Dangote Cement leads as Nigerian companies issue N90.01bn in commercial papers


As of January 10, 2024, Nigerian companies have collectively issued commercial papers totalling about N90.01 billion, marking a significant trend in the nation’s corporate finance landscape.


Data compiled from FMDQ Group indicates a surge in commercial paper issuances across multiple entities, showcasing a robust engagement in capital-raising activities.

Leading the drive, Dangote Cement, a key player in Nigeria’s corporate sector, issued N3.42 billion and N56.59 billion as Series 10 and 11, respectively, under its N300 billion commercial paper issuance program.

Similarly, Rand Merchant Bank contributed N25 billion under Series 7 of its N80 billion commercial paper issuance program.

The extensive list of issuances also encompasses Bigoz Logistics Limited’s issuance of N150 million as Tranche C of Series 2 within its N20 billion CP issuance program.

Additionally, SKLD Integrated Services Limited issued N320 million in Series 6 and 7 under its N2 billion commercial paper program, alongside Robust International Limited’s issuance of N210 million and N2.56 billion as Series 13 and 14 CPs within its N30 billion issuance program.

FastCredit emerged as another contributor, issuing N2.18 billion as Series 4 commercial papers under its N5 billion commercial paper issuance program.

Further adding to this dynamic landscape, FMDQ announced the admittance of Afrinvest (West Africa) Limited’s new N25 billion commercial paper issuance program.

This surge in commercial paper issuances underscores the increasing reliance of Nigerian corporates on the debt market as a viable avenue for raising capital.

In 2023 alone, corporate entities issued approximately N1.5 trillion worth of commercial papers, demonstrating the growing significance of this financial instrument in Nigeria’s corporate financing ecosystem.

Prominent companies like MTN Nigeria, Dangote Cement, and Flour Mills of Nigeria played pivotal roles in these issuances, collectively accounting for nearly half of the total CP issuances in 2023.

Dangote Cement expanded its commercial paper program from N150 billion to N300 billion last year, issuing approximately N281.79 billion under this extended program.

Commercial papers are increasingly favoured by Nigerian businesses due to their cost-effectiveness in fundraising, particularly in light of the high interest rates imposed by banks amidst unchanged monetary policy rates.

Investors are drawn to the instruments for their attractive returns over short periods and their perceived lower risk.

The upsurge in commercial paper issuances reflects a dynamic shift in the Nigerian financial landscape, signalling a heightened reliance on these instruments for corporate fundraising endeavours.

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