By Simpson Global Media News Desk
DATE OF REPORT RELEASE: 28 October 2026
TIME: Exact release time not confirmed in available reporting
MONTH AND YEAR: October 2026
LOCATION: Lagos, Nigeria — Nigerian Exchange Limited; no physical launch venue confirmed
REPORT/PUBLICATION DATE: 29 October 2026
REPORTING PERIOD: January–September 2026
SOURCE REPORT: Nigerian Exchange Limited, Third-Quarter 2026 Commercial Paper Market Report
Corporate Borrowing Through Commercial Paper Reaches ₦1.51 Trillion
Nigerian companies raised ₦1.51 trillion through commercial paper during the first nine months of 2026, highlighting the growing importance of short-term debt financing as businesses seek funds to support operations, manage cash flow and meet immediate financial obligations.
The Nigerian Exchange Limited (NGX) disclosed the figures in its third-quarter commercial paper market report, released in late October. The report showed that 60 issuers raised the money through 131 commercial paper series between January and September 2026.
Of the total, seven series valued at ₦216.1 billion were listed on the NGX. This represents approximately 14.3 per cent of the reported ₦1.51 trillion market, leaving the majority of issuance outside the Exchange’s listed commercial paper segment.
The market recorded ₦506.4 billion in commercial paper issuance during the third quarter alone, with 28 issuers raising funds through 46 new series.
Agriculture accounted for the largest share of third-quarter issuance, raising ₦226.2 billion, equivalent to 45 per cent of the quarterly total. Oil and gas companies raised ₦106 billion, while financial services issuers raised ₦65 billion.
Agriculture also led issuance over the first nine months of the year, with ₦512.7 billion raised between January and September.
The figures indicate that commercial paper has become an important source of short-term financing for Nigerian businesses. They also highlight an opportunity for the NGX to attract more issuers to its platform and increase the visibility of corporate debt instruments.
However, the volume of money raised does not by itself establish that all issuers are financially strong or that the borrowing has been profitable. Commercial paper remains a debt obligation that must be repaid under the terms agreed with investors.
The market’s next phase will depend on borrowing costs, investor confidence, companies’ repayment capacity and the ability of the Exchange to attract a greater proportion of issuance onto its platform. <Cite refs={["turn818797search0","turn818797search1","turn818797search3"]}/>
What Is Commercial Paper?
Commercial paper is a short-term debt instrument issued by companies to raise money from investors. Businesses may use it to finance working capital, purchase raw materials, pay suppliers, manage seasonal cash-flow requirements or meet other short-term obligations.
Instead of relying exclusively on conventional bank loans, a company can issue commercial paper to investors under specified terms, including the amount raised, maturity date and return structure.
For businesses with established financial records and access to investors, the instrument can provide another way to obtain funding. It can also help companies manage the timing gap between expenditure and the receipt of revenue.
For example, a manufacturer may need to purchase raw materials and pay workers before customers settle their invoices. Commercial paper can help cover that gap, provided the company has a credible plan for repayment when the instrument matures.
Agricultural businesses may use short-term funding to purchase inputs, finance processing, store commodities or support distribution while waiting for sales revenue.
For investors, commercial paper provides an opportunity to lend money to a company in exchange for an agreed return. The attractiveness of an individual instrument depends on factors including the issuer’s creditworthiness, maturity, pricing and the investor’s ability to access funds before the due date.
Commercial paper is not the same as a bank deposit or a government Treasury bill. It carries corporate credit risk, meaning the investor depends on the issuing company’s ability to meet its obligations.
The risk can vary considerably between issuers. A company with strong cash flow and a manageable debt burden may be better positioned to repay its obligations than a company experiencing financial difficulties.
Investors must therefore assess the terms of each instrument rather than assume that all commercial paper issues offer the same level of security.
Third-Quarter Issuance Reaches ₦506.4 Billion
The NGX report showed that companies raised ₦506.4 billion through 46 new commercial paper series during the third quarter of 2026.
The funds were raised by 28 issuers, demonstrating the continuing use of short-term debt instruments across several business sectors.
The third-quarter amount represented approximately one-third of the ₦1.51 trillion raised during the first nine months of the year.
The figures suggest that commercial paper continued to play a substantial role in corporate financing during July, August and September.
However, issuance volume alone does not reveal whether the market expanded because more companies entered, existing issuers borrowed larger amounts or companies refinanced earlier obligations.
