Commercial paper (CP) programmes approved by the Securities and Exchange Commission reached a combined limit of ₦1.37 trillion as at 23 October 2025, highlighting growing reliance on short‑term debt by Nigerian corporates facing tight bank credit.
Nigeria commercial paper market shows cautious but growing use
Despite the large approved envelope, actual drawdowns were substantially lower. The Commission’s data show issuers raised about ₦753 billion across several series and tranches, implying a utilisation rate close to 54 per cent. The gap between approvals and takings suggests issuers are drawing in phases rather than exhausting programme limits in a single issuance.
Issuance was heavily concentrated among a handful of major firms. Dangote Sugar Refinery Plc led activity, operating under a ₦300 billion programme and accounting for more than 45 per cent of total CP issuance. The company issued repeatedly from Series 10 to Series 16, with individual tranches ranging from ₦4.7 billion to ₦96.7 billion, collectively exceeding ₦300 billion.
Away from Dangote Sugar, other notable issuers included Johnvents Industries Limited, which raised about ₦52.6 billion from a ₦100 billion programme, and UAC Nigeria Plc, which issued ₦45 billion under a ₦65 billion approval. In the financial sector, Citibank Nigeria Limited ran a ₦300 billion programme but drew only ₦26.7 billion across two series, reflecting a measured use of its facility.
Financial services firms, agribusinesses and mid‑sized corporates also deepened participation. Payaza Africa Limited raised nearly ₦43 billion from its ₦50 billion programme, Golden Fertilizer issued ₦20 billion under a ₦40 billion approval, and Skymark Partners Limited raised just over ₦11 billion. Smaller contributions from breweries, agro firms and special‑purpose vehicles added steady volume.
Analysts point to the high benchmark Monetary Policy Rate of 27 per cent as a key driver of the shift towards commercial papers. With banks pricing loans above the policy rate to cover risk and operating costs, effective lending rates remain steep for many corporates. For firms with strong credit profiles, CPs can offer cheaper and more flexible short‑term funding compared with bank loans.
Maturities were largely clustered between December 2025 and mid‑2026, underscoring the role of CPs as liquidity tools rather than replacements for long‑term financing. The pattern of phased drawdowns and concentrated issuance among large, cash‑intensive firms points to a market that is maturing but remains cautious.
Market watchers note a sizeable pipeline of approved but undrawn programmes, indicating issuance could stay elevated into 2026 if interest rates remain high and long‑term credit access stays constrained. For corporates managing working capital and short‑term obligations, the Nigeria commercial paper market looks set to remain an important funding channel in the near term.
Key Takeaways:
- Nigeria commercial paper market saw SEC approvals rise to ₦1.37tn by 23 October 2025, with actual drawdowns at ₦753bn (about 54% utilisation).
- Issuance concentrated among a few large corporates, led by Dangote Sugar Refinery which accounted for over 45% of issuance.
- High policy rates (MPR 27%) and tight bank credit are driving firms towards short-term CP funding, with maturities clustered Dec 2025–mid‑2026.
- Market watchers expect continued issuance into 2026 as firms phase drawdowns and seek liquidity solutions.
