LAGOS – Nigerian corporations are increasingly turning to Commercial Papers (CPs) for short-term financing, with issuances skyrocketing from ₦3 billion to ₦193 billion across diverse sectors. This shift comes as businesses seek relief from sky-high bank loan rates exceeding 30%, driven by the Central Bank’s 27.5% Monetary Policy Rate (MPR).
Who’s Issuing – And at What Yields?
Leading the pack is Access Bank, which raised ₦193.25 billion across two series at 21.5%–24.75% yields. Other notable issuers include:
-
MeCure Industries (Healthcare) – ₦10B at 26%
-
Daraju Industries (Manufacturing) – ₦4B at 25%
-
Finceptive Ltd. (Fintech) – ₦3B oversubscribed
-
FCMB – ₦70B dual-series offer
According to FMDQ Securities Exchange, total CP programs now exceed ₦8.19 trillion, with ₦7.23 trillion already quoted.
Why Companies Are Ditching Bank Loans for CPs
Cheaper Funding – CP yields (19–30%) undercut bank loans priced above 30%.
Speed & Flexibility – Issuance takes days vs. weeks for bank credit.
No Collateral – Unsecured nature appeals to asset-light firms.
Regulatory Rush – Firms are accelerating issuances ahead of a potential SEC takeover from FMDQ in July 2025, which may lengthen approval timelines.
“CPs offer a lifeline in this tight credit environment,” says Oluwafemi Adetuberu, Fixed Income Analyst at Rhodium Capital. “MeCure’s 22.54% CP is far cheaper than any bank loan.”
Investor Appeal: High Yields, Short Tenors
CPs are trouncing traditional fixed-income options:
FGN Savings Bonds: 15–17%
Treasury Bills: 17–18.5%
Money Market Funds: 12–22%
Key Perks for Investors:
✔ Discount pricing – Upfront interest at purchase
✔ Short tenors (90–270 days) – Enables reinvestment at rising rates
✔ FMDQ-quoted CPs – Enhanced liquidity & transparency
But Risks Remain:
Unsecured – No collateral if issuers default
High minimums – Often ₦5M+, limiting retail access
How to Invest in CPs
Open a trading account with a stockbroker
Obtain a CSCS number
Meet HNI/institutional investor criteria (for most primary issuances)
The Bottom Line
With bank lending costs prohibitive and CP yields attractive, this market will keep growing. “CPs are no longer alternative financing—they’re now mainstream,” notes Adetuberu.
