The outstanding stock of corporate bonds on Nigeria's FMDQ exchange reached N2.30 trillion in June 2026, marking a significant expansion in the local fixed-income market despite a challenging macroeconomic backdrop.
The growth in the corporate debt universe comes as leading issuers faced steep pricing, with some paying yields of up to 20% to raise capital in the first half of the year.
74 trillion in demand, corporate issuers are navigating a tighter liquidity environment.
The divergence between sovereign and corporate borrowing costs highlights the risk premium investors are demanding from private sector entities.
While the Federal Government of Nigeria (FGN) continues to attract substantial demand, with H1 2026 allotments reaching N929.3 billion against N1.74 trillion in demand, corporate issuers are navigating a tighter liquidity environment.
The high cost of capital for corporates suggests that credit spreads remain wide, reflecting concerns over currency volatility and inflationary pressures.
Trading activity in the sovereign segment remains robust, providing a liquid benchmark for the broader market.