Nigeria’s capital market recorded over ₦753 billion in commercial paper issuances between April and October 2025, according to the Securities and Exchange Commission.

The regulator said the surge highlights improved liquidity, robust investor demand and growing confidence driven by recent regulatory reforms, which have reinvigorated activity in the commercial paper segment.

In a statement released on Sunday, December 28, SEC Director-General, Dr Emomotimi Agama, outlined key factors that bolstered investor confidence in the market over the year.

Agama said the commercial paper market was among the most active segments during the period under review, providing vital short-term financing for companies in manufacturing, agriculture, energy and other key sectors of the economy.

“Commercial paper issuance remained vibrant, with over N753 billion raised to support short-term funding needs across diverse sectors,” he stated.

The SEC Director-General added that the wider debt market witnessed landmark deals, including the ₦500 billion Climate Funding SPV and the ₦200 billion Elektron Finance bond issuance.

According to him, the transactions underscore growing investor appetite for infrastructure-backed 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 noted.

He said the strong performance of the commercial paper segment was part of broader capital-raising activities approved by the Commission across debt, equity and hybrid instruments during the period.

Between April and October, the market “demonstrated remarkable depth and adaptability,” posting major transactions that underscored its role in mobilising capital for economic growth.

Agama also pointed to favourable macroeconomic developments—including Nigeria’s recent sovereign credit rating upgrade and its removal from the FATF grey list—as key factors that boosted investor confidence.

“These achievements… signal renewed confidence in our economy. They will attract greater investment and enhance capital inflows,” he added.

The SEC Director-General noted that moderating inflation has created scope for greater market innovation, calling on operators to move beyond policy statements to concrete implementation.

Commercial paper is a short-term, unsecured debt instrument used by companies to raise quick funding for working capital, usually with maturities of 270 days or less. The SEC said firms raised a total of ₦753 billion through this instrument during the review period.

Meanwhile, Nigeria’s capital market is ending 2025 on a historic note, with total market capitalisation reaching ₦149.88 trillion as of December 24, just short of the ₦150 trillion milestone for the first time.