Economy
FMDQ Commercial Paper Market Hits N12.3tr
By Dipo Olowookere
Following an extended period marked by a dearth of activity, significantly weakened issuer interest and diminished investor confidence, the Nigerian Commercial Paper (CP) market may now have accomplished a full and clear revival as registered CP Programmes on the platform of FMDQ OTC Securities Exchange (FMDQ or the OTC Exchange) have crossed N1 trillion in value.
Stark opacity and extreme market irregularities which characterised the Nigerian CP market prior to the necessary release of the Central Bank of Nigeria (CBN) Guidelines on the Issuance and Treatment of Bankers’ Acceptances and Commercial Paper [2009] (the Guidelines), saw the sharp decline of the then market from trillions worth to zero levels by 2013.
There however, appears to be hope for businesses looking to tap the debt market for short-term capital and investors looking to diversify their portfolios, as the FMDQ-championed CP market reform since 2014, which was predicated on the back of the CBN Guidelines, has contributed, in no small measure, to the revival of the activities in the CP market; providing issuers a renewed opportunity to grow their businesses and meet short-term funding obligations as well as restoring the much-needed confidence required by investors to actively participate in the market.
Having made the decision to embark on key initiatives and strategies for the restoration of the Nigerian CP market back in 2014, FMDQ, in collaboration with the CBN and other relevant market stakeholders, relentlessly sought to realise this objective.
FMDQ released the FMDQ Commercial Paper Quotation Rules & Process in 2014, following the receipt of the CBN’s “No Objection” on same, and focused efforts and the requisite resources to organise and resuscitate the undeniably extremely important market.
In addition to providing what issuers and market participants have described as a reliable and efficient platform for registering, quoting and trading CPs, amongst other debt securities, FMDQ has taken the most crucial steps towards promoting transparency, governance, integrity and efficiency, thereby regaining the lost interest and confidence in the Nigerian CP market, by adopting initiatives specifically targeted at achieving the objective to revive the market.
Transparency, price discovery, liquidity, rollover governance (i.e. matured CPs are approved for rollover only with the consent of investors), efficient quotation processes are some of the transformation elements now evident in the Nigerian CP market today. Issuers and investors alike, are now able to effectively and sustainably contribute to the development of the nation’s debt markets.
Coming at a time when the OTC Exchange has recently affirmed its commitment towards the development of the Nigerian debt capital markets (DCM) and its subsequent deepening and integration to its international counterparts, one can expect that the successes recorded by the Nigerian CP market can be cascaded into other aspects of the Nigerian financial markets within FMDQ’s purview.
Indeed, FMDQ continues to validate its position as the foremost debt capital and OTC derivatives-focused exchange in the nation and the commendable strides made by the OTC Exchange in its product and market development agenda, notable of which include the launch of Short-Term Bonds process to enhance speed to market in bond issuance, the commencement of the Private Companies’ Bonds Noting Service and most recently, and the embarkment on initiatives aimed at the development of the Sukuk and Green Bonds/Sustainable Finance markets to support infrastructure and economic development in Nigeria, have begun to put the Nigerian DCM on the global map.
FMDQ has ably embraced the role of a change agent in the Nigerian financial market and it is expected that the OTC Exchange will not rest on it oars but continue to deploy initiatives to improve the prosperity of all categories of capital raising, investing and trading stakeholders – governments, businesses, and individuals – through its compelling activities in promoting access to capital, democratising investment, enhancing transfer of value and championing transfer of risk in the DCM.
CPs, which are short-term debt financing instruments issued for a period not exceeding two hundred and seventy (270) days, present a cost-effective and stable means of sourcing scarce capital when compared to traditional bank loans and enable businesses diversify their funding sources.
It is therefore, commendable that at such time when banks, non-bank financial institutions and small & medium-scale enterprises are striving to flourish despite the economic challenges in the country, the CP market can be looked to, to provide a viable, stable and cost-effective means for the achievement of their business objectives/goals.
