Corporate borrowers and state-backed entities paid as much as 20.00% to access Nigeria’s debt capital market in the first half of 2026. This underscores the elevated cost of long-term funding, driven by high interest rates and persistent inflation reshaping the fixed-income landscape.

A review of bond listings on FMDQ Securities Exchange and the Nigerian Exchange (NGX) by Nairametrics revealed that companies and government-backed entities secured hundreds of billions of naira. These funds were used to refinance existing obligations, finance infrastructure, strengthen liquidity, and fund expansion projects.

Coupon rates on fresh issuances ranged from 15.50% to 20.00%, highlighting the premium borrowers now pay to attract long-term capital across various sectors including banking, infrastructure, power, manufacturing, housing, and real estate.

This pricing contrasts sharply with older bonds still trading in the market, many of which carry coupon rates below current benchmark yields. These older instruments were issued during periods of lower interest-rate cycles.

Major Debt Issuances in H1 2026

Among the largest issuers were NBET Finance Company Plc, Lagos State, Access Bank Plc, UAC of Nigeria Plc, NREIT, Sunbeth Global Concepts Limited, Daraju Industries Limited, Champion Breweries Plc, Paras Energy Funding SPV Plc, and Veritasi Homes & Properties Plc, reflecting strong demand for capital.

NBET Finance Company Plc, a special purpose vehicle backed by the Nigerian Bulk Electricity Trading Plc, listed the single largest bond of H1 2026. It listed a combined N501.02 billion in Tranche A and Tranche B bonds at 17.50%, with proceeds aimed at clearing liquidity gaps across Nigeria’s power sector.

Access Bank Plc remained the biggest corporate issuer from the banking sector, listing a N193.83 billion Series 3 Senior Unsecured Bond at 15.50%. This bond is actively trading and offers investors a fixed-income option backed by one of Nigeria’s largest tier-one lenders.

Lagos State raised a total of N244.82 billion through two bond series. This included a N230.00 billion 10-year bond at 16.25% and a N14.82 billion 5-year Green Bond at 16.00%. The Green Bond is one of the state’s first instruments strictly tied to sustainable projects, such as clean transportation and climate resilience infrastructure.

UAC of Nigeria Plc listed a 7-year N54.03 billion bond at 17.35%. The funds are intended to refinance existing debt, fund capital projects, and support the integration of CHI Limited following its recent acquisition.

Sunbeth Global Concepts Limited quoted N150.41 billion in multi-series Commercial Papers under its issuance programme. Discount rates ranged from 19.00% to 19.30%, with implied yields between 21.00% and 23.50% across its 179-day, 270-day, and 364-day tranches. This issuance provides flexible short-term funding for working capital and general corporate operations.

Daraju Industries Limited quoted N22.68 billion in Series 31 and Series 32 Commercial Papers under its Commercial Paper Issuance Programme. This raised short-term funding for working capital and general corporate financing needs, though specific rates were not disclosed.

Nigeria Real Estate Investment Trust (NREIT) launched its Series 6 Offer, seeking to raise N30.4 billion by issuing 289.63 million units at N105 per unit under its N400 billion Issuance Programme. NREIT is a SEC-registered and Shariah-compliant REIT targeting attractive risk-adjusted returns from high-quality commercial real estate assets.

Champion Breweries Plc priced its debut bond at 19.50% for a 5-year Senior Unsecured Fixed Rate Bond worth N30.00 billion. This reflects the premium investors demand from newer corporate issuers outside the banking sector.

Paras Energy Funding SPV Plc, tied to an independent power producer, listed a 5-year N15.00 billion bond at 18.00%. This was one of the highest rates recorded in H1, intended to fund power generation expansion and refinance existing obligations.

Real estate developer Veritasi Homes & Properties Plc carried the highest coupon among major H1 issuers at 20.00% for a 3-year N10.00 billion debut bond. The funds are for ongoing housing projects, including Oyster Towers.

Other notable commercial paper issuances included DLM SPV Plc with a dual-tranche N9.00 billion Medium-Term Note, TeleAfrica Communications Limited with N3.31 billion, Accion Microfinance Bank Limited with N2.02 billion, SKLD Integrated Services Limited with N7.30 billion, Sycamore Integrated Solutions Limited with N6.89 billion, and Miskay Boutique International Limited with N2.12 billion.

Older Bonds Still Trading

For income-focused investors, several older corporate bonds remain actively listed and tradeable on NGX and FMDQ, offering a spread of coupon rates. These include the Access Bank 15.50% ACS Jul 2026 Bond, which is still trading with a 15.50% coupon and maturing this July.

The MTN Nigeria Series I Bond pays a fixed 13.00% coupon, representing a lower-yielding but highly liquid corporate name. Dangote Cement Series I Tranche C offers 13.50%, while its Series I Tranche B offers a lower 12.50%, reflecting its earlier pricing window.

The AXA Mansard Bond trades at 14.30%, and the Interswitch Africa 15.00% Bond matures in October 2026, offering investors a 15.00% coupon. These older bonds generally carry lower coupons than fresh 2026 issuances, a reflection of when they were priced relative to Nigeria’s interest rate environment at the time.

Investors seeking higher yields have gravitated toward newer issuances like Veritasi Homes (20.00%) and Champion Breweries (19.50%). However, these typically come with higher risk premiums attached to less established or first-time issuers.

Commercial papers, being short-term instruments, do not always carry publicly disclosed fixed coupons in the same way long-dated bonds do. Several bonds issued in H1 2026 carry maturities stretching into 2028, 2029, and 2030, including new issues from UAC of Nigeria, Access Bank, Lagos State, and Fidelity Bank.

The spread in coupon rates, from 12.50% on older Dangote Cement tranches to 20.00% on Veritasi Homes’ debut bond, illustrates how credit rating, sector, and issuer track record continue to shape borrowing costs on Nigeria’s debt capital markets. The H1 2026 bond issuances demonstrate sustained appetite from both government and corporate borrowers to tap long-term capital, even as elevated interest rates keep coupon costs high across new issuances.