Nigeria’s capital market attracted greater than N753 billion in business paper (CP) issuances between April and October 2025, the Securities and Trade Fee (SEC) has disclosed.
In accordance with the capital market regulator, this displays deepening liquidity, sturdy investor urge for food and renewed confidence in regulatory reforms which the fee mentioned boosted actions within the business paper house.
In a launch on Sunday, December 28, SEC Director-Basic, Dr. Emomotimi Agama, amongst different issues, defined the elements that strengthened investor sentiment available in the market through the yr.
What the SEC is saying:
Agama mentioned the CP market remained probably the most vibrant segments of the market through the overview interval, supporting short-term financing wants throughout manufacturing, agriculture, vitality and different vital sectors.
“Business paper issuance remained vibrant, with over N753 billion raised to help short-term funding wants throughout various sectors,” he famous.
The SEC DG added that the broader debt market additionally recorded landmark transactions, together with the N500 billion Local weather Funding SPV and the N200 billion Elektron Finance bond issuance.
These, he mentioned, replicate growing urge for food for infrastructure-linked and sustainable finance devices.
“These figures aren’t simply numbers; they characterize confidence in our regulatory framework and the resilience of our market structure,” Agama burdened.
He defined that the CP efficiency varieties a part of wider capital-raising actions accepted by the Fee throughout debt, fairness and hybrid devices through the interval.
Between April and October, the market “demonstrated outstanding depth and flexibility,” recording vital transactions that strengthened its position in mobilising capital for financial growth.
Agama additionally highlighted macroeconomic tailwinds—Nigeria’s current sovereign credit standing improve and the nation’s elimination from the FATF gray checklist—as supportive indicators which have strengthened investor sentiment.
“These achievements… sign renewed confidence in our financial system. They may entice higher funding and improve capital inflows,” he mentioned.
Financial circumstances:
On financial circumstances, the SEC boss mentioned easing inflationary pressures have created room for market innovation, urging operators to maneuver from coverage articulation to execution.
“The time for passive commentary is over. Our collective accountability is to activate alternatives and place the market as an engine of inclusive development,” he mentioned.
Responding to the sharp downturn in November—when the Nigerian Trade misplaced about N6.54 trillion in market capitalisation Agama attributed the droop to profit-taking forward of the proposed 30% Capital Features Tax, weak banking inventory sentiment and world uncertainties. He mentioned the market has since rebounded on coverage assurances.
He additionally described the migration of the fairness’s settlement cycle from T+3 to T+2 as a landmark reform that has enhanced liquidity and decreased counterparty danger, with plans already in movement to maneuver to T+1 and in the end T+0.
What you ought to know
Business paper is a short-term, unsecured debt instrument issued by firms to lift fast funds for working capital wants, sometimes with maturities of 270 days or much less. In accordance to SEC, firms raised a whole of N753 billion through the overview interval.
- It’s worthy of observe that Nigeria’s capital market is closing 2025 on a historic excessive, with whole market capitalization hitting N149.88 trillion as of December 24 simply shy of the N150 trillion mark for the primary time.
- The expansion displays sturdy efficiency throughout equities, bonds (debt devices), and ETPs, supported by sustained reforms, excessive home investor participation, and stable company actions.
- Equities dominated the market, contributing N97.89 trillion or 65% of whole worth, whereas bonds added N51.55 trillion and ETPs recorded N43.20 billion.
The NGX All-Share Index delivered a sturdy 49.17% year-to-date achieve, positioning the alternate amongst Africa’s high performers. Turnover greater than doubled, fuelled primarily by home retail and institutional traders in search of greater yields amid tight financial circumstances.
The SEC believes the sturdy business paper market, main debt issuances, improved macroeconomic indicators and ongoing market reforms—together with the T+2 settlement cycle—are collectively positioning Nigeria as a high funding vacation spot in Africa.
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