Firms Cut Back On Bank Loans, Raise N1.3trn Through Commercial Papers

Nigerian companies are increasingly turning to the capital market to finance their operations, raising more than N1.3 trillion through commercial papers in the first nine months of 2026 as bank lending rates above 30 per cent intensify pressure on working capital and business profitability.
The shift highlights the growing difficulty businesses face in accessing affordable credit amid tight monetary conditions, despite the Central Bank of Nigeria’s (CBN) decision to reduce its benchmark Monetary Policy Rate (MPR) from 26.5 per cent to 23 per cent in September.
With commercial paper offering an alternative source of short-term funding, companies are increasingly approaching investors t...