Those distinctions matter when evaluating the long-term development of the market. A rise in issuance can indicate greater demand for financing, but it can also reflect the refinancing of maturing debt rather than an equivalent increase in new investment.
Businesses may issue commercial paper to support productive expansion, but they may also use short-term instruments to manage temporary cash shortages or replace other borrowing.
The report’s figures establish the amount raised and the number of series and issuers involved. Further information about the use of proceeds and the financial performance of individual issuers would be needed to determine how much of the borrowing supported additional investment or business growth.
For policymakers and investors, the composition of issuance is therefore as important as the headline total.
Agriculture Leads Corporate Commercial Paper Activity
Agriculture was the largest sector for commercial paper issuance during the third quarter, accounting for ₦226.2 billion, or 45 per cent of the quarter’s total.
The sector also led issuance across the first nine months of 2026, raising ₦512.7 billion between January and September.
Oil and gas companies followed with ₦106 billion in third-quarter issuance, while financial services businesses raised ₦65 billion.
Agriculture’s leading position highlights the sector’s need for working capital and financing that aligns with production and distribution cycles.
Agricultural businesses may need to spend money well before they receive revenue from sales. Farmers and agribusiness operators must purchase seeds, fertilisers, equipment and other inputs, while processors and distributors need funds for storage, transportation, packaging and inventory.
Commercial paper can help eligible companies bridge these financing gaps. It may be particularly useful where revenue arrives at different times of the year or where businesses need to finance inventory before peak demand.
However, short-term borrowing must be matched carefully to the timing of cash flows. Agricultural operations can be exposed to weather risks, crop losses, price fluctuations and delays in moving produce to market.
A company that borrows for a short period but experiences a delayed harvest or weaker-than-expected sales may face difficulty repaying on time.
The high share of agricultural issuance should therefore be interpreted as evidence of substantial financing activity, not proof that every agricultural borrower is financially secure.
It also raises questions about the terms on which agribusinesses obtain funding and whether financing is available at sustainable rates.
For the sector, access to suitable finance can support production and distribution, but repayment schedules need to reflect the realities of agricultural operations.
Why Most Commercial Paper Is Not Listed on NGX
One of the report’s most significant findings is the relatively small proportion of commercial paper issuance listed on the Nigerian Exchange.
Of the ₦1.51 trillion raised during the first nine months of 2026, only seven series valued at ₦216.1 billion were listed on NGX.
That means approximately ₦1.29 trillion, or 85.7 per cent of the reported total, was outside the Exchange’s listed commercial paper segment.
The difference represents an opportunity for the NGX to attract more issuers to its platform. It also raises questions about why companies use other issuance and distribution channels.
Companies may have established arrangements with investors and financial advisers that allow them to raise money without seeking a listing on the Exchange. Their decisions can also depend on transaction costs, documentation requirements, investor preferences and the structure of individual instruments.
For the Exchange, attracting additional listings could improve visibility and make information about issuers and their debt instruments easier for market participants to access.
An organised market can support transparency by making relevant information available through established reporting and disclosure arrangements.
However, listing alone does not eliminate credit risk. Investors must still assess the issuing company’s financial position, repayment capacity and the terms of the instrument.
The NGX has said it wants to increase its role in the commercial paper market by working with issuers, financial advisers and institutional investors.
The challenge is to demonstrate that listing provides sufficient benefits in visibility, investor access and market development to encourage more companies to use the platform.
The outcome will depend on whether issuers find the process commercially attractive and whether investors respond to the additional opportunities.
Companies Already Using the Listed Market
The NGX report identified commercial paper issuances involving Dangote Cement Plc, NGN Gram Limited, MeCure Industries Plc, Coleman Technical Industries Limited and Advans La Fayette Microfinance Bank Limited.
The seven listed series included three that had originally been offered in late 2025.
Dangote Cement accounted for approximately ₦119.9 billion of the reported listed issuance, while Coleman Technical Industries accounted for ₦66 billion.
Together, the two companies represented ₦185.9 billion of the ₦216.1 billion listed total.
That concentration illustrates the extent to which the listed segment’s reported value was dominated by two issuers during the period.
The participation of established companies can help demonstrate how commercial paper is used in practice, but it does not mean every company will have the same ability to raise funds on comparable terms.
Larger or better-known businesses may have established relationships with investors and advisers, while smaller companies may need additional support to prepare documentation, explain their financial position and attract investor interest.
