Over N753 billion was raised by corporations between April and October 2025 to meet short-term financing needs across key sectors of the economy.
Commercial paper is a short-term, unsecured promissory note issued by large corporations to raise funds for working capital and operational needs.
The instruments typically mature within a few days to one year, and are widely used by companies seeking quick and relatively low-cost financing.
A statement issued by the Securities and Exchange Commission (SEC) on Sunday quoted its Director General, Dr. Emomotimi Agama, as saying that the impressive performance of the commercial paper market reflected sustained activity across manufacturing, energy, agriculture, and other productive sectors.
“Commercial paper issuance remained vibrant, with over N753 billion raised to support short-term funding needs across diverse sectors, from manufacturing to energy and agriculture,” Agama said.
He explained that the strong activity in the segment formed part of a broader pipeline of capital-raising transactions approved by the Commission across debt, equity, and short-term instruments within the review period.
According to him, “the Nigerian capital market has demonstrated remarkable depth and adaptability. Between April and October 2025, the Commission approved significant transactions across debt, equity, and commercial paper segments, showing the market’s capacity to mobilize capital for growth. These achievements are essential as we work to position the Nigerian capital market as a catalyst for sustainable economic growth.”
Agama stated that the debt capital market also saw major deals during the period, including the N500 billion Climate Funding Special Purpose Vehicle issuance and the N200 billion Elektron Finance bond transaction, which he said reflected growing interest in infrastructure-related and sustainable finance instruments.
“These figures are not just numbers; they represent confidence in our regulatory framework and the resilience of our market architecture,” the SEC boss said.
He noted that recent macroeconomic developments have contributed to improving investor sentiment, citing Nigeria’s sovereign credit rating upgrade and the country’s removal from the Financial Action Task Force (FATF) grey list as important signals to domestic and international investors.
“These achievements are not mere milestones; they signal renewed confidence in our economy. They will attract greater investment and enhance capital inflows, reinforcing the stability and growth prospects of our financial markets,” he said.
On inflation dynamics, Agama noted that easing price pressures were creating room for more innovation within the capital market, calling on operators to move decisively in developing new products and platforms.
“This is a call to action for market operators. Innovation cannot remain on paper. We must translate these frameworks into real products and accessible platforms that meet the needs of today’s investors,” he said, adding that “The time for passive observation is over. Our collective responsibility is to activate these opportunities and position the Nigerian capital market as a true engine of inclusive growth.”
The SEC Director General also addressed the sharp downturn recorded in November, when the Nigerian Exchange lost about N6.54 trillion in market capitalisation. He attributed the development to profit-taking activities ahead of the proposed 30 per cent Capital Gains Tax, weak sentiment in banking stocks, and global economic uncertainties.
However, he noted that the market has since recovered, following policy assurances and improved investor outlook. “Importantly, despite November’s volatility, the Exchange remains significantly positive year-to-date, with strong gains that reflect the underlying robustness of our market,” he said.
Agama further drew attention to ongoing structural reforms in the market infrastructure, including the recent migration of the equities settlement cycle from T+3 to T+2.
“By shortening the settlement period, we have enhanced liquidity, reduced counterparty risk, and accelerated the reinvestment of capital,” he said, adding that the Commission is already working toward transitioning to T+1 and eventually T+0.
He stated that these reforms, alongside efforts to deepen commodity trading and expand bond market participation, are expected to strengthen Nigeria’s position as a leading investment destination on the African continent.
“These changes, combined with ongoing efforts to deepen commodity trading and expand bond market participation, will position Nigeria as a leading investment destination in Africa,” Agama said.
