6 Firms Raise N191.42bn Through Commercial Papers Amid High-rate Environment

Six Nigerian corporates have raised N191.42 billion through commercial paper issuances, leveraging short-term debt to fund working capital as high interest rates continue to shape funding strategies.

The deals quoted on the FMDQ Exchange highlight sustained investor appetite for high-yield CPs despite elevated borrowing costs.

The issuances underscore how large corporates are turning to the CP market for quick, flexible funding without diluting equity or taking long-term loans. Commercial papers, which are unsecured promissory notes with tenors of 30-270 days, have become a key tool for managing cash flow and refinancing obligations in Nigeria’s tight credit environment.

As at June 11, 2026, six companies have registered a total of N191.42 billion Commercial papers from January to June 2026 on the floor of the FMDQ Securities Exchange.

Market data from FMDQ showed that Miskay Boutique International Limited raised N2.12 billion. SKLD Integrated Services listed N7.30 billion CP on FMDQ, while Sycamore Integrated Solutions raised N6.89 billion.

Sunbeth Global Concepts raised N150.41 billion via CP, while Daraju Industries secured approval for a N22.68 billion CP quotation on the FMDQ and Accion Microfinance Bank raised N2.02 billion Commercial Paper.

Capital market analysts stated that the issuance of Commercial Papers (CPs) has become the new trend in the Nigerian capital market used by companies to finance their operations.

Speaking on the CP quotation, Group chief operating officer, FMDQ Group Plc,  Tumi Sekoni stated, “The quotation of the CPs on FMDQ Exchange reflects the continued broadening of Nigeria’s capital markets, and the critical role that short-term fixed income instruments play in providing efficient liquidity solutions for businesses across the economy.

By facilitating access to the CP market for a growing enterprise, FMDQ Exchange reaffirmed its commitment to making capital market financing accessible to corporate issuers at every stage of their growth. This transaction further underscores our resolve to provide a transparent, well-regulated, and inclusive marketplace that connects credible issuers with investors, while driving sustainable economic development across Nigeria.”

The chief operating officer of InvestData Consulting Limited,  Ambrose Omordion, noted that “when businesses require a cash injection to meet working capital requirements, they turn to commercial papers rather than borrowing from Nigerian commercial banks on a short-term basis. CPs are typically issued at a discount to face value, reflecting the prevailing market interest rates in the country. As a result, it is cheaper for companies to raise capital through the commercial paper markets than borrowing from commercial banks because bank lending comes with higher interest rates.”

The vice president of Highcap Securities Limited, David Adonri, said, “Commercial Papers (CPs) are short-term money market instruments used to finance working capital, while equities are long-term instruments used to finance fixed or long-term assets. They serve different purposes.

“The increasing issuance of CPs may be due to an increase in the need for short-term working capital finance rather than the necessity for project finance.”