Nigeria Capital Markets Record ₦15.9bn in Combined Bond and Commercial Paper Subscriptions
The Federal Government's February 2026 Savings Bond attracted ₦5.9 billion in subscriptions, while fintech firm Nairagram closed a ₦10 billion Commercial Paper issuance within 48 hours, signaling sustained investor appetite for Nigerian fixed-income instruments.
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Nigeria's capital markets recorded combined subscriptions totaling ₦15.9 billion across government and corporate debt instruments in February 2026, with the Federal Government's retail savings bond program and a fintech commercial paper issuance both attracting strong investor demand.
The Debt Management Office (DMO) announced that the February 2026 Federal Government of Nigeria (FGN) Savings Bond offer drew total subscriptions exceeding ₦5.9 billion across two tenors, according to allotment results published by Nairametrics. The retail bond program, designed to provide Nigerian citizens access to government securities, offered two- and three-year instruments at fixed interest rates paid quarterly.
Separately, Nairagram, a pan-African payments and financial infrastructure company, completed a ₦10 billion Commercial Paper (CP) issuance that was fully subscribed within 48 hours of market launch, This Day reported. The short-term debt instrument, typically issued at a discount with maturities ranging from 90 to 270 days, represents one of the largest CP raises by a Nigerian fintech firm in recent months.
Retail Bond Program Maintains Steady Demand
The FGN Savings Bond program continues to serve as a gateway for retail investors seeking fixed-income exposure with minimal entry barriers. The initiative, launched to democratize access to government securities, allows subscriptions starting from ₦5,000, significantly lower than the ₦50 million minimum for traditional FGN Bonds traded on the secondary market.
The ₦5.9 billion February subscription figure reflects consistent retail participation in government debt instruments amid Nigeria's elevated interest rate environment. The Central Bank of Nigeria (CBN) maintained its monetary policy rate at 27.50 percent in January 2026, creating a high-yield backdrop that has sustained demand for naira-denominated fixed-income securities across the maturity spectrum.
Monthly FGN Savings Bond offers have become a barometer for retail investor sentiment, with subscription levels fluctuating based on coupon rates relative to inflation expectations and alternative investment opportunities. The DMO typically announces coupon rates one week before each month's offer, allowing investors to assess returns against prevailing market conditions.
Fintech Sector Taps Corporate Debt Markets
Nairagram's successful ₦10 billion CP raise underscores growing institutional confidence in Nigeria's fintech sector, which has emerged as a significant participant in corporate debt markets. According to This Day, the issuance was "fully subscribed within 48 hours of going to market," indicating strong demand from money market investors seeking short-term paper from technology-driven financial services providers.
The company described itself as "a leading pan-African payments and financial infrastructure company" focused on deepening financial connectivity across the continent. The capital raise positions Nairagram to expand its operations amid increasing transaction volumes in Nigeria's digital payments ecosystem, which processed over ₦600 trillion in electronic transactions during 2025, according to Nigeria Interbank Settlement System (NIBSS) data.
Commercial Paper issuances by fintech and technology companies have increased in frequency since 2024, as these firms seek working capital and expansion funding through capital markets rather than traditional bank lending. The instruments typically offer yields 200 to 400 basis points above comparable Treasury Bills, compensating investors for credit risk while providing issuers with more flexible terms than bank facilities.
Fixed-Income Market Dynamics
The combined ₦15.9 billion in subscriptions across government and corporate instruments reflects segmented demand within Nigeria's fixed-income markets. Retail investors gravitate toward FGN Savings Bonds for their sovereign credit backing and predictable quarterly coupon payments, while institutional investors—including pension funds, asset managers, and banks—allocate to corporate paper for enhanced yields within their money market portfolios.
Nigeria's total domestic debt stock stood at ₦71.21 trillion as of September 2025, according to DMO data, with FGN Bonds and Treasury Bills comprising the bulk of outstanding securities. The retail savings bond program accounts for a small fraction of total government borrowing but serves strategic objectives of financial inclusion and domestic investor base expansion.
The corporate debt market remains considerably smaller, with outstanding Commercial Paper and corporate bond issuances estimated below ₦5 trillion. However, issuance activity has accelerated as more companies seek alternatives to bank credit, which carries interest rates exceeding 30 percent for prime borrowers in the current monetary policy environment.
Market analysts expect continued activity in both government and corporate debt segments through 2026, supported by the CBN's tight monetary stance and investor search for naira-denominated yield. The DMO has scheduled monthly FGN Savings Bond offers throughout the year, while corporate issuers are likely to maintain presence in money markets as funding needs persist across sectors.