Five top-tier companies, including MTN Nigeria, Citibank, and C&I Leasing, are set to redeem a combined N94 billion in commercial paper (CP) maturities in July, in a development expected to influence near-term liquidity trends in Nigeria’s financial system.
The repayments span across multiple sectors telecommunications, financial services, healthcare, and leasing. C&I Leasing had lead with N8.1 billion if its Series 4 commercial paper maturing on July 1,
The note, issued in October 2024 under its N50 billion CP programme, had a face value of N8.14 billion and a tenor of 270 days. Since registering its N50 billion commercial paper programme with the FMDQ in 2022, C&I Leasing has raised over N22 billion across four series with increasing demand for the company’s Commercial Notes.
In the last 5 years, the company has issued a series of commercial papers and corporate bonds, which had all been oversubscribed indicating an excellent show of confidence from the market in the board and management’s initiatives to improve the company’s fortunes.
FSDH Merchant Bank followed closely, with its Series 1 note, valued at N5.70 billion, which matured on July 3, 2025. The issuance formed part of the bank’s ongoing N40 billion CP programme, aimed at supporting its working capital and short-term liquidity management needs.
This week, MeCure Industries, a pharmaceutical and diagnostics giant, will be paying out N6.29 billion of its Series 2 paper which was issued in October 2024, further expanding the footprint of non-financial corporates in Nigeria’s short-term debt market.
Citibank Nigeria, one of the most active corporate issuers so far this year, will have its Series 3 CP mature on July 29, 2025. The issuance, worth N46.73 billion, was part of the bank’s larger N300 billion programme and had a 265-day tenor.
Also, MTN Nigeria, the country’s largest telecoms operator, is set to round off the month’s CP maturities with the redemption of its Series 12 note on July 30, 2025. The paper, issued on November 7, 2024, carried a face value of N27.5 billion, a 265-day tenor, and an implied yield of nearly 29 per cent.
Market analysts opine that the maturity profile signals growing corporate dependence on the short-term debt market for liquidity management, with the July redemptions offering an early glimpse into second-half liquidity repositioning by Nigerian corporates.
Despite the double-digit rates, CP has been the choice of many corporates in need of funding, favouring it above commercial credit as interest rates remain high. There has also been a spike in investors’ appetite towards CPs as they offer higher returns compared to bonds and treasury bills which range between 16 and 18 per cent in yields.
In the first quarter of 2025, data from the FMDQ showed that about 25 companies had raised a total of N330.3 billion through CP to fund their immediate financial needs, highlighting the renewed investor appetite for the financial instrument.
According to FMDQ, Access Bank raised N82.82 billion. Dangote Sugar Refinery Plc (N84.01 billion), Stanbic IBTC Capital Limited (N25.15 billion), and Daraju Industries Limited (N2.07 billion).
Other companies, including Valency Agro Nigeria, C&I Leasing, Hillcrest Agro-Allied Industries, Mycredit Investment, Capital Saga Technology, Russelsmith Nigeria, UACN, Mecure Industries, Skymark Partners, Robust International Commodities, A.R.N. Foods, Johnvents Industries, Precise Lighting, VFD Group, Lekki Gardens Estate, Sultiva Wakalah SPV, Zeenab Foods, and Smart Residences, raised amounts ranging from N0.85 billion to N22.70 billion.
Commenting on the company’s raising funds through CP, MTN Nigeria’s Chief Executive Officer, Karl Toriola, said, “the CP Issuance is part of our established funding strategy and would not have been possible without the unwavering support of the investor community, as well as our advisers.”
