Nigeria’s capital market recorded a major boost in liquidity between April and October 2025, raising over ₦753 billion through commercial paper issuances, a development that underscores renewed investor confidence and the growing resilience of the market.
The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, disclosed this in an interview, noting that the funds were deployed to meet short-term financing needs across key sectors, including manufacturing, energy and agriculture.
According to Agama, the sustained activity in the commercial paper segment reflects the market’s ability to support businesses with flexible funding options while reinforcing confidence in Nigeria’s regulatory environment.
“Commercial paper issuance remained vibrant, with more than ₦753 billion raised to support short-term funding requirements across diverse sectors of the economy,” the SEC chief said.
He further revealed that the debt capital market recorded landmark transactions during the period under review, including the ₦500 billion Climate Funding Special Purpose Vehicle (SPV) and the ₦200 billion Elektron Finance bond issuance, signalling increased appetite for infrastructure development and sustainable finance investments.
“These figures go beyond statistics. They reflect trust in our regulatory framework and the strength of Nigeria’s capital market architecture,” Agama stated.
The SEC Director-General explained that the strong performance of commercial papers formed part of broader capital-raising activities approved by the Commission across debt, equity and short-term instruments, highlighting the market’s depth and adaptability.
“Between April and October 2025, the Commission approved significant transactions across multiple segments of the market, demonstrating its capacity to mobilise capital for economic growth and development,” he said.
Agama also pointed to recent macroeconomic improvements, including Nigeria’s sovereign credit rating upgrade and the country’s removal from the Financial Action Task Force (FATF) grey list, describing them as positive signals to both domestic and foreign investors.
“These developments signal renewed confidence in the Nigerian economy and are expected to attract stronger capital inflows while enhancing financial market stability,” he noted.
On inflation, the SEC boss observed that easing price pressures had created opportunities for product innovation, urging market operators to shift from policy formulation to execution.
“This is a call to action. Innovation must move from paper to practice. Market frameworks must translate into real products and accessible platforms that meet the needs of today’s investors,” he stressed.
Addressing recent market volatility, Agama acknowledged the sharp downturn in November, when the Nigerian Exchange lost about ₦6.54 trillion in market capitalisation, attributing the decline to profit-taking ahead of the proposed 30 per cent Capital Gains Tax, weak sentiment in banking stocks and global economic uncertainties.
He, however, noted that the market rebounded following policy reassurances, adding that the Exchange remains strongly positive year-to-date.
“Despite the November volatility, the market’s overall performance reflects its underlying robustness and resilience,” he said.
Agama also highlighted the migration of the equities settlement cycle from T+3 to T+2, describing it as a significant reform aligned with global best practices.
“Shorter settlement cycles enhance liquidity, reduce counterparty risk and accelerate the reinvestment of capital,” he explained, adding that the SEC plans to advance to T+1 and ultimately T+0 settlement.
According to him, these reforms—alongside efforts to deepen commodity trading and expand bond market participation—will strengthen Nigeria’s position as a leading investment destination in Africa.
“The time for passive observation is over. Our collective responsibility is to activate these opportunities and position the Nigerian capital market as a true engine of inclusive and sustainable growth,” Agama concluded.
Nigeria’s capital market raised over ₦753bn through commercial paper issuances between April and October 2025, as SEC DG Emomotimi Agama highlights rising investor confidence, major debt market deals and ongoing capital market reforms.
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