FMDQ Approves Accion MFB N2.02bn Commercial Paper

FMDQ Securities Exchange Limited has approved the quotation of a N2.02 billion commercial paper issued by Accion Microfinance Bank Limited under its N5 billion funding programme, providing the lender with short-term capital to expand support for small businesses and low-income borrowers.

The approval, granted by the exchange’s listings committee, is expected to strengthen the bank’s working capital position and boost lending to micro-entrepreneurs nationwide.

In a parallel development, Payaza Africa is seeking to raise roughly N50 billion through its own commercial paper issuance programme, highlighting rising corporate reliance on the short-term debt market for operational financing.

According to the exchange, Accion’s issuance was arranged with support from FBNQuest Merchant Bank Limited and will help deepen the institution’s lending reach.

Executives at the microfinance bank said the funding will not only expand credit capacity but also support financial innovation and digital transformation initiatives aimed at improving service delivery.

Officials at the arranging bank described the transaction as a strong debut that attracted significant investor interest, noting that the oversubscription signalled confidence in the institution’s growth strategy.

Meanwhile, Payaza disclosed that it has raised more than N70 billion across several commercial paper issuances since inception, with a portion already repaid and the remainder still within scheduled maturity timelines.

Analysts note that commercial paper programmes offer companies relatively inexpensive short-term financing options, enabling them to meet liquidity needs and scale operations. For Accion, the proceeds are expected to enhance credit availability for underserved businesses, reinforcing its broader financial inclusion agenda.