On February 3, 2026, Nairagram—a pan-African payments infrastructure company processing over $2 billion annually across 37 African countries—launched a ₦10 billion commercial paper (CP) issuance after receiving Central Bank of Nigeria (CBN) approval on January 26.
By February 4, the entire offering was fully subscribed. Completion was finalized on February 5.
48 hours. ₦10 billion ($6.8 million). Fully subscribed.
For context, that’s faster than most Nigerian startups can close a $500K seed round. And it happened not through venture capital, but through Nigeria’s public debt market—pension funds, insurance companies, asset managers, and institutional investors who demand one thing above all else: predictable cash flows.
Nairagram’s success isn’t an anomaly. It’s part of a structural shift in how Nigeria’s most credible tech companies are accessing capital. Instead of chasing VC rounds at inflated valuations, they’re tapping commercial paper markets where institutional investors pay 19-23% annual yields for short-term debt (30-364 days) backed by real revenue.
And the market is booming:
- ₦1.61 trillion in commercial paper issued in 2025 (despite 27.5% CBN interest rates)
- ₦8.19 trillion in total registered CP programs (FMDQ data)
- ₦7.23 trillion in quoted CPs as of 2025
- February 18, 2026: Nigerian Exchange (NGX) listed its first-ever commercial paper—Dangote Cement ₦119.87B under a ₦500B program
For years, Nigerian tech funding meant: raise from international VCs, burn through growth capital, hope for exit. Now, a different model is emerging: build real infrastructure, generate predictable cash flows, access institutional debt, scale profitably.
Nairagram isn’t the only tech company doing this. But it’s the clearest example of what happens when you build boring, profitable payment rails instead of sexy, cash-burning consumer apps.
As TechMoonshot previously covered, when Nairagram raised that ₦10 billion three weeks ago, it exposed a harsh truth: institutional investors back cash flows, not hype. And in a market where Alerzo defaulted on ₦4.38 billion to Moniepoint the same month, the contrast couldn’t be starker.
What Commercial Paper Actually Is (And Why Tech Companies Are Using It)
Commercial paper is an unsecured promissory note with a maturity between 30 and 364 days. Think of it as corporate IOUs sold to institutional investors.
Here’s how it works:
For the issuer (Nairagram, Dangote, Daraju Industries):
- Raise short-term capital (working capital, expansion, operations)
- No collateral required (unlike bank loans)
- Faster than equity (weeks vs. months)
- Cheaper than bank loans (19-23% CP yields vs. 30%+ bank rates at 27.5% CBN MPR)
- No equity dilution
For the investor (pension funds, insurance companies, asset managers):
- Higher yields than government bonds (19-30% vs. lower bond rates)
- Short duration (30-364 days means capital returns quickly)
- Credit-rated issuers (SEC-approved, FMDQ-listed, GCR-rated)
- Institutional-grade compliance (audited financials, transparent disclosures)
Regulatory framework:
- Investments and Securities Act (ISA) 2025: SEC pre-approval mandatory for CP issuances
- FMDQ Commercial Paper Rules (Nov 2024): Market-specific rules for registration, quotation, trading
- Companies and Allied Matters Act (CAMA) 2020: Corporate incorporation requirements
- SEC New Rules (2024): Unified framework for asset-backed, clean, and Shariah-compliant CPs
According to Oluwafemi Adetuberu, Fixed Income Analyst at Rhodium Capital, issuers are responding to tighter credit conditions:
“CPs offer a cheaper source of funds compared to bank loans priced off the 27.5% MPR.”
With the Central Bank of Nigeria’s Monetary Policy Rate stuck at 27.5%, bank loans often exceed 30% when fees and risk premiums are included. Commercial paper at 19-23% is genuinely cheaper—if you can access it.
And that’s the key: only credible, cash-generating businesses can access CP markets. Institutional investors don’t buy hype. They buy audited cash flows.
Who’s Actually Issuing: Blue-Chip Corporates + Profitable Tech
Nigeria’s CP market is dominated by high-grade issuers:
Traditional blue-chips:
- Dangote Cement: ₦119.87B CP listed on NGX (Feb 18, 2026)
- BUA Group: Cement, sugar, real estate
- MeCure Industries: Series 5 CP at 22.54% yield
- Daraju Industries: ₦5B Series 3 CP (Feb 2026), A3 short-term rating
Commercial banks & financial institutions:
- GTBank, Access Bank, First Bank, Zenith Bank (frequent issuers)
And now, profitable tech companies:
- Nairagram: ₦10B CP (Feb 2026), plans ₦50B total in 2026
- Likely next: Moniepoint, Flutterwave, other infrastructure fintechs (if they pursue CP over equity)
What do these issuers have in common?
