Nigeria bonds: Top issuers paid up to 20% to raise debt in H1 2026

Corporate borrowers and state-backed issuers paid as much as 20% to access Nigeria’s debt capital market in the first half of 2026, underscoring the elevated cost of long-term funding as high interest rates and persistent inflation continue to reshape the fixed-income landscape.

A review of bond listings on FMDQ Securities Exchange and the Nigerian Exchange (NGX) by Nairametrics shows that companies and government-backed entities tapped investors for hundreds of billions of naira to refinance existing obligations, finance infrastructure, strengthen liquidity, and fund expansion projects.

Coupon rates on fresh issuances ranged from 15.50% to 20.00%, highlighting the premium borrowers now pay to attract long-term capital across the banking, infrastructure, power, manufacturing, housing, and real estate sectors.

The pricing contrasts sharply with older bonds still trading in the market, many of which carry coupon rates below current benchmark yields after being issued during lower interest-rate cycles.

Among the largest issuers were NBET Finance Company Plc, Lagos State, Access Bank Plc, UAC of Nigeria Plc, NREIT, Sunbeth Global Concepts Limited, Daraju Industries Limited, Champion Breweries Plc, Paras Energy Funding SPV Plc, and Veritasi Homes & Properties Plc, reflecting strong demand for capital.

There are smaller scale issuers like TeleAfrica Communications, Accion Microfinance Bank, SKLD Integrated Services and others raising below N10 billion.

Here’s a breakdown of who raised what, and at what rate in the first half of 2026:

NBET Finance Company Plc (N501.02 billion, 17.50%):

The single largest bond listing of H1 2026 came from NBET Finance Company Plc, a special purpose vehicle backed by the Nigerian Bulk Electricity Trading Plc. It listed a combined N501.02 billion in Tranche A and Tranche B bonds at 17.50%, with proceeds meant to clear liquidity gaps across Nigeria’s power sector.

Access Bank Plc (N193.83 billion, 15.50%):

Access Bank remains the biggest corporate issuer from the banking sector, listing a N193.83 billion Series 3 Senior Unsecured Bond at 15.50%. This bond is still actively trading and provides investors a fixed-income option backed by one of Nigeria’s largest tier-one lenders.

Lagos State Government (N244.82 billion combined):

Lagos State raised a total of N244.82 billion through two bond series: a N230.00 billion 10-year bond at 16.25% and a N14.82 billion 5-year Green Bond at 16.00%. The Green Bond is one of the state’s first instruments tied strictly to sustainable projects, including clean transportation and climate resilience infrastructure.

UAC of Nigeria Plc (N54.03 billion, 17.35%):

UACN listed a 7-year N54.03 billion bond at 17.35% to refinance existing debt, fund capital projects, and support the integration of CHI Limited following its recent acquisition.

Sunbeth Global Concepts Limited (N150.41 billion, implied yields up to 23.50%):

Sunbeth Global Concepts quoted N150.41 billion in multi-series Commercial Papers under its issuance programme, with discount rates ranging from 19.00% to 19.30% and implied yields of between 21.00% and 23.50% across its 179-day, 270-day and 364-day tranches. The issuance provides the company with flexible short-term funding to support its working capital requirements and general corporate operations.

Daraju Industries Limited (N22.68 billion, two-series Commercial Papers):

Daraju Industries Limited quoted N22.68 billion in Series 31 and Series 32 Commercial Papers under its Commercial Paper Issuance Programme, raising short-term funding to support its working capital and general corporate financing needs. The discount rates, implied yields, and tenors for the two series were not disclosed in the FMDQ quotation announcement.

NREIT (N30.4 billion):

Nigeria Real Estate Investment Trust (NREIT) launched its Series 6 Offer, seeking to raise N30.4 billion by issuing 289.63 million units at N105 per unit under its N400 billion Issuance Programme.

NREIT is a Securities and Exchange Commission (SEC)-registered and Shariah-compliant real estate investment trust that acquires high-quality A-grade, income-producing commercial real estate assets in Nigeria targeting to deliver attractive risk-adjusted real estate returns to investors, including a quarterly cash distribution.

Champion Breweries Plc (N30.00 billion, 19.50%):

Champion Breweries priced its debut bond even higher, at 19.50% for a 5-year Senior Unsecured Fixed Rate Bond worth N30.00 billion, reflecting the premium investors demand from newer corporate issuers outside banking.

Paras Energy Funding SPV Plc (N15.00 billion, 18.00%):

Paras Energy Funding, tied to an independent power producer, listed a 5-year N15.00 billion bond at 18.00%, one of the highest rates recorded in H1, to fund power generation expansion and refinance existing obligations.

Veritasi Homes & Properties Plc (N10.00 billion, 20.00%):

Real estate developer Veritasi Homes carried the highest coupon among major H1 issuers at 20.00% for a 3-year N10.00 billion debut bond, funding ongoing housing projects including Oyster Towers.

Other notable commercial paper issuances:

DLM SPV Plc (N9.00 billion Medium-Term Notes):

DLM SPV listed a dual-tranche N9.00 billion Medium-Term Note backed by sovereign bonds, achieving AAA ratings from Global Credit Rating and DataPro. Tranche A priced at a premium of N112.14, which DLM described as the most valuable AAA corporate bond in Nigeria’s market.

• TeleAfrica Communications Limited quoted N3.31 billion.
• Accion Microfinance Bank Limited quoted N2.02 billion.
• SKLD Integrated Services Limited quoted N7.30 billion.
• Sycamore Integrated Solutions Limited quoted N6.89 billion.
• Miskay Boutique International Limited quoted N2.12 billion.

Which bonds are still trading, and at what rates for investors?

For income-focused investors, several older corporate bonds remain actively listed and tradeable on NGX and FMDQ alongside the fresh 2026 issuances, offering a spread of coupon rates to choose from:

• Access Bank 15.50% ACS Jul 2026 Bond — still trading with a coupon of 15.50%, maturing this July.
• MTN Nigeria Series I Bond — pays a fixed 13.00% coupon, one of the lower-yielding but highly liquid corporate names on the market.
• Dangote Cement Series I Tranche C — offers 13.50%.
• Dangote Cement Series I Tranche B — offers a lower 12.50%, reflecting its earlier pricing window.
• AXA Mansard Bond — trades at 14.30%.
• Interswitch Africa 15.00% Bond — matures October 2026, offering investors a 15.00% coupon.

These older bonds generally carry lower coupons than fresh 2026 issuances, a reflection of when they were priced relative to Nigeria’s interest rate environment at the time. Investors seeking higher yields have gravitated toward newer issuances like Veritasi Homes (20.00%) and Champion Breweries (19.50%), though these typically come with higher risk premiums attached to less established or first-time issuers.

What you should know:

Commercial papers, being short-term instruments, do not always carry publicly disclosed fixed coupons the way long-dated bonds do, which is why several CP issuers above are not listed with a specific rate.

• Several bonds issued in H1 2026 carry maturities stretching into 2028, 2029, and 2030, including new issues from UAC of Nigeria, Access Bank, Lagos State, and Fidelity Bank.
• The spread in coupon rates, from 12.50% on older Dangote Cement tranches to 20.00% on Veritasi Homes’ debut bond, shows how credit rating, sector, and issuer track record continue to shape borrowing costs on Nigeria’s debt capital markets.

The H1 2026 bond issuances show sustained appetite from both government and corporate borrowers to tap long-term capital, even as elevated interest rates keep coupon costs high across new issuances, while older, lower-coupon bonds remain available to investors seeking steadier, if more modest, fixed income.