The NGX’s effort to expand listings will therefore require engagement with companies of different sizes and across multiple sectors.
The objective is not simply to increase the number of listed series. It is also to develop a market in which investors can access reliable information and assess the risks associated with individual instruments.
Monetary Policy Changes the Borrowing Environment
The commercial paper market operated against a changing monetary-policy backdrop during the third quarter.
According to the NGX report, the stop rate on 364-day Treasury bills fell to 15.89 per cent in the third quarter from 17.34 per cent in the second quarter.
The Central Bank of Nigeria also reduced its Monetary Policy Rate by 350 basis points to 23 per cent on 22 September 2026.
A basis point is one-hundredth of a percentage point. A reduction of 350 basis points therefore represents a decline of 3.5 percentage points.
The report also noted that headline inflation fell to 14.63 per cent in September, while the average commercial paper discount rate increased slightly to 19.35 per cent in the third quarter from 19.02 per cent in the second quarter.
These figures show that the pricing of corporate short-term debt does not necessarily move in the same direction or at the same speed as government securities yields or the central bank’s policy rate.
Treasury bills are government securities, while commercial paper is issued by companies and carries a different set of risks.
Investors may demand a higher return from a corporate issuer to compensate for the possibility that it could fail to repay on time. Pricing can also be affected by liquidity, investor demand, the maturity of the instrument and the issuer’s financial strength.
Consequently, a reduction in benchmark rates does not automatically lead to an equivalent reduction in commercial paper borrowing costs.
The slight rise in the average discount rate during the third quarter, despite the fall in the Treasury bill stop rate, illustrates the importance of these differences.
Could Corporate Borrowing Costs Fall in the Fourth Quarter?
The NGX report anticipated that lower benchmark yields could begin to influence commercial paper pricing in the fourth quarter as companies refinance maturing obligations.
If benchmark rates remain lower and investor demand is sufficient, some companies may be able to issue new commercial paper at more favourable rates than previously available.
For borrowers, lower financing costs can reduce the expense of managing working capital and support business operations.
For investors, however, lower yields on new instruments could reduce the returns available compared with commercial paper issued under earlier market conditions.
The outcome is not guaranteed. Companies with weaker credit profiles may continue to face higher borrowing costs, while a change in investor sentiment could affect demand for new issues.
The maturity of existing instruments also creates repayment obligations. Companies must be able to repay investors or arrange replacement financing under terms they can sustain.
A business that relies too heavily on repeatedly refinancing short-term debt may become vulnerable if market conditions deteriorate or investors become unwilling to provide new funds.
Responsible financing therefore requires companies to consider the maturity profile of their liabilities, their cash flow and the availability of alternative funding sources.
For investors, the changing rate environment reinforces the importance of comparing yields with the risk of the underlying issuer.
Twenty-Seven Commercial Paper Series Due to Mature
The NGX report said 27 commercial paper series issued by 23 companies were scheduled to mature during the fourth quarter of 2026.
Those maturities will require the affected companies to meet their repayment obligations under the terms of their instruments.
An issuer may repay using operating cash flow, available reserves or new financing. Some companies may choose to issue fresh commercial paper to replace maturing obligations, while others may seek bank loans or other funding options.
The maturity schedule creates an opportunity for the NGX to attract additional listings if companies decide to refinance through its platform.
However, refinancing is not automatic, and the amount of maturing debt does not establish how much new issuance will occur.
Companies must assess their financial position, borrowing costs and investor demand before deciding how to meet upcoming obligations.
The ability to refinance depends on market conditions as well as the issuer’s creditworthiness. A company that experiences falling revenue or increasing operating costs may find it harder to secure new funding.
Investors should therefore pay attention to the maturity dates and repayment arrangements of individual instruments.
The fourth quarter will provide a useful test of whether the market can sustain issuance activity while companies manage the obligations created by earlier borrowing.
What the Figures Mean for Businesses
The ₦1.51 trillion raised through commercial paper illustrates the scale of short-term financing activity among Nigerian companies.
For businesses, the instrument can provide an alternative to conventional bank loans and help manage temporary cash-flow requirements.
It can be especially useful where companies need to finance purchases, production or distribution before revenue is received.
However, access to financing is only one part of business performance. Companies must also ensure that borrowing supports activities capable of generating enough cash to meet repayment obligations.
