The landscape of capital raising in Nigeria has witnessed a notable shift as corporates turn to Commercial Papers and Bonds, finding them increasingly favorable amid a waning interest in Initial Public Offerings (IPO). This shift was prominently highlighted during the recent Annual General Meeting (AGM) and presentation of the 2022 annual report by the Association of Issuing Houses of Nigeria (AIHN) in Lagos.

Outgoing President Ike Chioke unveiled significant insights, revealing that the federal government and private entities successfully raised N3.44 trillion through Corporate Bonds and Commercial Paper (CPs) issuance over the past two years. Reflecting on the achievements, he noted that capital-raising activities in the local environment built upon the successes recorded in 2021. Notably, 333 deals valued at about N3.44 trillion have been executed over the last two years in the local debt market, showcasing the robust participation of corporates in the bonds and commercial paper issuance space, including state-sponsored instruments.

He highlighted noteworthy events in the corporate sphere, emphasising Dangote Industries Limited’s successful closure of its Series 1, dual-tranche bond issue at N187.59 billion under its N300 billion bond issuance program in August 2022. He went on to mention the subsequent Series 2 bond issuance of up to N112.42 billion in December 2022, marking the largest corporate bond in the Nigerian capital market.

“MTN Nigeria Communications Plc also made history by establishing a N200 billion issuance program and issuing its N115 billion Series 1 Bond in September 2022. This transaction represents the first bond issuance by a Nigerian telecommunications company,” Chioke stated.

In addition to illuminating significant market events, Chioke provided insights into AIHN’s financial performance, reporting a total income of N85.41 million in 2022—a notable increase from the N64.78 million generated in 2021. The group achieved an income surplus of N53.98 million in 2022, reflecting a substantial rise from the N36.33 million posted in the 2021 financial year. Chioke emphasised that this growth underscores AIHN’s commitment to fiscal responsibility and efficient resource management.

Looking ahead, Chioke encouraged investment banks to embrace innovation and consider increased participation in the global technology revolution to fortify their position and support future growth.