In addition, by accessing the CP market, businesses can build confidence in their brand as well as raise their corporate profiles ahead of tapping the market for longer-term debt such as bonds in preparation for the impact of banks implementation of Basel 3 liquidity management principles.
As an investible asset class, CPs are often sought by investors to diversify their portfolios, thus, enhancing overall portfolio return, with their short-term nature permitting high relative return on investment, and allowing these investors to remain relatively liquid. Companies that have tapped the CP market have achieved significant reduction in their borrowing costs.
By Adedapo Adesanya
Nigeria’s pension fund assets surged by 22 per cent or N4.94 trillion to N27.45 trillion in 2025 from N22.51 trillion in 2024, according to the latest data from the National Pension Commission (PenCom).
The year-on-year growth underscores the resilience of the Contributory Pension Scheme (CPS), supported by steady employer and employee contributions, improved compliance and stronger investment returns across fixed income and equities.
The achievement capped a year of uninterrupted monthly expansion, reinforcing the sector’s role as one of Nigeria’s most stable pools of long-term domestic capital, despite a challenging macroeconomic environment, an industry analyst said.
Pension assets rose progressively from N22.86 trillion in January 2025 to N23.26 trillion in February and N23.38 trillion in March. By mid-year, assets had climbed to N24.62 trillion, before accelerating in the second half to N25.89 trillion in August, N26.66 trillion in October, N27.05 trillion in November and ultimately N27.45 trillion in December.
On a year-on-year basis, the industry expanded significantly. Total pension assets stood at N22.51 trillion in December 2024. The increase of N4.94 trillion over 12 months translates to approximately 22 per cent growth, reflecting both fresh contributions and investment returns.
The 12-month growth and broader annual expansion are driven by three primary factors: sustained pension contributions, investment income across asset classes, and the expansion of RSA funds.
Mandatory employer and employee contributions under the CPS continued to provide steady inflows, supported by improved compliance among corporate employers, and the expansion of coverage contributed to the accumulation of assets throughout the year.
PFAs benefited from improved yields in fixed income markets and positive performance in domestic equities during parts of the year. Both realised and unrealised gains contributed to the increase in assets under management, while the bulk of the growth came from Retirement Savings Account (RSA) Funds, particularly Funds II and III, which account for the largest share of contributors.
RSA Fund II, the default fund for active contributors below 50 years, grew from N9.24 trillion in December 2024 to N11.52 trillion in December 2025, an increase of N2.28 trillion.
RSA Fund III rose by about N1.10 trillion to N7.02 trillion, while RSA Fund IV, designed for retirees, also recorded significant growth, adding roughly N630 billion during the year.
These three funds collectively represent the core of pension savings within the system and were instrumental in driving the overall asset expansion.
A review of portfolio composition shows that federal government securities remained the dominant investment class, accounting for the largest share of pension assets. Holdings in FGN bonds and treasury bills continued to provide stability and predictable returns.
Corporate debt securities and money market instruments also contributed meaningfully, offering attractive yields amid tight monetary conditions. Meanwhile, domestic equities supported asset growth during market rallies, helping diversify returns.
The balanced allocation across fixed income, equities and other instruments helped cushion portfolios against volatility while sustaining steady growth in total assets.
With assets at N27.45 trillion, the sector continues to deepen its role in long-term domestic capital formation.
By Adedapo Adesanya
There was a 0.92 per cent correction at the NASD Over-the-Counter (OTC) Securities Exchange on Tuesday, February 17, pushed by declines in the share prices of 11 Plc and Central Securities Clearing System (CSCS) Plc.
11 Plc lost N28.80 during the session to trade at N263.00 per share compared with the previous day’s N291.80 per share, and CSCS Plc weakened by N4.84 to N75.25 per unit from N80.09 per unit.
