FMDQ: Outstanding corporate bonds hit N2.30 trillion in June 2026

Outstanding corporate bond value on FMDQ Exchange rose to N2.30 trillion in June 2026, up marginally from N2.29 trillion in May, retaining its position as the largest single segment of admitted non-sovereign securities on the Exchange.

This is according to FMDQ Exchange’s latest fixed income market report, which shows corporate bonds continuing to anchor Nigeria’s debt capital market even as new issuance activity slowed sharply during the month.

The Commercial Paper segment showed signs of recovery a sharp and steady decline that started in November 2025 (N 877.41 billion) and worsened in April (N319.51 billion) before rising in May (N 448.88 billion) and June (N 465.34 billion).

What the data is saying:

Corporate bonds remain the dominant segment of FMDQ as the values have climbed steadily over the past few months.

• The values jumped from N1.81 trillion in March 2026 to N2.34 trillion in April, the highest level recorded in the period, following a wave of new issuances.
• Values have held broadly around that range since, easing only slightly to N2.30 trillion by June.
• New corporate bond listings stood at N15.00 billion in June; a rebound from zero issuance recorded in May.
• This, however, is a fraction of April 2026’s N531.89 billion in new corporate bond listings, by far the strongest issuance month in the period reviewed.

Other notable issuance months included January 2026 (N63.03 billion), while corporate bond issuance stayed inactive in February 2026. The lowest outstanding corporate bond value in the six-month period ended June 30, 2026, was N 1.78 trillion recorded in February 2026.

More insights:

Commercial papers (CPs), while smaller in scale, tell a story of renewed activity. Outstanding CP value rose to N465.34 billion in June, up N16.46 billion from N448.88 billion in May, extending a recovery from an April 2026 low of N319.51 billion.

• Outstanding CP value had peaked at N1.54 trillion in July 2025 before a steady decline through to April 2026.
• New CP listings, however, fell sharply to N36.79 billion in June, down N152.36 billion from May’s N189.15 billion, marking one of the weakest issuance months on record.
• The weakest CP issuance month was April 2026 at N10.00 billion.
• The average tenor for quoted CPs lengthened to 290 days in June from 277 days in May, as issuers and investors continued to favour medium-to-longer maturities.
• Tenors had peaked at 364 days in April 2026.

Subnational bonds remained the outlier, with outstanding value unchanged at N661.06 billion since February 2026, when Lagos State’s N244.82 billion dual bond issuance lifted the segment from N416.25 billion. No new subnational bond issuance has been recorded since.

Rates eased across the board:

Financing costs for issuers continued their gradual decline in June. The average discount rate for quoted CPs fell to 19.18%, down from 19.78% in May, a 0.60 percentage point decline that extends a broader easing trend from a high of 22.49% in June 2025.

• The 91–180 day CP segment eased to 19.44% in June from 20.11% in May.
• The 181–364 day CP segment declined to 19.11% from 19.69% over the same period.
• Local Currency Corporate Bonds with 5–10 year tenors carried an average rate of 18.00% in June, below prevailing CP rates, reflecting the typically lower cost of longer-dated, better-rated instruments relative to short-term paper.
• Discount rates had briefly ticked up to 20.65% in April 2026 before resuming their downward trend through May and June, and the period low was 18.81%, recorded in February 2026.

On sectoral allocation, Telecommunications accounted for 60.00% of quoted CP activity in June, while Financial Services and Health & Pharma each contributed 20.00%.

What you should know:

Corporate bonds’ outstanding value of N2.30 trillion is nearly five times the size of the CP market, underscoring their role as the primary vehicle for long-term corporate financing on FMDQ Exchange.

• Nigeria’s debt capital market has remained resilient in 2026 despite elevated interest rates, with FMDQ Exchange reporting record turnover of N249.18 trillion between January and April as investors continued to favour fixed-income instruments.
• Corporate bond issuance also accelerated in H1, led by landmark deals from NBET Finance, Access Bank, Lagos State and UAC of Nigeria, reflecting sustained appetite for long-term funding despite higher borrowing costs.
• The easing commercial paper discount rates suggest funding conditions are gradually improving, even as issuers continue to pay historically high coupons to access capital.

The combination of a slower June for new issuances across both CPs and corporate bonds, alongside declining discount rates, suggests improving financing conditions. It could also reflect either seasonal financing patterns or reduced short-term funding needs among corporates.

The steady recovery in outstanding CP value, despite weak new listings, points to underlying investor demand for short-term paper remaining intact, suggesting potential pickup in fresh CP issuance in the coming months.