Corporate bond market hits N2.30trn on FMDQ

Nigeria’s corporate bond market maintained its growth momentum in June 2026, with the value of outstanding corporate bonds on the FMDQ Exchange rising to N2.30 trillion, reinforcing its position as the largest segment of the country’s non-sovereign debt market.

The latest FMDQ Exchange Fixed Income Market Report showed that outstanding corporate bond value increased marginally from N2.29 trillion recorded in May, despite a slowdown in new bond issuance during the month.

The report indicated that corporate bonds continued to dominate Nigeria’s debt capital market, accounting for the largest share of admitted non-sovereign securities on the Exchange.

Outstanding corporate bond value rose sharply from N1.81 trillion in March to a record N2.34 trillion in April following a wave of large corporate issuances before moderating slightly to N2.30 trillion in June.

New corporate bond listings stood at N15 billion in June, recovering from the absence of new issuances in May but remaining significantly below the N531.89 billion raised in April, the strongest issuance month during the review period.

The report also showed signs of recovery in the commercial paper (CP) market.

Outstanding commercial paper increased to N465.34 billion in June from N448.88 billion in May, extending a rebound that began after the market fell to N319.51 billion in April.

However, fresh commercial paper issuance weakened considerably, with new listings declining to N36.79 billion in June from N189.15 billion in May, although remaining above the N10 billion recorded in April.

The average tenor of quoted commercial papers lengthened to 290 days in June from 277 days in May, reflecting continued investor preference for medium-term instruments.

Subnational bonds remained unchanged during the period, with outstanding value holding steady at N661.06 billion following Lagos State’s N244.82 billion dual bond issuance earlier in the year.

Funding costs also continued to ease.

The average commercial paper discount rate declined to 19.18 per cent in June from 19.78 per cent in May, extending the downward trend from 22.49 per cent recorded in June 2025.

Discount rates for 91 to 180-day commercial papers eased to 19.44 per cent, while 181 to 364-day instruments fell to 19.11 per cent.