Short-term debt can create problems if it is used to finance long-term investments without a suitable repayment plan. It can also become difficult to manage when interest rates are high or a company’s revenue is unpredictable.
Businesses considering commercial paper should therefore evaluate the amount they intend to borrow, the cost of financing, the maturity date and the reliability of their expected cash flow.
Companies should also consider whether a different financing structure would better match the duration and risk of their investment.
For smaller firms, improving financial reporting and establishing reliable records may help them demonstrate their creditworthiness to potential investors.
The development of the commercial paper market could broaden the range of financing options available to eligible companies, but sustainable borrowing remains essential.
What Investors Should Consider
Commercial paper can offer investors an opportunity to earn a return over a defined period, but it is important to understand the risks involved.
The most important consideration is the issuer’s ability to repay. Investors should review available financial statements, the company’s cash flow, existing debt, business outlook and the terms of the specific instrument.
The quoted return should be considered alongside the possibility of delayed payment or default. A higher yield may reflect higher risk rather than a better investment opportunity.
Investors should also consider whether they can hold the instrument until maturity or whether there is a practical way to sell it earlier.
Liquidity matters because an investor who needs cash before maturity may not be able to exit on favourable terms.
Diversification can reduce dependence on the performance of a single issuer, although it cannot eliminate all market risk.
Investors should not assume that commercial paper carries the same protections as a bank deposit or a government security. The legal and financial terms of the particular instrument determine the rights and risks involved.
The expansion of listed issuance could make relevant information more accessible, but investors still need to conduct appropriate assessments before committing funds.
NGX Seeks to Expand Its Role
NGX Chief Executive Officer Jude Chiemeka said the commercial paper market offered a significant opportunity to expand short-term financing for businesses and deepen the capital market’s contribution to corporate funding.
He said the Exchange was working to improve market visibility, promote transparency and engage issuers, financial advisers and institutional investors to encourage more commercial paper listings.
NGX Head of Trading and Products Abimbola Babalola also highlighted the ₦1.51 trillion raised during the first nine months of 2026 as evidence of commercial paper’s role in meeting corporate financing needs.
The Exchange’s strategy is to attract a greater share of issuance onto its platform and broaden investor access to these instruments.
To achieve that objective, it will need to demonstrate the benefits of listing and work with companies to address barriers that may discourage participation.
Those barriers could include transaction costs, documentation requirements, administrative procedures and the preferences of existing investors. The specific importance of each factor will vary by issuer.
The Exchange will also need to maintain investor confidence through reliable market information and appropriate disclosure arrangements.
More listings could help strengthen the visibility of the commercial paper market, but long-term development will depend on sustained participation from both issuers and investors.
What Happens Next?
The fourth quarter will be an important period for the market because 27 commercial paper series issued by 23 companies are scheduled to mature.
Those maturities could prompt companies to refinance existing obligations, repay investors from operating cash flow or seek other sources of funding.
The NGX will be looking for opportunities to attract additional listed issuance as companies review their financing arrangements.
Market participants will also monitor whether lower Treasury bill yields and the September monetary-policy reduction influence commercial paper pricing in the coming months.
The outcome will depend on benchmark rates, investor demand, corporate credit risk and the financial position of individual issuers.
Further reports from NGX should help establish whether the proportion of commercial paper listed on the Exchange increases and whether issuance remains concentrated in a small number of sectors or companies.
For businesses, the priority will be to secure suitable financing without creating unsustainable repayment obligations. For investors, the focus will remain on the balance between expected returns, liquidity and credit risk.
Conclusion
Nigerian companies raised ₦1.51 trillion through 131 commercial paper series between January and September 2026, according to the Nigerian Exchange’s third-quarter report.
The market included 60 issuers, with agriculture leading both quarterly issuance and the nine-month total. Yet only seven series valued at ₦216.1 billion were listed on the NGX, leaving most reported issuance outside its listed segment.
The figures show that commercial paper is an important source of short-term financing, while also highlighting the opportunity for the Exchange to attract more companies and expand investor access.
The changing interest-rate environment and the maturity of 27 series in the fourth quarter will help determine how the market develops over the remainder of the year.
Ultimately, the strength of the market will depend not only on how much money companies raise but also on whether borrowing remains sustainable, investors receive reliable information and issuers meet their repayment obligations.
Commercial paper can support business activity when used appropriately. Its contribution to Nigeria’s economy will depend on transparent markets, prudent corporate financing and continued confidence among companies and investors.
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