2025-12-29 09:00:00
Reporting by The Nation indicates Nigeria’s capital-market regulator says companies raised over ₦753bn through commercial paper issuance within months, pointing to renewed appetite for short-term, non-bank funding as businesses cover working-capital needs.
Commercial paper has increasingly become a bridge instrument for corporates facing tight credit conditions, higher borrowing costs and volatile cashflows, especially in manufacturing and supply chains.
SEC leadership has tied the momentum to broader market-structure reforms, arguing that faster settlement and deeper participation can improve liquidity and reduce risk for investors.
In effect, the regulator is projecting the surge as evidence of confidence in market plumbing and regulation, even as macro pressures remain.
The Whistler quoted the SEC DG saying, “Commercial paper issuance remained vibrant, with over N753bn raised…,” while The Guardian quoted him on settlement reforms: “By shortening the settlement period, we have enhanced liquidity….”
Echotitbits take: The key watch item is pricing and rollover risk. If firms keep issuing at very high yields, the market may be masking stress rather than solving it. Watch for defaults, delayed redemptions, and whether issuers shift to longer-dated bonds.
Source: BusinessDay — https://businessday.ng/markets/article/nigeria-records-over-n753bn-commercial-paper-issuances-in-6-months/?amp – December 29, 2025
BusinessDay 2025-12-29
Photo Credit: BusinessDay