- Audited financials (SEC requirement)
- Predictable cash flows (revenue, not just GMV)
- Credit ratings (GCR, Agusto & Co., others)
- Institutional credibility (not first-time founders)
Nairagram’s profile:
- $2 billion+ in annual payment volume (37 African countries)
- Operational across Nigeria, Ghana, Senegal, Côte d’Ivoire, Cameroon, Kenya, Uganda
- Real revenue from transaction fees, FX spreads, payment processing
- CBN-licensed (regulatory compliance)
- Audited financials (required for CP issuance)
This is why Nairagram could raise ₦10 billion in 48 hours. Institutional investors saw the cash flows and said yes.
The Alerzo Contrast: Why Some Tech Companies Can’t Access Debt
On the same month Nairagram raised ₦10 billion, Alerzo—a B2B e-commerce startup that raised $20 million in equity—defaulted on ₦4.38 billion owed to Moniepoint Microfinance Bank.
Alerzo took a ₦5 billion loan in January 2025 for working capital. Thirteen months later, it had repaid only ₦619 million—an 88% default rate. Now it’s liquidating its delivery fleet (buses, motorcycles) to pay back creditors.
The contrast is instructive:
Alerzo:
- B2B e-commerce (low-margin distribution, 2-5% gross margins)
- Unit economics didn’t work (logistics costs exceeded revenue)
- Raised $20M in equity but burned through capital
- Couldn’t service debt (₦5B loan → ₦4.38B default)
- Now liquidating assets
Nairagram:
- Payment infrastructure (high-margin transaction fees, FX spreads)
- Real revenue from 37 countries
- Predictable cash flows (recurring transaction volume)
- Raised ₦10B in debt (fully subscribed in 48 hours)
- Plans ₦50B total in 2026
Why the difference?
Alerzo’s business model was fundamentally unprofitable. You can’t service debt when your gross margins (2-5%) don’t cover operating costs (logistics 10-15%, warehousing, spoilage, inventory financing). Equity can paper over bad unit economics for a while. Debt can’t.
Nairagram’s business model generates cash. Every transaction processed generates a fee. Every FX conversion generates a spread. Multiply that across $2 billion in annual volume, and you have predictable, recurring revenue that can service debt.
Institutional investors understand this. That’s why they’ll lend to Nairagram at 19-23% but wouldn’t touch Alerzo at any price.
The Institutional Investor Perspective: “Show Me the Cash Flows”
Nigeria’s commercial paper market is dominated by institutional investors:
- Pension Fund Administrators (PFAs) — managing ₦trillions in retirement savings
- Insurance companies — seeking yield above government bonds
- Asset managers & fund managers — running money market funds
- Corporate treasuries — deploying idle cash for short-term returns
These investors have fiduciary duties. They can’t chase hype. They need:
- Credit ratings (A3, BBB-, investment-grade)
- Audited financials (verified revenue, cash flows, profitability)
- SEC approval (regulatory compliance)
- Short duration (30-364 days to limit risk)
- Predictable repayment (cash flows exceed debt service)
According to Alliance Law Firm, CP issuances typically require minimum investments in the millions of naira—beyond most individual retail investors.
That’s by design. Institutional money is patient, professional, and disciplined. It doesn’t invest in stories. It invests in cash-generating assets.
Oluwafemi Adetuberu (Rhodium Capital): “Despite the recent moderation in inflation and bond yields, we expect risk-tolerant investors to continue favouring commercial papers due to their attractive premiums relative to government securities.”
Translation: If CPs yield 19-30% and government bonds yield less, institutional investors will keep buying CPs—as long as issuers can prove they’ll repay.
Nairagram proved it. Dangote Cement proved it. Daraju Industries proved it.
Alerzo couldn’t.
The NGX Milestone: First-Ever Commercial Paper Listing (Feb 18, 2026)
On February 18, 2026, the Nigerian Exchange (NGX) admitted its first-ever commercial paper to trading—a watershed moment for Nigeria’s debt capital market.
The issuer: Dangote Cement Plc, Africa’s largest cement producer.
The transaction:
- Series 1 CP: ₦19.95 billion, 181-day tenor, matures May 20, 2026
- Series 2 CP: ₦99.92 billion, 265-day tenor, matures August 12, 2026
- Total: ₦119.87 billion under a ₦500 billion CP Issuance Programme
Why this matters:
Before February 2026, commercial paper traded over-the-counter (OTC) through dealer networks. Pricing was opaque. Liquidity was limited. Secondary trading was difficult.
