Investing in commercial paper (CP) has become one of the most attractive fixed-income options for Nigerian investors in 2025.
With the Monetary Policy Rate (MPR) staying elevated, yields on CPs remain high, giving investors better risk-adjusted returns compared to many other asset classes.
The minimum subscription is N5 million and N1,000 thereafter, with interest or discount income subject to 10% withholding tax.
Most CPs are issued in 180-day and 270-day tenors (there are some with 90-day or 360-day), though some carry slight variations in days, about five days more or less. Investors who choose to hold their investment until maturity earn returns based on the implied yield, while those who prefer to take their returns upfront subscribe at a discounted rate.
Between June and July 2025, corporates across banking, manufacturing, industrial goods, healthcare, and consumer goods tapped the market, offering investors double-digit yields.
Cutix Plc led the market with the highest 270-day implied yield at 28.5%, followed by SKLD at 27.5% whereas SKLD led the market with the highest 180-day implied yield at 24.65%, followed by Daraju at 24.50%.
This article breaks down some of the notable CPs issued in June and July 2025, highlighting the cash returns, implied yields, and discount rates for 180-day and 270-day tenors.
Commercial papers are typically sold at a discount, meaning investors pay less than the face value upfront and receive the full value at maturity. However, depending on investor preference:
Below is a breakdown of how much an investor with N5 million would earn across these issuances in June and July 2025.
Note that the cash returns are gross without deduction of withholding tax and brokerage fees. Cash returns are computed with only implied yield and 360 days to prorate for a full year.
While the minimum subscription for commercial papers is N5 million, this article will illustrate returns using N1 million, since some stockbrokers and fintech platforms allow investors to participate through pooled investments
Offer opened May 30 and closed June 17, 2025, to support short-term funding requirements. Rated A1 (DataPro).
Offer opened June 10 and closed June 17, 2025, to fund short-term working capital needs. Rated A1 (DataPro).
Offer opened June 27 and closed July 4, 2025, to support short-term working capital needs. Rated BBB+ (GCR) and BBB (Augusto).
Offer opened June 30 and closed July 4, 2025, to support short-term working capital requirements. Rated BBB+ (GCR, DataPro, and Augusto).
Offer opened June 26 and closed July 2, 2025, to support short-term working capital and funding requirements. Rated A1 (DataPro) and A2 (GCR).
Offer opened June 26 and closed July 2, 2025, to support short-term working capital and funding requirements. Rated A1 (DataPro) and A2 (GCR).
Offer opened May 27 and closed June 3, 2025, to fund short-term working capital needs. Rated A2 (GCR) and A- (Augusto).
Offer opened June 26 and closed July 2, 2025, to support short-term funding needs. Rated A- (GCR) and A- (Augusto).
Offer opened June 27 and closed July 4, 2025, to fund short-term working capital needs. Rated A (GCR) and A (Augusto).
Offer opened June 10 and closed June 13, 2025, to fund working capital and general corporate purposes. Rated AA+ (GCR) and AA (DataPro).
Offer opened June 23 and closed June 25, 2025, to support short-term working capital and funding requirements. Rated A- (DataPro) and A+ (Augusto).
Offer opened June 13 and closed June 23, 2025, to fund short-term working capital requirements. Rated BBB- (GCR).
Offer opened July 30 and closed August 11, 2025, to support short-term working capital requirements. Rated A3 (GCR), A1 (DataPro), and Bbb (Augusto).
Offer opened July 29 and closed August 4, 2025, to support short-term working capital requirements. Rated A’ (DataPro).
From June to July 2025, over N468 billion worth of commercial papers were floated by Nigerian corporates, offering investors returns between 21% and 28.5% depending on tenor and issuer. Short-term investors (180 days) earned moderate but steady returns, averaging 23% implied yield.
Medium-term investors (270 days) enjoyed slightly higher payouts, with yields climbing to as much as 28.5% in the case of Cutix Plc.
For investors seeking safe but rewarding short-term options, commercial paper remains one of the highest-yielding investments in Nigeria’s fixed-income space, but the company’s credit rating and financial statement must be considered and reviewed to avoid default risk, liquidity risk, or credit downgrade risk.
Overall, commercial papers in the review period offered attractive returns for investors across various tenors. While implied yields reward patience, discounted rates provide upfront cash flow.
Disclaimer: This article is intended to provide general information on commercial papers and does not constitute personalized financial advice. Investors are strongly encouraged to consult with qualified investment advisors before making any investment decisions related to commercial papers.