The right way to earn cash investing on Nigerian industrial papers

Investing in industrial paper (CP) has develop into some of the enticing fixed-income choices for Nigerian traders in 2025.

With the Financial Coverage Fee (MPR) staying elevated, yields on CPs stay excessive, giving traders higher risk-adjusted returns in comparison with many different asset courses.

The minimal subscription is N5 million and N1,000 thereafter, with curiosity or low cost revenue topic to 10% withholding tax.

Most CPs are issued in 180-day and 270-day tenors (there are some with 90-day or 360-day), although some carry slight variations in days, about 5 days roughly. Traders who select to carry their funding till maturity earn returns based mostly on the implied yield, whereas those that choose to take their returns upfront subscribe at a reduced charge.

Between June and July 2025, corporates throughout banking, manufacturing, industrial items, healthcare, and client items tapped the market, providing traders double-digit yields.

Cutix Plc led the market with the best 270-day implied yield at 28.5%, adopted by SKLD at 27.5% whereas SKLD led the market with the best 180-day implied yield at 24.65%, adopted by Daraju at 24.50%.

This text breaks down a number of the notable CPs issued in June and July 2025, highlighting the money returns, implied yields, and low cost charges for 180-day and 270-day tenors.

Understanding the yield dynamics

Industrial papers are sometimes bought at a reduction, which means traders pay lower than the face worth upfront and obtain the total worth at maturity. Nonetheless, relying on investor desire:

Discounted Fee: Traders can take their returns upfront by subscribing at a decrease entry price, with the low cost charge figuring out their efficient revenue.
Implied Yield: Traders preferring to carry until maturity obtain returns based mostly on the implied yield, which compounds over the tenor of the funding.
Money Return: The precise naira quantity earned by the investor at maturity.
Brokerage Charges: Not included on this evaluation. Some brokers cost as much as 10%.

Beneath is a breakdown of how a lot an investor with N5 million would earn throughout these issuances in June and July 2025.

Industrial papers out there available in the market in June and July 2025 by implied yield

Word that the money returns are gross with out deduction of withholding tax and brokerage charges. Money returns are computed with solely implied yield and 360 days to prorate for a full yr.

Whereas the minimal subscription for industrial papers is N5 million, this text will illustrate returns utilizing N1 million, since some stockbrokers and fintech platforms enable traders to take part by means of pooled investments

Cutix Plc – Focused increase: N20bn

Provide opened Could 30 and closed June 17, 2025, to assist short-term funding necessities. Rated A1 (DataPro).

270-day CP at 28.5000%: N 213,750.00 return on N1 million.

SKLD Built-in Providers Restricted – Focused increase: N1.4bn

Provide opened June 10 and closed June 17, 2025, to fund short-term working capital wants. Rated A1 (DataPro).

180-day CP at 24.6500%: N123,250.00 return on N1 million.
270-day CP at 27.5000%: N204,722.22 return on N1 million.

Champions Breweries Plc – Focused increase: N10bn

Provide opened June 27 and closed July 4, 2025, to assist short-term working capital wants. Rated BBB+ (GCR) and BBB (Augusto).

176-day CP at 23.50%: N114,888.89 return on N1 million.
268-day CP at 26.0001%: N193,556.30 return on N1 million.

Johnvents Industries Restricted – Focused increase: N40bn

Provide opened June 30 and closed July 4, 2025, to assist short-term working capital necessities. Rated BBB+ (GCR, DataPro, and Augusto).

182-day CP at 24.2501%: N122,597.22 return on N1 million.
270-day CP at 26.75%: N200,625.00 return on N1 million.

Mecure Industries Plc – Focused increase: N10bn

Provide opened June 26 and closed July 2, 2025, to assist short-term working capital and funding necessities. Rated A1 (DataPro) and A2 (GCR).

266-day CP at 26.00%: N192,111.11 return on N1 million.

FCMB Plc – Focused increase: N70bn

Provide opened Could 27 and closed June 3, 2025, to fund short-term working capital wants. Rated A2 (GCR) and A- (Augusto).

180-day CP at 23.00%: N115,000.00 return on N1 million.
268-day CP at 24.7500%: N184,250.00 return on N1 million.

Coleman Technical Industries Restricted – Focused increase: N50bn

Provide opened June 26 and closed July 2, 2025, to assist short-term funding wants. Rated A- (GCR) and A- (Augusto).

180-day CP at 23.00%: N115,000.00 return on N1 million.
270-day CP at 24.75%: N185,625.00 return on N1 million.

Fidson Healthcare Plc – Focused increase: N20bn

Provide opened June 27 and closed July 4, 2025, to fund short-term working capital wants. Rated A (GCR) and A (Augusto).

182-day CP at 23.00%: N116,277.78 return on N1 million.
270-day CP at 24.75%: N185,625.00 return on N1 million.

Dangote Cement Plc – Focused increase: N100bn

Provide opened June 10 and closed June 13, 2025, to fund working capital and normal company functions. Rated AA+ (GCR) and AA (DataPro).

184-day CP at 23.00%: N117,555.56 return on N1 million.
268-day CP at 24.5001%: N182,389.63 return on N1 million.

Dangote Sugar Refinery Plc – Focused increase: N100bn

Provide opened June 23 and closed June 25, 2025, to assist short-term working capital and funding necessities. Rated A- (DataPro) and A+ (Augusto).

174-day CP at 23.00%: N111,166.67 return on N1 million.
265-day CP at 24.50%: N180,347.22 return on N1 million.

Daraju Industries Restricted – Focused increase: N20bn

Provide opened June 13 and closed June 23, 2025, to fund short-term working capital necessities. Rated BBB- (GCR).

181-day CP at 24.50%: N123,180.56 return on N1 million.

Payaza Africa Restricted – Focused increase: N20bn

Provide opened July 30 and closed August 11, 2025, to assist short-term working capital necessities. Rated A3 (GCR), A1 (DataPro), and Bbb (Augusto).

181-day CP at 22.20%: N111,616.67 return on N1 million.
272-day CP at 25.50%: N192,666.67 return on N1 million.

CIG Motors Firm Restricted – Focused increase: N20bn

Provide opened July 29 and closed August 4, 2025, to assist short-term working capital necessities. Rated A’ (DataPro).

181-day CP at 23.00%: N115,638.89 return on N1 million.
272-day CP at 25.00%: N188,888.89 return on N1 million.

What you must know

From June to July 2025, over N468 billion value of economic papers have been floated by Nigerian corporates, providing traders returns between 21% and 28.5% relying on tenor and issuer. Quick-term traders (180 days) earned average however regular returns, averaging 23% implied yield.

Medium-term traders (270 days) loved barely greater payouts, with yields climbing to as a lot as 28.5% within the case of Cutix Plc.

For traders looking for protected however rewarding short-term choices, industrial paper stays one of many highest-yielding investments in Nigeria’s fixed-income house, however the firm’s credit standing and monetary assertion should be thought of and reviewed to keep away from default danger, liquidity danger, or credit score downgrade danger.

Total, industrial papers within the assessment interval supplied enticing returns for traders throughout varied tenors. Whereas implied yields reward endurance, discounted charges present upfront money movement.

Disclaimer: This text is meant to supply normal data on industrial papers and doesn’t represent customized monetary recommendation. Traders are strongly inspired to seek the advice of with certified funding advisors earlier than making any funding selections associated to industrial papers.