Consequently, the NASD Unlisted Security Index (NSI) slid by 36.87 points to 3,964.55 points from 4,001.42 points, and the market capitalisation lost N22.06 billion to end N2.372 trillion compared with Monday’s value of N2.394 trillion.
Business Post reports that there were five price gainers yesterday, which could not lift the market.
They were led by FrieslandCampina Wamco Nigeria Plc, which appreciated by N5.89 to N77.24 per share from N71.35 per share, First Trust Mortgage Bank Plc grew by 8 Kobo to 90 Kobo per unit from 82 Kobo per unit, Geo-Fluids Plc increased by 8 Kobo to N3.58 per share from N3.50 per share, Lagos Building Investment Company (LBIC) Plc gained 7 Kobo to close at N3.48 per unit versus N3.41 per unit, and Acorn Petroleum Plc added 2 Kobo to sell at N1.33 per share compared with the previous day’s N1.31 per share.
During the session, the volume of transactions slid 91.0 per cent to 4.2 million units from 46.2 million units, the value of trades declined 88.4 per cent to N61.9 million from N532.8 million, and the number of deals shrank 2.3 per cent to 43 deals from 44 deals.
CSCS Plc remained the most active stock by value (year-to-date) with 31.9 million units exchanged for N1.9 billion, trailed by Resourcery Plc with 1.05 billion units worth N408.6 million, and Geo-Fluids Plc with 71.8 million units valued at N299.1 million.
The most traded stock by volume (year-to-date) remained Resourcery Plc with 1.05 billion units sold for N408.6 million, followed by Geo-Fluids Plc with 71.8 million transacted for N299.1 million, and CSCS Plc with 31.9 million units traded for N1.9 billion.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited suffered a 0.47 per cent decline on Tuesday a day after hitting all-time highs in its key performance barometers.
This was influenced by profit-taking in Nigerian stocks, as investors cashed out from the gains recorded in the past trading sessions.
According to data, the All-Share Index (ASI) was down by 899.50 points during the session to 189,362.94 points from the preceding session’s 190,262.44 points, and the market capitalisation decreased by N577 billion to N121.553 trillion from the N122.130 trillion achieved a day earlier.
Business Post reports that the sell-offs were intense yesterday as four of the sectors tracked ended in the red.
The consumer goods space improved by 2.54 per cent, but this was not enough to save Customs Street from crumbling when market activity ended at 2:30 pm.
The banking index was down by 3.69 per cent, the insurance space tumbled by 0.57 per cent, the industrial goods counter depleted by 0.50 per cent, and the energy sector dipped 0.06 per cent.
Despite the loss, the market breadth index remained positive after the bourse closed with 44 price gainers and 40 price losers, implying strong investor sentiment.
The trio of Mecure, SAHCO, and Zenith Bank gave up 10.00 per cent each to trade at N93.60, N117.00, and N80.55 apiece, while RT Briscoe depreciated by 9.95 per cent to N14.12, and Tripple G crashed by 9.77 per cent to N6.00.
Conversely, ABC Transport zoomed off by 9.94 per cent to N9.07, Zichis jumped 9.93 per cent to N13.06, Red Star Express appreciated by 9.87 per cent to N29.50, Meyer grew by 9.81 per cent to N22.95, and Japaul increased by 9.78 per cent to N3.03.
As for the activity chart, investors traded 1.2 billion stocks worth N60.2 billion in 86,607 deals compared with the 1.1 billion stocks valued at N64.0 billion transacted in 64,821 deals on Monday, representing a fall in the trading value by 5.94 per cent, and a surge in the trading volume and number of deals by 9.09 per cent and 33.61 per cent apiece.
Access Holdings ended the session as the busiest equity after the sale of 103.5 million units for N2.7 billion, Zenith Bank traded 93.1 million units valued at N8.0 billion, Japaul transacted 73.8 million units for N223.6 million, First Holdco exchanged 54.3 million units worth N2.6 billion, and Secure Electronic Technology sold 45.9 million units valued at N83.3 million.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn