How to Make Money Investing on Nigerian Commercial Papers

Investing in commercial paper (CP) has become one of the most attractive fixed-income options for Nigerian investors in 2025.

With the Monetary Policy Rate (MPR) staying elevated, yields on CPs remain high, giving investors better risk-adjusted returns compared to many other asset classes.

The minimum subscription is N5 million and N1,000 thereafter, with interest or discount income subject to 10% withholding tax.

Most CPs are issued in 180-day and 270-day tenors (there are some with 90-day or 360-day), though some carry slight variations in days, about five days more or less. Investors who choose to hold their investment until maturity earn returns based on the implied yield, while those who prefer to take their returns upfront subscribe at a discounted rate.

Between June and July 2025, corporates across banking, manufacturing, industrial goods, healthcare, and consumer goods tapped the market, offering investors double-digit yields.

Cutix Plc led the market with the highest 270-day implied yield at 28.5%, followed by SKLD at 27.5% whereas SKLD led the market with the highest 180-day implied yield at 24.65%, followed by Daraju at 24.50%.

This article breaks down some of the notable CPs issued in June and July 2025, highlighting the cash returns, implied yields, and discount rates for 180-day and 270-day tenors.

Understanding the yield dynamics 

Commercial papers are typically sold at a discount, meaning investors pay less than the face value upfront and receive the full value at maturity. However, depending on investor preference:

• Discounted Rate: Investors can take their returns upfront by subscribing at a lower entry cost, with the discount rate determining their effective income.
• Implied Yield: Investors who prefer to hold till maturity receive returns based on the implied yield, which compounds over the tenor of the investment.
• Cash Return: The actual naira amount earned by the investor at maturity.
• Brokerage Fees: Not included in this analysis. Some brokers charge up to 10%.

Below is a breakdown of how much an investor with N5 million would earn across these issuances in June and July 2025.

Note that the cash returns are gross without deduction of withholding tax and brokerage fees. Cash returns are computed with only implied yield and 360 days to prorate for a full year.

While the minimum subscription for commercial papers is N5 million, this article will illustrate returns using N1 million, since some stockbrokers and fintech platforms allow investors to participate through pooled investments

Cutix Plc – Targeted raise: N20bn 

Offer opened May 30 and closed June 17, 2025, to support short-term funding requirements. Rated A1 (DataPro).

• 270-day CP at 28.5000%: N 213,750.00 return on N1 million.

SKLD Integrated Services Limited – Targeted raise: N1.4bn 

Offer opened June 10 and closed June 17, 2025, to fund short-term working capital needs. Rated A1 (DataPro).

• 180-day CP at 24.6500%: N123,250.00 return on N1 million.
• 270-day CP at 27.5000%: N204,722.22 return on N1 million.

Champions Breweries Plc – Targeted raise: N10bn 

Offer opened June 27 and closed July 4, 2025, to support short-term working capital needs. Rated BBB+ (GCR) and BBB (Augusto).

• 176-day CP at 23.50%: N114,888.89 return on N1 million.
• 268-day CP at 26.0001%: N193,556.30 return on N1 million.

Johnvents Industries Limited – Targeted raise: N40bn 

Offer opened June 30 and closed July 4, 2025, to support short-term working capital requirements. Rated BBB+ (GCR, DataPro, and Augusto).

• 182-day CP at 24.2501%: N122,597.22 return on N1 million.
• 270-day CP at 26.75%: N200,625.00 return on N1 million.

Mecure Industries Plc – Targeted raise: N10bn 

Offer opened June 26 and closed July 2, 2025, to support short-term working capital and funding requirements. Rated A1 (DataPro) and A2 (GCR).

• 266-day CP at 26.00%: N192,111.11 return on N1 million.

FCMB Plc – Targeted raise: N70bn 

Offer opened May 27 and closed June 3, 2025, to fund short-term working capital needs. Rated A2 (GCR) and A- (Augusto).

• 180-day CP at 23.00%: N115,000.00 return on N1 million.
• 268-day CP at 24.7500%: N184,250.00 return on N1 million.

Coleman Technical Industries Limited – Targeted raise: N50bn 

Offer opened June 26 and closed July 2, 2025, to support short-term funding needs. Rated A- (GCR) and A- (Augusto).

• 180-day CP at 23.00%: N115,000.00 return on N1 million.
• 270-day CP at 24.75%: N185,625.00 return on N1 million.

Fidson Healthcare Plc – Targeted raise: N20bn 

Offer opened June 27 and closed July 4, 2025, to fund short-term working capital needs. Rated A (GCR) and A (Augusto).

• 182-day CP at 23.00%: N116,277.78 return on N1 million.
• 270-day CP at 24.75%: N185,625.00 return on N1 million.

Dangote Cement Plc – Targeted raise: N100bn 

Offer opened June 10 and closed June 13, 2025, to fund working capital and general corporate purposes. Rated AA+ (GCR) and AA (DataPro).

• 184-day CP at 23.00%: N117,555.56 return on N1 million.
• 268-day CP at 24.5001%: N182,389.63 return on N1 million.

Dangote Sugar Refinery Plc – Targeted raise: N100bn 

Offer opened June 23 and closed June 25, 2025, to support short-term working capital and funding requirements. Rated A- (DataPro) and A+ (Augusto).

• 174-day CP at 23.00%: N111,166.67 return on N1 million.
• 265-day CP at 24.50%: N180,347.22 return on N1 million.

Daraju Industries Limited – Targeted raise: N20bn 

Offer opened June 13 and closed June 23, 2025, to fund short-term working capital requirements. Rated BBB- (GCR).

• 181-day CP at 24.50%: N123,180.56 return on N1 million.

Payaza Africa Limited – Targeted raise: N20bn 

Offer opened July 30 and closed August 11, 2025, to support short-term working capital requirements. Rated A3 (GCR), A1 (DataPro), and Bbb (Augusto).

• 181-day CP at 22.20%: N111,616.67 return on N1 million.
• 272-day CP at 25.50%: N192,666.67 return on N1 million.

CIG Motors Company Limited – Targeted raise: N20bn 

Offer opened July 29 and closed August 4, 2025, to support short-term working capital requirements. Rated A’ (DataPro).

• 181-day CP at 23.00%: N115,638.89 return on N1 million.
• 272-day CP at 25.00%: N188,888.89 return on N1 million.

What you should know 

From June to July 2025, over N468 billion worth of commercial papers were floated by Nigerian corporates, offering investors returns between 21% and 28.5% depending on tenor and issuer. Short-term investors (180 days) earned moderate but steady returns, averaging 23% implied yield.

Medium-term investors (270 days) enjoyed slightly higher payouts, with yields climbing to as much as 28.5% in the case of Cutix Plc.

For investors seeking safe but rewarding short-term options, commercial paper remains one of the highest-yielding investments in Nigeria’s fixed-income space, but the company’s credit rating and financial statement must be considered and reviewed to avoid default risk, liquidity risk, or credit downgrade risk.

Overall, commercial papers in the review period offered attractive returns for investors across various tenors. While implied yields reward patience, discounted rates provide upfront cash flow.