Nigerian issuers pay up to 20% for H1 2026 bonds amid high rates
Nigerian state and corporate borrowers paid up to 20% to issue bonds in the first half of 2026, illustrating how stubborn inflation and elevated benchmark rates have radically reshaped the cost of long-term capital.
Nigerian corporates and state-backed entities paid as much as 20% to access the debt capital market in the first half of 2026. Coupon rates on new bond issuances ranged from 15.50% to 20.00%, a steep premium over older fixed-income instruments still trading in the market.
The pricing divergence is stark. Older issues from established names like Dangote Cement and MTN Nigeria carry coupons between 12.50% and 13.00%, reflecting a lower interest-rate environment when they were priced. Meanwhile, actively traded legacy bonds from Interswitch Africa and AXA Mansard offer 15.00% and 14.30% respectively, still sitting well below the cost of new capital. Investors hunting for yield have shifted to newer issuances, though these carry significantly higher risk premiums.
The heaviest borrowers were concentrated in the banking, infrastructure, and power sectors. NBET Finance Company Plc, a vehicle backed by the state electricity trader, led the market with a N501.02 billion issuance at 17.50% to clear power sector liquidity gaps. Lagos State raised N244.82 billion across a 10-year bond at 16.25% and a 5-year Green Bond at 16.00%, while Access Bank priced a N193.83 billion senior unsecured bond at 15.50%.
Outside the banking and sovereign-backed space, borrowing costs climbed further. UAC of Nigeria Plc raised N54.03 billion at 17.35% to refinance debt and fund its CHI Limited acquisition. Real estate developer Veritasi Homes & Properties Plc paid the highest coupon among major issuers at 20.00% for its N10 billion debut bond, followed by Champion Breweries Plc at 19.50% for its own first issuance. Power producer Paras Energy Funding SPV Plc listed a N15 billion bond at 18.00%. Short-term commercial paper markets saw even steeper implied yields, with Sunbeth Global Concepts Limited reaching 23.50% on 364-day paper.
The H1 figures show that while borrower appetite for long-term capital remains intact, the macroeconomic environment is strictly separating issuers by credit quality. DLM SPV Plc achieved a premium pricing on a N9 billion AAA-rated note, underscoring that top-tier credit still commands a structural advantage. With new bonds stretching maturities out to 2030, the wide spread between legacy debt and new debuts signals that track record and sector risk are now the decisive factors in Nigerian debt pricing.
