Corporate borrowers and state-backed entities paid coupon rates as high as 20% to access Nigeria’s debt capital market in the first half of 2026, reflecting the elevated cost of long-term funding amid high interest rates and persistent inflation.
A review of bond listings on FMDQ Securities Exchange and the Nigerian Exchange shows that companies and government-linked vehicles raised hundreds of billions of naira to refinance existing obligations, finance infrastructure, strengthen liquidity and support expansion projects across banking, power, manufacturing, housing and real estate.
High Coupons Reflect Tough Funding Conditions
Fresh issuances carried coupon rates ranging from 15.50% to 20.00%, a sharp contrast with older bonds still trading in the market that were priced during lower interest-rate cycles and now offer more modest yields.
The pricing underscores the premium borrowers must pay to attract long-term capital in the current environment.
Major Issuers and Amounts
The largest single listing came from NBET Finance Company Plc, a special purpose vehicle linked to the Nigerian Bulk Electricity Trading Plc, which raised N501.02 billion through two tranches at 17.50% to address liquidity gaps in the power sector.
Access Bank Plc listed a N193.83 billion Series 3 Senior Unsecured Bond at 15.50%, remaining one of the most significant corporate issuers from the banking sector.
Lagos State Government raised a combined N244.82 billion, including a N230 billion 10-year bond at 16.25% and a N14.82 billion five-year Green Bond at 16.00% earmarked for sustainable projects.
Other notable issuances included UAC of Nigeria Plc (N54.03 billion at 17.35%), Champion Breweries Plc (N30 billion at 19.50%), Paras Energy Funding SPV Plc (N15 billion at 18.00%), and Veritasi Homes & Properties Plc (N10 billion at 20.00% the highest coupon among major H1 issuers).
Nigeria Real Estate Investment Trust (NREIT) sought N30.4 billion through its Series 6 offer, while Sunbeth Global Concepts Limited raised N150.41 billion via multi-series commercial papers with implied yields reaching as high as 23.50%.
Smaller issuers such as TeleAfrica Communications, Accion Microfinance Bank and SKLD Integrated Services raised amounts below N10 billion.
Older Bonds Offer Lower Yields
Several older corporate bonds remain actively traded, providing investors with lower-coupon alternatives. These include Access Bank’s 15.50% bond maturing in July 2026, MTN Nigeria’s Series I bond at 13.00%, Dangote Cement tranches at 12.50% and 13.50%, AXA Mansard at 14.30%, and Interswitch Africa’s 15.00% bond.
The wide spread between older lower-yielding instruments and new high-coupon issuances highlights how credit rating, sector risk and issuer track record continue to shape borrowing costs.
Outlook for the Market
The first-half activity demonstrates sustained appetite from both government and corporate borrowers for long-term capital, even as elevated interest rates keep funding costs high. Investors seeking higher yields have gravitated toward newer issuances, while those prioritising relative safety continue to favour established names with lower but more predictable coupons.
The elevated cost of debt is expected to remain a defining feature of Nigeria’s fixed-income landscape in the near term as issuers navigate the challenging macroeconomic environment.
