N753bn commercial paper issuance signals strong investor confidence – SEC DG

Nigeria’s capital market mobilised more than N753 billion through commercial paper issuances between April and October 2025, highlighting renewed investor confidence and the growing resilience of the nation’s financial markets.

In a statement by the Commission, the Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, said the vibrant performance of the commercial paper segment provided critical short-term financing to key sectors of the economy, including manufacturing, energy and agriculture.

“Commercial paper issuance remained vibrant, with over 753 billion raised to support short-term funding needs across diverse sectors,” the SEC boss said, describing the figures as evidence of trust in Nigeria’s regulatory framework and market structure.

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Beyond commercial paper, Agama revealed that the debt capital market recorded landmark transactions during the period, citing the N500 billion Climate Funding Special Purpose Vehicle and the 200 billion Elektron Finance bond issuance as signs of rising appetite for infrastructure and sustainable finance investments.

“These figures are not just numbers; they represent confidence in our regulatory framework and the resilience of our market architecture,” he stressed.

According to him, the robust showing in the commercial paper space formed part of broader capital-raising activities approved by the Commission across debt, equity and short-term instruments, underscoring the Nigerian capital market’s ability to mobilise capital for economic growth.

“Since our last meeting, the Nigerian capital market has demonstrated remarkable depth and adaptability. Between April and October 2025, the Commission approved significant transactions across debt, equity and commercial paper segments,” Agama said, adding that these achievements were crucial to positioning the market as a catalyst for sustainable economic growth.

The SEC Director General also pointed to recent macroeconomic improvements, including Nigeria’s sovereign credit rating upgrade and the country’s removal from the Financial Action Task Force (FATF) grey list, describing them as powerful signals of renewed investor confidence.

“These achievements are not mere milestones; they signal renewed confidence in our economy. They will attract greater investment and enhance capital inflows,” he said.
On inflation, Agama noted that easing price pressures had created fresh opportunities for innovation in the capital market, urging operators to move decisively from policy formulation to execution.

“Innovation cannot remain on paper. We must translate these frameworks into real products and accessible platforms that meet the needs of today’s investors,” he said, warning that “the time for passive observation is over.”

While acknowledging the sharp downturn recorded in November, when the Nigerian Exchange lost about N6.54 trillion in market capitalisation, Agama attributed the slide to profit-taking ahead of the proposed 30 per cent Capital Gains Tax, weak sentiment in banking stocks and global uncertainties. He, however, noted that the market rebounded following policy reassurances.

“Importantly, despite November’s volatility, the Exchange remains significantly positive year-to-date, with strong gains that reflect the underlying robustness of our market,” he said.

Agama further highlighted the migration of the equities settlement cycle from T+3 to T+2, describing it as a major reform aligned with global best practices. According to him, the change has improved liquidity, reduced counterparty risk and accelerated capital reinvestment.

“We plan to move to T+1 and ultimately T+0,” he said, adding that ongoing efforts to deepen commodity trading and expand bond market participation would position Nigeria as a leading investment destination in Africa.”