What N5 million can earn you at present: Industrial paper vs different short-term investments

A well-timed N5 million funding in industrial paper (CP) now delivers a number of the strongest short-term returns in Nigeria, outpacing most Treasury Payments (NTBs) and money-market alternate options.

With low cost charges nonetheless elevated within the last quarter of 2025, CPs are among the many few fixed-income devices providing constructive actual returns, making them particularly enticing for traders in search of security, liquidity, and excessive yields.

How a lot N5 million earns in CPs

Utilizing Dangote Cement’s November 2025 low cost charges (16.10% for 181 days and 16.70% for 265 days), a N5 million placement would ship;

181 days @ 16.10% (Dangote Cement low cost price)

Gross curiosity: N399,191.78
Web after 10% WHT: N359,272.60

265 days @ 16.70% (Dangote Cement low cost price)

Gross curiosity: N606,232.88
Web after 10% WHT: N545,609.59

364 days @ 18.38% (Daraju low cost price)

Gross curiosity: N916,482.19
Web after 10% WHT: N824,833.97

These yields stay elevated as a result of CP issuers proceed to cost aggressively in a decent financial atmosphere. With inflation easing and financial coverage anticipated to loosen in 2026, locking in 270–364-day CPs now permits traders to safe at present’s increased charges properly into mid-2026, when yields might development decrease.

How CP returns evaluate different short-term investments

Nigerian Treasury Payments

Utilizing the most recent public sale charges of 15.50% (182 days) and 17.50% (364 days), a N5 million placement delivers;

182 days @ 15.50%

Gross curiosity = N387,500.00 (about N11,691 much less than CPs)
Web after 10% WHT = N348,750.00
If NTB have been tax-exempt (outdated declare): internet = N387,500.00 (no WHT)

364 days @ 17.50%

Gross curiosity = N875,000.00 (about N41,482 much less than CPs)
Web after 10% WHT = N787,500.00
If NTB have been tax-exempt: internet = N875,000.00

Beforehand tax-exempt short-term devices at the moment are topic to a ten% withholding tax on curiosity, following the FIRS directive in October 2025; traders ought to subsequently evaluate net-of-tax returns when selecting between CPs and NTBs.

If N5 million had been invested in a inventory like Zenith Bank 6 months (180 days) in the past and delivered an analogous 16.10% return, the acquire can be N805,000, notably increased than the 181-days CP return.

Nonetheless, equities carry value volatility threat. A +16% return might simply be a −16% loss. Whereas CPs carry credit score threat, they’re unsecured and make issuer high quality crucial.

For traders prioritizing stability and predictable money flows, CPs stay the extra conservative alternative.

Current CP alternatives in 2025

Though the market noticed a number of CP issuances in November and December 2025, beneath are a number of the issuances.

HillCrest Agro-Allied Industries Restricted (Closing 16 Dec 2025)

182-day: 19.42% (low cost), 21.50% implied yield
364-day: 19.69% (low cost), 24.50% implied yield

Mecure Industries Plc (Closing 12 Dec 2025)

269-day: 18.1855% (low cost), 21% implied yield

GLNG Funding SPV PLC (Closed 5 Dec 2025)

179-day: 18.2136% (low cost), 20% implied yield
270-day: 18.9208% (low cost), 22% implied yield

Daraju Industries (Closed 26 Nov 2025)

270-day: 18.55% (low cost), 21.50% implied yield
364-day: 18.38% (low cost), 22.50% implied yield

Dangote Cement Plc (Closed 19 Nov 2025)

181-day: 16.10% (low cost), 17.50% implied yield
265-day: 16.70% (low cost), 19.05% implied yield

A N5 million funding meets the everyday minimal subscription measurement for institutional CPs and may ship stable short-term returns, topic to issuer threat.

Why CPs are enticing within the present market

Excessive-rate atmosphere: Many 2025 issuances supplied double-digit yields far above deposit merchandise.
Brief maturities: Tenors of 90–364 days provide fast capital turnover.
Decrease entry factors by way of fintechs: Traders can now commit as little as N100,000, bettering diversification.

Key Checks Earlier than Choosing a CP

Confirm CP programme is SEC-registered and quoted on FMDQ.
Confirm issuer credit score rankings from GCR, DataPro, or Agusto.
Assess liquidity — many CPs do not commerce after issuance.
Perceive issuer fundamentals as a result of CPs are unsecured.

Tips on how to Make investments N5 Million in Industrial Paper

Arrange an funding account with a licensed dealer or issuing home; CSCS particulars could also be wanted.
Observe accessible CPs by way of FMDQ quotes or dealer bulletins.
Conduct issuer due diligence — credit standing, monetary place, debt ranges.
Choose a tenor aligned together with your liquidity wants (180–360 days).
Subscribe and fund on the discounted value.
Maintain or commerce relying on whether or not secondary-market liquidity exists.