Commercial paper drove Nigeria’s capital market in 2025, raising over ₦753 billion between April and October.
These short-term debt instruments allowed companies across manufacturing, agriculture, energy, and other sectors to access quick funds for working capital, boosting economic activity.
₦753 Billion Raised Via Commercial Paper
Consequently, investors eagerly embraced commercial papers, reflecting growing confidence in regulatory reforms and the resilience of Nigeria’s financial system.
SEC Director-General Dr Emomotimi Agama described the CP market as “one of the most vibrant areas of the market,” underlining its essential role in supporting economic growth.
Landmark Debt Deals
In addition to commercial papers, landmark debt transactions captured attention.
Companies issued the ₦500 billion Climate Funding SPV and the ₦200 billion Elektron Finance bond, demonstrating rising interest in infrastructure-linked and sustainable finance.
“These figures are more than numbers; they reflect trust in our market framework,” Agama emphasised.
By December, investors pushed Nigeria’s total market capitalisation close to ₦150 trillion, signalling historic growth.
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Equities contributed 65% of total value, while the NGX All-Share Index achieved a 49.17% year-to-date gain.
Domestic retail and institutional investors further increased turnover, seeking higher yields amid easing inflation and tight monetary conditions.
Market Resilience
However, November brought a sharp ₦6.54 trillion decline, caused by proposed taxes, weak banking stock sentiment, and global uncertainties.
Policymakers quickly reassured investors, prompting a swift market rebound.
Furthermore, the T+3 to T+2 equity settlement reform improved liquidity and reduced counterparty risks, with T+1 and T+0 plans already in motion.
Finally, macroeconomic tailwinds—including Nigeria’s credit rating upgrade and FATF grey list removal—strengthened investor sentiment.
Overall, commercial paper, major debt issuances, and ongoing reforms actively positioned Nigeria as a dynamic and attractive investment destination in Africa.
