With the primary equities market experiencing a prolonged chill, Nigerian corporate issuers are aggressively shifting their gaze toward the short-term debt capital market.
The cooling of the Initial Public Offering (IPO) landscape – stifled by macro headwinds, stringent regulatory bottlenecks, and muted investor appetite – has forced companies to re-evaluate their capital raising strategies, favouring alternatives like the Commercial Paper (CP) market.
The NGX All-Share Index has gained 57.27 percent year-to-date (YtD), equities market capitalisation is approaching N157 trillion, while market turnover has exceeded N4.3 trillion, reflecting strong investor participation and confidence.
Despite this positive, companies preference for Commercial Papers over the equities market has become a massive trend for corporate finance teams across Nigeria.
Government policy can stimulate IPOs …
