The great credit shift: Why commercial papers are replacing bank loans in Nigeria

AI Summary

The Nigerian debt market is seeing a surge in Commercial Paper issuances as corporate borrowers increasingly avoid traditional bank loans due to high capital costs linked to inflation. This trend signals a significant shift in credit financing within Nigeria's corporate sector.

Seven months into 2026, the Nigerian debt market is witnessing an unprecedented surge in Commercial Paper (CP) issuances. It is becoming increasingly clear that corporate borrowers are snubbing traditional bank loans. If you’re wondering why, the answers aren’t far-fetched. Chief among them is the cost of capital: in a bid to hedge against stubborn inflation, […] The post The great credit shift: Why commercial papers are replacing bank loans in Nigeria appeared first on Nairametrics.