeting ₦750 trillion in market size over the next decade.
The Securities and Exchange Commission’s proposals include streamlined approvals, introductory listing-fee incentives, cross-border settlement and custody links, and tax neutrality.
The regulator also plans rules for foreign issuers seeking Nigerian listings and broader opportunities for Nigerian companies to list elsewhere in Africa.
The initiative forms part of Capital Market Masterplan 2.0, launched Oct. 19 and covering 2026–2036. Its ambitions include increasing annual diaspora investment through capital markets to $10 billion from $4 billion and expanding collective investment scheme assets tenfold to $56 billion.
A depositary receipt is a tradable instrument representing underlying securities held through a custody structure. It can allow investors to gain exposure to a foreign company through an approved local-market channel.
Nigeria’s proposed framework is intended to make those arrangements easier to establish across participating markets.
Dangote Provides a Test Case
Dangote Petroleum Refinery and Petrochemicals’ IPO offers an early example of the demand such structures could serve.
The company is using global depositary receipts to reach a wider African investor base and extended its offer deadline to Oct. 27 to facilitate participation from additional jurisdictions.
Kenya provides a concrete example. Its Capital Markets Authority approved a short-form prospectus submitted by Renaissance Capital Kenya on Oct. 5, allowing eligible Kenyan investors to participate through global depositary receipts.
The SEC also plans to modernize listing rules to accommodate dual- and multi-class share structures and differentiated free-float thresholds. The proposed tiered regime would apply proportionate requirements while seeking to preserve founder control, liquidity and investor protection.
The regulator also intends to benchmark issuance and listing costs against Kenya, South Africa, Egypt and Morocco.
 Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
