Nigeria’s commercial paper market recorded a sharp increase in activity in September 2026, as the value of new commercial papers quoted on the Exchange rose by 406.65 per cent to N129.37 billion from N25.53 billion in August.

Data from the September 2026 financial markets report showed that 14 commercial papers valued at N129.37 billion were quoted during the month, representing an increase of N103.84 billion based on the reported figures.

The growth in new quotations also lifted the total outstanding value of commercial papers by 14.74 per cent, or N73.86 billion, to N574.99 billion in September from the preceding month. The increase occurred as the value of new commercial papers quoted during the period exceeded maturities worth N55.51 billion, according to the report.

Commercial papers are short-term debt instruments through which companies raise funds to finance working capital, meet operating expenses and address other short-term funding needs. They provide businesses with an alternative to conventional bank borrowing and allow eligible issuers to access investors through the capital market.

FMDQ Exchange provides a platform for the quotation and trading of eligible debt instruments, enabling issuers to access the domestic financial market and investors to participate in corporate debt offerings.

The September figures indicated a rebound in activity following the sharp decline recorded in August, when commercial papers valued at N25.53 billion were quoted on the Exchange.

Beyond the commercial paper market, the report showed that the total outstanding value of non-sovereign bonds declined by 0.34 per cent, or N10.09 billion, month-on-month to N2.95376 trillion.

The decline in non-sovereign bonds contrasted with the expansion recorded in commercial papers, which are generally used to meet shorter-term financing requirements, while bonds are commonly issued to raise funds over longer periods.

Alook at the companies whose commercial papers were quoted on FMDQ Exchange in September 2026 showed that Ojaja Pan Africa Limited floated N25.53 billion through FMDQ commercial papers within the period.

The company raised N25.53 billion through the quotation of three series of commercial papers on the FMDQ Exchange, providing the company with access to short-term funding from the Nigerian debt market.

The commercial papers, valued at N25.53 billion, were quoted under the company’s N100 billion commercial paper issuance programme.

The quotation comprised Series 1 commercial papers valued at N4.80 billion, Series 2 worth N1.36 billion and Series 3 amounting to N19.37 billion.

The three series add up to N25.53 billion.
The proceeds will support the company’s working capital requirements and expansion across its business segments.
Operators said the transaction highlighted the role of the commercial paper market in providing companies with an alternative source of short-term financing outside traditional bank lending.
Team Lead, Finance Research Department at InvestingPort, Uwem Olubummo, said the sharp increase in commercial paper issuance in September is an indication that more companies are turning to the short-term debt market to meet working capital needs, finance inventory purchases and sustain daily operations.
Olubummo said commercial papers offer businesses an alternative to bank borrowing, particularly in an environment of high financing costs or limited access to conventional credit.