In October 2025, the SEC approved commercial papers (CPs) programmes worth ₦1.37 trillion.
However, corporates drew only about ₦753 billion, revealing a cautious, phased approach to short-term borrowing.
Dangote Sugar Leads Market
Among all issuers, Dangote Sugar Refinery Plc led the market, raising over ₦300 billion across multiple tranches.
Consequently, it demonstrated how large companies actively rely on CPs for working capital and refinancing.
Meanwhile, Johnvents Industries issued ₦52.6 billion, and UAC Nigeria raised ₦45 billion from their programmes.
In contrast, Citibank Nigeria Limited tapped only ₦26.7 billion despite a massive ₦300 billion approval.
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At the same time, mid-sized firms and fintechs deepened their participation.
For example, Payaza Africa raised ₦43 billion, and Golden Fertilizer issued ₦20 billion.
Similarly, Skymark Partners issued just over ₦11 billion, while other smaller companies contributed consistent, though modest, volumes.
Commercial Papers Offer Cheaper Funding
High commercial bank rates, driven by the 27% Monetary Policy Rate, prompted corporates to turn toward CPs as cheaper alternatives.
Moreover, most issuances matured between December 2025 and mid-2026, confirming that companies used CPs for short-term liquidity rather than long-term financing.
Analysts note that the strong pipeline of approved but undrawn programmes could maintain high CP activity well into 2026.
Overall, Nigeria’s CP market is maturing rapidly.
Large and mid-sized corporates now actively use commercial papers strategically and in phases.
Therefore, CPs have become essential tools for navigating a high-cost lending environment.
