Nigeria’s capital market raised more than 753 billion naira (US$480 million) between April and October, largely through commercial paper issuances, a sign of strengthening investor confidence in Africa’s largest economy, the head of the country’s markets regulator said.
Emomotimi Agama, director-general of the Securities and Exchange Commission (SEC), said the funds helped companies meet short-term financing needs, particularly in key sectors such as manufacturing, energy and agriculture, which have been under pressure from high borrowing costs and currency volatility.
Speaking in an interview on Sunday, Agama said the scale of fundraising reflected renewed trust in Nigeria’s capital market and its regulatory framework after years of subdued activity.
“These figures are not just numbers,” he said. “They reflect confidence in our rules and the strength of the market structure.”
Commercial paper short-term, unsecured debt typically used by companies to fund working capital has become an increasingly important financing tool in Nigeria as firms seek alternatives to expensive bank loans. Elevated interest rates and tighter credit conditions have pushed more companies toward the capital market for liquidity.
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Agama said the commercial paper issuances formed part of a broader wave of capital-raising activity approved by the SEC across debt, equity and short-term instruments during the seven-month period.
“Between April and October 2025, the commission approved significant transactions across different segments of the market,” he said. “This shows the market’s ability to mobilise funds needed for economic growth.”
Beyond short-term funding, Nigeria’s debt market also recorded several large transactions, pointing to rising interest in long-term investment themes such as infrastructure and sustainable finance. Agama cited the launch of a 500 billion naira climate finance vehicle and a 200 billion naira bond issued by Elektron Finance as notable deals during the period.
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Such transactions come as Nigeria seeks to plug large infrastructure gaps and finance climate-related projects amid mounting pressure from climate change and energy transition commitments. The government has increasingly looked to the capital market to help fund these needs, as public finances remain strained.
Investor sentiment toward Nigeria has improved in recent months, supported by policy reforms and progress on the macroeconomic front. Agama said recent upgrades to Nigeria’s credit outlook, alongside the country’s removal from the Financial Action Task Force (FATF) grey list, had helped boost confidence among both local and foreign investors.
Being taken off the FATF’s list of jurisdictions under increased monitoring has eased concerns about money laundering and terrorism financing risks, making Nigeria more attractive to international investors and financial institutions.
Nigeria’s capital market has, however, experienced bouts of volatility. Agama said the market recorded a downturn of about 6.54 trillion naira in November, driven largely by profit-taking ahead of a proposed 30 percent capital gains tax.
The proposal unsettled investors, triggering a sell-off, but the market later rebounded after policy reassurances from the authorities, he said.
Despite the setback, Agama said overall sentiment remains positive for the year, underpinned by strong corporate earnings in some sectors and expectations that easing inflation could support valuations.
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Nigeria has been grappling with high inflation and the fallout from sweeping economic reforms, including the removal of fuel subsidies and a foreign exchange overhaul. While the measures have weighed on households and businesses in the short term, authorities argue they are necessary to restore macroeconomic stability.
Agama urged market operators to take advantage of improving conditions by developing new financial products tailored to a changing economic environment, particularly as inflation shows signs of slowing.
“The time for passive observation is over,” he said. “We all have a responsibility to turn these opportunities into action and make the capital market a driver of inclusive growth.”
Analysts say a deeper and more liquid capital market will be crucial if Nigeria is to finance its development needs without relying excessively on public borrowing. With a population of more than 200 million and a growing private sector, the country’s demand for capital far outstrips what banks alone can provide.
For now, the surge in capital raising through commercial paper and bonds is being seen as an encouraging signal that confidence is returning and that Nigeria’s capital market is beginning to play a more central role in supporting economic growth.
