Nigeria’s capital market attracted over N753 billion from commercial paper issuances between April and October 2025, signalling rising investor confidence and the market’s growing strength, according to the Director-General of the Securities and Exchange Commission, SEC, Dr Emomotimi Agama.
Agama explained that the funds were raised to address short-term financing requirements in key sectors of the economy, notably manufacturing, energy and agriculture.
He said the robust activity in the commercial paper segment formed part of wider capital-raising approvals granted by the Commission during the review period.
“Commercial paper issuance remained vibrant, with over N753 billion raised to support short-term funding needs across diverse sectors,” he said.
Beyond short-term instruments, Agama noted that the debt capital market recorded major milestones, highlighting the N500 billion Climate Funding Special Purpose Vehicle and the N200 billion Elektron Finance bond issuance. According to him, the transactions reflected growing investor interest in infrastructure projects and sustainable finance products.
“These figures are not just numbers; they represent confidence in our regulatory framework and the resilience of our market architecture,” Agama said, adding that the SEC approved substantial debt, equity and short-term market transactions between April and October 2025.
He linked the positive market performance to improvements in Nigeria’s macroeconomic environment, including the country’s sovereign credit rating upgrade and its removal from the Financial Action Task Force, FATF, grey list.
Agama said these developments had strengthened investor sentiment and were expected to drive higher capital inflows into the country.
He also observed that easing inflationary pressures had opened space for innovation in the capital market, urging stakeholders to focus on implementing new products and platforms rather than limiting efforts to policy design.
“This is a call to action for market operators. Innovation cannot remain on paper. We must translate these frameworks into real products and accessible platforms,” he said.
Addressing recent market fluctuations, the SEC boss acknowledged the sharp decline recorded in November, when the Nigerian Exchange shed about N6.54 trillion in market capitalisation. He attributed the downturn to profit-taking ahead of the proposed 30 per cent capital gains tax, weak banking stock performance and broader global economic uncertainties.
However, he noted that the market recovered after policy reassurances, stressing that despite the November drop, the Exchange remained strongly positive on a year-to-date basis, underscoring its underlying resilience.
Agama further outlined ongoing reforms in the capital market, including the transition of the equities settlement cycle from T+3 to T+2, which he described as consistent with international best practice. He said the move would boost liquidity, lower counterparty risk and speed up capital recycling.
He added that the Commission plans to advance to T+1 and eventually T+0 settlement, while also deepening commodity trading and expanding participation in the bond market, as part of efforts to position Nigeria as a leading investment hub in Africa and a driver of sustainable economic growth.
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