Nigerian Firms Raise N1.3 Trillion via Commercial Papers

In the first nine months of 2026, Nigerian companies raised more than N1.3 trillion through commercial papers, responding to bank lending rates exceeding 30%, which have intensified pressure on working capital and profitability. This trend reflects the challenges businesses face in accessing affordable credit, despite the Central Bank of Nigeria's reduction of the benchmark Monetary Policy Rate from 26.5% to 23% in September.

Commercial papers, which allow companies to secure short-term funding without collateral, are increasingly being utilized to bridge liquidity gaps and finance operational expenses. As of August 2026, outstanding commercial papers totaled N501.13 billion, with an average tenor of 272 days and an average discount rate of 19.29%.

In the third quarter, 23 companies targeted N446.1 billion through 43 series. Notable issuers include Dangote Cement Plc, which raised N119.87 billion in February 2026, and CapitalSage Technology Limited, which secured N45.12 billion in October.

Other active issuers include Sunbeth Global Concepts Limited, NGN Gram Limited, Coleman Technical Industries, and Agrico Africa Plc.