• Nigeria commercial paper issuances surge, exceeding 1.5 trillion naira in 2025

• SEC cites strong liquidity, investor appetite and reform-driven confidence

• Capital market capitalization nears record 150 trillion naira

Nigeria’s market for short-term corporate debt has accelerated sharply this year, with more than 753 billion naira ($519 million) raised through commercial paper issuances between April and October, the Securities and Exchange Commission (SEC) said.

From January to July alone, issuances reached 1.58 trillion naira, up 107% from 763.4 billion naira in the same period last year, according to the regulator, underscoring growing corporate reliance on the instrument.

Commercial paper is short-term, unsecured debt used by companies to quickly raise funds, typically with maturities of less than 270 days.

The SEC said the strong performance reflects improved market liquidity, sustained investor appetite and rising confidence in reforms implemented in recent years. SEC Director General Emomotimi Agama said the commercial paper market remains “one of the most dynamic segments,” supporting short-term funding needs in sectors such as manufacturing, agriculture and energy.

Strong growth in the segment has helped push the total capitalization of Nigeria’s capital market to a record level, approaching 150 trillion naira, the regulator said.

Beyond commercial paper, the SEC noted that Nigeria’s bond market recorded several major transactions in 2025, including a 500-billion-naira climate finance vehicle and a 200-billion-naira bond issuance by Elektron Finance. The deals reflect growing investor interest in infrastructure and sustainable finance, it said.

The renewed confidence comes amid a more favorable macroeconomic environment, marked by an upgrade to Nigeria’s sovereign credit rating and the country’s removal from the Financial Action Task Force’s (FATF) “grey list,” both seen as positive signals for financial markets.

Asked about volatility in November, when the Nigerian stock exchange lost trillions of naira in market value, Agama cited profit-taking, uncertainty surrounding a proposed capital gains tax increase and international factors. He said the market has since begun to rebound, supported by policy clarifications.

The SEC also highlighted reforms to the settlement cycle, recently shortened from T+3 to T+2 to improve liquidity and reduce risk. Further reductions are planned, with a longer-term goal of T+1 or real-time settlement.