The Securities and Exchange Commission (SEC) approved commercial paper (CP) programmes worth N1.37 trillion as of October 23, 2025, reflecting growing recourse to short-term debt in corporate funding strategies.
However, actual drawdowns from these approvals remained significantly lower, according to data from the Commission.
SEC-approved issuances show that Corporates raised approximately N753 billion across multiple series and tranches, translating to a utilisation rate of about 54%.
The wide gap between approved limits and funds highlights a cautious approach by issuers, who are increasingly tapping the CP market in phases rather than fully utilising programme sizes at once.
The SEC approved commercial paper (CP) programmes worth N1.37 trillion as of October 23, 2025 but corporates raised about N753 billion.
Issuance activity was heavily concentrated among a few large corporates, led overwhelmingly by Dangote Sugar Refinery Plc. Operating under a N300 billion programme, Dangote Sugar accounted for over 45% of total CP issuance, raising more than N300 billion across multiple series.
Its dominance highlights how large, cash-intensive firms are leaning on the CP market to manage working capital and refinancing needs.
Beyond Dangote Sugar, issuance was more fragmented across financial services, agribusiness, and consumer sectors. Johnvents Industries Limited raised about N52.6 billion, UAC Nigeria Plc issued N45 billion, while Citibank Nigeria Limited drew just N26.7 billion despite a large approval size.
Fintechs and mid-sized firms, notably Payaza Africa Limited, also deepened participation.
Dangote Sugar Refinery Plc emerged as the dominant issuer during the period, accounting for over 45% of total commercial paper issuance.
Operating under a N300 billion programme, the company issued multiple tranches ranging from Series 10 to Series 16, with individual issuances spanning N4.7 billion to N96.7 billion. Collectively, Dangote Sugar raised over N300 billion, making it the single largest contributor to CP market liquidity in 2025.
Its repeated market access reflects both its scale and the growing reliance of large corporates on short-term funding to manage working capital and refinancing needs.
Behind Dangote Sugar, issuance activity was spread across financial services, agribusiness, and consumer-facing sectors.
Johnvents Industries Limited raised about N52.6 billion from its N100 billion programme, while UAC Nigeria Plc issued N45 billion under its N65 billion programme.
In the financial sector, Citibank Nigeria Limited, operating a N300 billion CP programme, issued N26.7 billion across two series, reflecting relatively modest utilisation despite a large approval size.
The data also show increased participation from fintechs and mid-sized issuers.
The data also show increased participation from fintechs and mid-sized issuers.
Payaza Africa Limited raised nearly N43 billion across three series under its N50 billion programme, making it one of the most active non-industrial issuers in the market.
Golden Fertilizer Company Limited issued N20.0 billion from a N40 billion programme, while Skymark Partners Limited raised just over N11 billion despite holding a similar programme size, reflecting shorter-term, working-capital-focused issuance.
Other notable issuers included Champion Breweries Plc, Valency Agro Nigeria Limited, Neveah United Capital Plc, and several special-purpose vehicles, all contributing smaller but consistent volumes to overall issuance.
Corporates including those yet to be listed on the Nigerian Exchange (NGX), are increasingly exploring cheaper funding options in response to elevated interest rates of commercial banks due to high benchmark policy rates (MPR at 27%); banks often add margins on top of that for risk and cost, which push actual loan pricing higher.
Corporate borrowers with strong credit histories may negotiate prime lending rates somewhat closer to the base lending rate or slightly below, while smaller or riskier firms pay higher rates. It is against this background that Commercial Paper issuances rose sharply during the review period.
Across issuers, maturities were largely clustered between December 2025 and mid-2026, reinforcing the use of commercial papers as short-term liquidity tools rather than long-term financing instruments of commercial banks that come with premium cost.
Analysts note that the strong pipeline of approved but undrawn programmes suggests issuance activity could remain elevated into 2026, particularly if borrowing costs stay high and access to long-term credit remains constrained.