By Niyi Jacobs
Nigeria’s capital market raised over ₦753 billion through commercial paper issuances between April and October 2025, highlighting sustained investor confidence and the resilience of the financial market, the Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has said.
Agama disclosed this in an interview, noting that the funds were deployed to meet short-term financing needs across critical sectors of the economy, including manufacturing, energy, and agriculture.
“Commercial paper issuance remained vibrant, with over ₦753 billion raised to support short-term funding needs across diverse sectors,” he said.
Beyond commercial papers, the SEC DG said the debt market recorded significant milestone transactions during the period. These included the ₦500 billion Climate Funding Special Purpose Vehicle and the ₦200 billion Elektron Finance bond issuance, reflecting growing investor appetite for infrastructure development and sustainable finance instruments.
According to Agama, the figures underscore confidence in Nigeria’s regulatory framework and the strength of its capital market architecture. He explained that the performance of the commercial paper segment formed part of broader capital-raising activities approved by the Commission across debt, equity, and short-term instruments.
“Between April and October 2025, the Commission approved significant transactions across debt, equity, and commercial paper segments, underscoring the market’s capacity to mobilise capital for growth,” he said, adding that these developments are key to positioning the capital market as a catalyst for sustainable economic expansion.
Agama also pointed to positive macroeconomic signals, including Nigeria’s recent sovereign credit rating upgrade and its removal from the Financial Action Task Force (FATF) grey list. He described these developments as strong indicators of renewed investor confidence that would support increased capital inflows.
On inflation, the SEC boss said easing price pressures present opportunities for innovation within the market, urging operators to move beyond policy frameworks to execution. He stressed the need to translate reforms into real products and platforms that meet the needs of modern investors.
While acknowledging the sharp downturn in November—when the Nigerian Exchange lost about ₦6.54 trillion in market capitalisation—Agama attributed the decline to profit-taking, concerns over the proposed 30 percent Capital Gains Tax, weak banking stock sentiment, and global uncertainties. He noted, however, that the market rebounded following policy reassurances and remains positive year-to-date.
Agama also highlighted the recent migration of the equities settlement cycle from T+3 to T+2 as a major reform aligned with global best practices. He said the SEC plans to advance further to T+1 and eventually T+0 settlement, moves that would enhance liquidity, reduce risk, and position Nigeria as a leading investment destination in Africa.