Now, CPs can be listed on NGX—bringing:
- Price transparency (public quotes)
- Liquidity (exchange-traded secondary market)
- Investor confidence (NGX listing signals credibility)
- Regulatory alignment (SEC + NGX dual oversight)
Jude Chiemeka, NGX CEO: “The introduction of commercial paper listings is a pivotal step in our strategy to position NGX as a comprehensive capital-markets infrastructure that accelerates capital formation across Africa.”
The Dangote Cement listing is the first. It won’t be the last.
Serrari Group analysts noted: “As more issuers follow, as secondary market trading develops, and as investor familiarity with exchange-listed commercial papers deepens, the architecture being established today will underpin a more transparent, liquid, and inclusive Nigerian debt capital market for years to come.”
For tech companies like Nairagram, this is good news. NGX-listed CPs could attract even more institutional capital, improve liquidity, and make debt financing more accessible to credible tech infrastructure players.
Why This Matters for African Tech: Infrastructure > Hype
Nairagram’s ₦10 billion CP raise in 48 hours exposes a fundamental truth about African tech funding:
Institutional capital rewards infrastructure, not hype.
For years, the narrative was: raise from international VCs, burn through growth capital, chase unicorn valuations, hope for exit. That worked when global VC was abundant and risk-tolerant.
Now, global VC is scarce. African startups raised $3.42 billion in 2025—better than 2024, but concentrated in fewer, larger deals to proven companies.
The new model emerging:
- Build real infrastructure (payments, logistics, SaaS, B2B tools)
- Generate predictable cash flows (transaction fees, subscriptions, spreads)
- Achieve profitability (or at least positive unit economics)
- Access institutional debt (commercial paper, bonds, bank loans)
- Scale sustainably (debt-fueled growth without equity dilution)
Who this works for:
- Payment infrastructure: Nairagram, potentially Moniepoint, Flutterwave (if they pursue CP)
- B2B SaaS: Enterprise software with recurring revenue
- Logistics platforms: If they achieve operational profitability (unlike Alerzo)
- Profitable fintechs: Digital lenders with proven repayment models
Who this doesn’t work for:
- Consumer apps burning cash on user acquisition
- B2B e-commerce with unsustainable unit economics (2-5% margins)
- Early-stage startups without audited financials or cash flows
- Unprofitable growth stories that can’t service debt
Idris Ibrahim, President and Co-Founder of Nairagram: “This successful Commercial Paper issuance is a strong validation of Nairagram’s vision and execution. The speed and scale of the subscription reflect institutional confidence not only in our business, but in the broader opportunity to build resilient, African-owned financial infrastructure.”
That last phrase is key: “resilient, African-owned financial infrastructure.”
Not flashy. Not hyped. Resilient.
Because when you’re servicing institutional debt at 19-23% annual yields, you can’t afford to miss payments. Which means you can’t afford to have bad unit economics, unpredictable cash flows, or business models that don’t generate real revenue.
Institutional debt is a forcing function for building real businesses.
The Verdict: Tech’s Next Funding Wave Is Institutional, Not VC
Nairagram’s ₦10 billion CP raise in 48 hours—alongside Dangote Cement’s ₦119.87 billion NGX listing—signals that Nigeria’s debt capital market is open for business.
For credible tech companies with:
- Audited financials
- Predictable cash flows
- Institutional credibility
- SEC/FMDQ compliance
Institutional debt (19-23% CP yields) is now faster, cheaper, and less dilutive than venture equity.
The implications are profound:
For founders: If you can build infrastructure instead of apps, generate cash flows instead of GMV, and achieve profitability instead of growth-at-all-costs, institutional debt could be your next funding source—no Sand Hill Road required.
For VCs: African startups with real revenue may increasingly choose debt over equity, especially as CP markets deepen. That forces VCs to focus on earlier-stage, higher-risk bets where debt isn’t an option.
For institutional investors: Nigeria’s ₦8.19 trillion CP market offers yields (19-30%) that beat government bonds—if you can identify credible issuers. Tech infrastructure companies like Nairagram are now part of that universe.
For the ecosystem: The clearest signal that African tech is maturing isn’t another unicorn valuation. It’s profitable companies accessing public debt markets alongside blue-chip corporates like Dangote.
Alerzo raised $20 million in equity and defaulted on ₦4.38 billion in debt.
Nairagram raised ₦10 billion in debt in 48 hours—fully subscribed.
The difference? Infrastructure beats hype. Cash flows beat narratives. Profitability beats growth-at-all-costs.
And in Nigeria’s institutional debt markets, that’s the only story that matters.
As of February 2026, Nigeria’s commercial paper market totals ₦8.19 trillion in registered programs and ₦7.23 trillion in quoted CPs. Nairagram plans to raise ₦50 billion total in 2026. Dangote Cement’s ₦119.87 billion CP is the first-ever commercial paper listed on the Nigerian Exchange.
