Twenty-three companies approached Nigeria’s commercial paper market in the third quarter of 2026, targeting a combined ₦446.1 billion through 43 separate series, according to market data reviewed by Nairametrics from offer documents, issuer disclosures and FMDQ records.

The offers were made under commercial paper programmes with an aggregate registered size of about ₦1.98 trillion, highlighting the continued role of short-term debt instruments as an alternative source of corporate funding.

Commercial paper is generally used by companies to raise short-term funds, particularly for working capital and day-to-day business requirements. During the quarter, the 10 largest offers accounted for ₦350 billion, or about 78.5 per cent of the total issuance target tracked.

Most of the major transactions were structured to finance working capital, although some issuers used alternative structures designed to meet specific funding requirements.

Two of the larger transactions were arranged as non-interest commercial papers using Murabahah structures. Under this arrangement, a special purpose vehicle acquires specified commodities or assets and sells them to the underlying business on deferred payment terms at an agreed profit rate.

At the top of the third-quarter list was Pivot Integrated Energy Services Limited, which targeted ₦100 billion through three tranches under a ₦300 billion commercial paper programme. The offer opened on July 23 and closed on July 31, 2026.

The three tranches had tenors of 180, 270 and 364 days, with implied yields of 19.15 per cent, 22.79 per cent and 24.50 per cent respectively. The proceeds were earmarked for working capital financing.

Pivot subsequently completed the issuance at slightly above its target, raising ₦100.08 billion in its maiden commercial paper transaction. The company said the funds would support its operations in the trading, storage, distribution and supply of refined petroleum products in Nigeria and selected African markets.

Payaza Africa Limited and Sunny Owo Ventures Nigeria Limited each targeted ₦50 billion, placing them next in the Q3 ranking by target size.

Payaza offered two series under a ₦150 billion programme. Its offer ran from August 5 to August 7, with the 270-day series carrying an implied yield of 21.50 per cent and the 364-day series yielding 23.00 per cent. The proceeds were intended for working capital requirements.

Sunny Owo Ventures also targeted ₦50 billion through two series under a ₦300 billion programme. Its 270-day paper carried an implied yield of 22.75 per cent, while the 364-day series offered 24.75 per cent, according to the transaction details reviewed by Nairametrics.

Johnvents Industries Limited targeted ₦30 billion across three series under a ₦100 billion programme. Its securities had tenors of 180, 271 and 364 days, with implied yields of 19.00 per cent, 22.50 per cent and 24.50 per cent respectively. The funds were intended for short-term capital requirements.

Zeenab Foods Limited targeted ₦25 billion through a 364-day series under a ₦50 billion programme. The paper carried an implied yield of 24.50 per cent, while the proceeds were designated for working capital financing.

The company also had a related transaction during the quarter through Zeenab Foods Non-Interest Funding SPV Limited. That vehicle targeted ₦20 billion under a ₦200 billion programme through a single 364-day non-interest commercial paper arrangement. The structure was based on Murabahah, with agricultural commodities to be procured for subsequent sale to Zeenab Foods on deferred-payment terms.

VFD Group Plc targeted another ₦20 billion through two series under its ₦50 billion programme. The securities had tenors of 270 and 364 days, with implied yields of 21.50 per cent and 23.50 per cent respectively. The proceeds were intended for short-term working capital and general funding requirements.

TrustBanc Holdings Limited also targeted ₦20 billion through two series under a ₦100 billion programme. The 268-day paper carried an implied yield of 21.00 per cent, while the 364-day series had an implied yield of 23.50 per cent. The proceeds were directed towards short-term working capital needs.

Homeport Non-Interest Funding SPV Limited targeted ₦20 billion under a ₦100 billion programme. Its two series were structured as non-interest commercial paper under a Murabahah arrangement. The 270-day series carried a 21.50 per cent profit rate, while the 364-day series carried 23.50 per cent.

The tenth-largest offer was from Skymark Partners Limited, which targeted ₦15 billion across two series under a ₦200 billion programme. The offer opened on September 3 and closed on September 11.

Its 191-day series carried an implied yield of 21.50 per cent, while the 361-day series carried 24.50 per cent. The proceeds were earmarked for working capital requirements.

The activity recorded during the quarter reflects the continued use of Nigeria’s commercial paper market by companies seeking short-term funding outside conventional bank borrowing. Earlier FMDQ data had also shown commercial paper activity recovering during the first half of 2026, with outstanding commercial paper rising from ₦448.88 billion in May to ₦465.34 billion in June.

The Q3 transactions also illustrate the range of financing structures available to Nigerian corporates, from conventional commercial paper carrying implied yields to non-interest instruments based on Murabahah principles.

For companies, the market provides access to short-term financing, while investors receive securities with defined maturities and returns. The pricing of individual transactions, however, varies according to tenor, issuer and the terms of each offer.

With ₦446.1 billion in targeted issuance across 43 series during the quarter, commercial paper remained an important component of Nigeria’s short-term corporate funding market in Q3 2026.

Reporting by TalkNaijaMedia