Nigeria’s commercial paper market has grown to over N1.9tn, with the Securities and Exchange Commission seeking to position the short-term debt market as a pipeline for companies looking to raise capital through public offerings.
The SEC Director-General, Emomotimi Agama, disclosed this on the Duke in Business podcast, noting that the market was expanding rapidly as more companies turned to commercial paper to meet their short-term financing needs.
According to Nairametrics Research, 23 companies launched commercial paper offers in Nigeria’s money market in the third quarter of 2026, seeking to raise a combined N446.1bn through 43 series under programmes with a total registered value of N1.98tn.
Agama described the market’s growth as “unbelievable”, highlighting its potential to serve as a stepping stone for companies seeking to participate more broadly in Nigeria’s capital market.
“We have instituted the market, which is called the commercial paper market. The commercial paper market is growing at a speed that is unbelievable. As we speak today, the commercial paper market is over 1.9 trillion,” he said.
Agama acknowledged that companies issuing commercial paper are not necessarily listed on the stock exchange but said participation in the market could position them for future public offerings.
He described the market as a stepping stone, allowing companies to gain experience in capital raising and become familiar with regulatory requirements and investor expectations ahead of entering the broader capital market.
“It brings something we call encouragement. And of course, we are leading them towards IPO. So it becomes a pipeline,” he said.
According to the SEC chief, the commission is encouraging companies with sound corporate structures, strong governance practices, audited financial statements and transparent operations to access the market.
He said the experience gained from issuing commercial paper could prepare these businesses for future initial public offerings, expanding the pool of companies available to investors.
