The Nigerian capital market demonstrated significant strength and investor confidence in 2025, with companies raising a substantial over ₦753 billion through commercial paper (CP) issuances within a seven-month period. The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, disclosed this impressive figure, highlighting the market's crucial role in providing short-term financing for the real economy.
Vibrant Debt Market Fuels Economic Sectors
Dr. Agama, in a recent interview, stated that the vibrant commercial paper activity occurred between April and October 2025. He emphasized that the raised funds were pivotal in supporting the short-term working capital and operational needs of various critical sectors. "Commercial paper issuance remained vibrant, with over ₦753 billion raised to support short-term funding needs across diverse sectors, from manufacturing to energy and agriculture," the SEC boss explained.
This period also witnessed landmark transactions in the broader debt market, further underscoring its depth. Agama pointed to the launch of the ₦500 billion Climate Funding Special Purpose Vehicle (SPV) and the ₦200 billion Elektron Finance bond issuance. These deals reflect a growing investor appetite for infrastructure and sustainable finance investments in Nigeria.
Confidence in Regulation and Market Architecture
For the SEC DG, these financial figures represent more than just numerical achievements. "These figures are not just numbers; they represent confidence in our regulatory framework and the resilience of our market architecture," Agama noted. He positioned the strong CP performance as part of a wider wave of capital-raising activities approved by the Commission across debt, equity, and short-term instruments during the review period.
Agama linked the market's success to positive macroeconomic developments. He cited Nigeria's recent sovereign credit rating upgrade and its removal from the Financial Action Task Force (FATF) grey list as key signals that have renewed global investor confidence. "These achievements are not mere milestones; they signal renewed confidence in our economy. They will attract greater investment and enhance capital inflows," he asserted.
Navigating Volatility and Driving Future Reforms
The SEC helmsman also addressed the notable market correction experienced in November 2025, when the Nigerian Exchange lost approximately ₦6.54 trillion in market capitalization. He attributed this downturn to profit-taking ahead of the proposed 30% Capital Gains Tax, weak sentiment in banking stocks, and prevailing global uncertainties. However, he was quick to note a strong rebound following policy reassurances, maintaining that the market remains significantly positive year-to-date.
Looking forward, Agama stressed the importance of execution and innovation. With easing inflation creating new opportunities, he urged market operators to move from policy design to implementation. "Innovation cannot remain on paper. We must translate these frameworks into real products and accessible platforms," he urged.
He further highlighted critical market infrastructure improvements, such as the recent migration of the equities settlement cycle from T+3 to T+2. This reform, aligned with global standards, enhances liquidity and reduces risk. The SEC plans to advance this further to T+1 and ultimately T+0. "These changes, combined with ongoing efforts to deepen commodity trading and expand bond market participation, will position Nigeria as a leading investment destination in Africa," Dr. Agama concluded.
