Nigeria’s capital market attracted more than N753 billion in commercial paper (CP) issuances between April and October 2025, the Securities and Exchange Commission (SEC) has disclosed.
According to the capital market regulator, this reflects deepening liquidity, strong investor appetite and renewed confidence in regulatory reforms which the commission said boosted activities in the commercial paper space.
In a release on Sunday, December 28, SEC Director-General, Dr. Emomotimi Agama, among other things, explained the factors that strengthened investor sentiment in the market during the year.
What the SEC is saying:
Agama said the CP market remained one of the most vibrant segments of the market during the review period, supporting short-term financing needs across manufacturing, agriculture, energy and other critical sectors.
“Commercial paper issuance remained vibrant, with over N753 billion raised to support short-term funding needs across diverse sectors,” he noted.
The SEC DG added that the broader debt market also recorded landmark transactions, including the N500 billion Climate Funding SPV and the N200 billion Elektron Finance bond issuance.
These, he said, reflect increasing appetite for infrastructure-linked and sustainable finance instruments.
“These figures are not just numbers; they represent confidence in our regulatory framework and the resilience of our market architecture,” Agama stressed.
He explained that the CP performance forms part of wider capital-raising activities approved by the Commission across debt, equity and hybrid instruments during the period.
Between April and October, the market “demonstrated remarkable depth and adaptability,” recording significant transactions that reinforced its role in mobilising capital for economic expansion.
Agama also highlighted macroeconomic tailwinds—Nigeria’s recent sovereign credit rating upgrade and the country’s removal from the FATF grey list—as supportive indicators that have strengthened investor sentiment.
“These achievements… signal renewed confidence in our economy. They will attract greater investment and enhance capital inflows,” he said.
Monetary conditions:
On monetary conditions, the SEC boss said easing inflationary pressures have created room for market innovation, urging operators to move from policy articulation to execution.
“The time for passive observation is over. Our collective responsibility is to activate opportunities and position the market as an engine of inclusive growth,” he said.
Responding to the sharp downturn in November—when the Nigerian Exchange lost about N6.54 trillion in market capitalisation Agama attributed the slump to profit-taking ahead of the proposed 30% Capital Gains Tax, weak banking stock sentiment and global uncertainties. He said the market has since rebounded on policy assurances.
He also described the migration of the equity’s settlement cycle from T+3 to T+2 as a landmark reform that has enhanced liquidity and reduced counterparty risk, with plans already in motion to move to T+1 and ultimately T+0.
What you should know
Commercial paper is a short-term, unsecured debt instrument issued by companies to raise quick funds for working capital needs, typically with maturities of 270 days or less. According to SEC, companies raised a total of N753 billion during the review period.
- It is worthy of note that Nigeria’s capital market is closing 2025 on a historic high, with total market capitalization hitting N149.88 trillion as of December 24 just shy of the N150 trillion mark for the first time.
- The growth reflects strong performance across equities, bonds (debt instruments), and ETPs, supported by sustained reforms, high domestic investor participation, and solid corporate actions.
- Equities dominated the market, contributing N97.89 trillion or 65% of total value, while bonds added N51.55 trillion and ETPs recorded N43.20 billion.
The NGX All-Share Index delivered a robust 49.17% year-to-date gain, positioning the exchange among Africa’s top performers. Turnover more than doubled, fuelled mainly by domestic retail and institutional investors seeking higher yields amid tight monetary conditions.
The SEC believes the strong commercial paper market, major debt issuances, improved macroeconomic indicators and ongoing market reforms—including the T+2 settlement cycle—are collectively positioning Nigeria as a top investment destination in Africa.
