Nigeria Raises N753bn In Commercial Paper As Investor Confidence Strengthens — SEC

Nigeria’s capital market raised more than N753bn through commercial paper issuances between April and October 2025, reflecting growing investor confidence and the resilience of the market, the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has said.

Agama disclosed this in an interview, noting that the funds were mobilised to meet short-term financing needs across critical sectors of the economy, including manufacturing, energy and agriculture.

According to him, the strong performance of the commercial paper segment formed part of broader capital-raising activities approved by the Commission during the review period.

“Commercial paper issuance remained vibrant, with over N753bn raised to support short-term funding needs across diverse sectors,” he said.

Beyond commercial paper, the SEC chief said the debt capital market recorded landmark transactions, pointing to the N500bn Climate Funding Special Purpose Vehicle and the N200bn Elektron Finance bond issuance. He said these deals underscored increasing investor appetite for infrastructure development 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 said, adding that the Commission approved significant transactions across debt, equity and short-term instruments between April and October 2025.

He explained that the capital market’s performance aligned with recent improvements in Nigeria’s macroeconomic outlook, including the country’s sovereign credit rating upgrade and its removal from the Financial Action Task Force (FATF) grey list.

According to him, these developments have reinforced investor confidence and are expected to attract increased capital inflows.

Agama also said easing inflationary pressures had created opportunities for innovation within the market, urging operators to move beyond policy formulation to the execution of new products and platforms that meet evolving investor needs.

“This is a call to action for market operators. Innovation cannot remain on paper. We must translate these frameworks into real products and accessible platforms,” he said.

Commenting on recent market volatility, the SEC Director-General acknowledged the sharp downturn recorded in November, when the Nigerian Exchange lost about N6.54trn in market capitalisation. He attributed the decline to profit-taking ahead of the proposed 30 per cent capital gains tax, weak sentiment in banking stocks and global economic uncertainties.

However, he said the market rebounded following policy reassurances, stressing that despite the November setback, the Exchange remained significantly positive year-to-date, reflecting the underlying strength of the market.

Agama further highlighted ongoing market reforms, including the migration of the equities settlement cycle from T+3 to T+2, which he described as a major step in line with global best practices. He said the shorter settlement period would enhance liquidity, reduce counterparty risk and accelerate capital reinvestment.

The SEC chief added that the Commission plans to transition to T+1 and eventually T+0 settlement, alongside efforts to deepen commodity trading and expand bond market participation, to position Nigeria as a leading investment destination in Africa and a catalyst for sustainable economic growth.