FCMB Capital Markets Limited has emerged as the top performer on the Fixed Income Primary Markets Sponsors’ League Table of FMDQ Securities Exchange Limited after raising ₦1.53 trillion in corporate debt capital in 2025.

The firm, which is the investment banking subsidiary of FCMB Group Plc, achieved this milestone through a combination of bond listings and commercial paper quotations on the exchange.

According to FMDQ’s latest report, FCMB Capital Markets led overall sponsor contributions across both segments, reinforcing its position as a dominant player in Nigeria’s fixed-income market.

Strong Market Share Across Segments

In the bond market, the firm accounted for 11.66 per cent of total listings, securing the top position among market participants.

Similarly, in the commercial paper segment, it recorded the highest share of quotations at 7.68 per cent, outperforming other registration members.

The report noted that 58 registration members participated in listings, while 77 were involved in quotations during the period. However, only 47 institutions actively sponsored fixed-income securities listings or quotations, excluding Federal Government instruments.

Leadership Reacts to Performance

Executive Director of Coverage and Investment Banking at FCMB Group Plc, Femi Badeji, attributed the achievement to strong investor confidence and the firm’s execution capabilities.

He noted that mobilising over ₦1 trillion within a single year underscores the growing demand for capital market funding and highlights the firm’s role in connecting issuers with long-term investors.

Also speaking, the Chief Executive Officer of FCMB Capital Markets, Ikechukwu Omeruah, reaffirmed the company’s commitment to helping businesses access both short-term and long-term financing through structured capital market solutions.

Expanding Influence Across Sectors

Over the past five years, FCMB Capital Markets has played a key role in financing transactions across multiple sectors, including oil and gas, power, real estate, financial services, consumer goods, and telecommunications.

The firm’s performance has also earned industry recognition, including being named Corporate Bond House of the Year by the Association of Issuing Houses of Nigeria at the 2025 Investment Banking Awards.

Driving Capital Market Growth

Market analysts say the firm’s dominance reflects broader growth in Nigeria’s debt capital market, as corporates increasingly turn to bonds and commercial papers for funding amid evolving economic conditions.

FCMB Capital Markets continues to provide advisory services across debt and equity financing, project finance, mergers and acquisitions, and corporate restructuring.

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Accion Microfinance Bank Limited has successfully listed N2.02 billion Series 1 Commercial Paper (CP) on the FMDQ Securities Exchange, under its broader N5 billion Commercial Paper Programme.

The approval, granted by FMDQ’s Board Listings and Markets Committee, provides the bank with cost-efficient short-term funding to bolster its lending operations to micro-entrepreneurs and low-income earners across Nigeria.

The move reflects a growing trend among financial institutions to leverage Nigeria’s capital markets to access working capital amid rising borrowing costs in the commercial banking sector.

According to the official release, this Series 1 CP issuance was oversubscribed, signalling strong investor confidence in Accion MFB’s operational strategy and its commitment to financial inclusion.

“This CP issuance is not just about raising funds; it is about reinforcing our capacity to provide working capital, expand lending to small businesses, deepen financial innovation, and accelerate our digital transformation,” said Mr. Taiwo Joda, Managing Director of Accion MFB. He added that the proceeds will enable the bank to extend more credit to micro-entrepreneurs and small-scale businesses, a move that aligns with its mission to empower low-income communities.

Sponsored by FBNQuest Merchant Bank Limited, the issuance demonstrates the critical role merchant banks play in facilitating efficient access to capital. Mrs. Yetunde Falore, Head of Investment Banking at FBNQuest, stated: “We are proud to have guided this debut transaction. The oversubscription reflects investor confidence in Accion MFB and its financial inclusion mandate. By leveraging the capital market, institutions like Accion MFB can scale their impact effectively.”

In a parallel development, Payaza Africa Limited, a partner of MasterCard and Visa, is currently raising approximately N50 billion via Series 1 and 2 Commercial Papers under its N150 billion Commercial Paper Programme. Payaza has cumulatively raised over N70 billion through six CP series since its inception, with N32.53 billion fully repaid. The remaining balance is within the scheduled repayment timeline, reflecting disciplined financial management.

Experts highlight that CP issuances offer companies a cost-effective alternative to traditional bank loans, enabling them to meet operational and expansion needs while reducing reliance on high-interest borrowing. For microfinance banks like Accion, the proceeds enhance lending capacity to micro-entrepreneurs, contributing to broader financial inclusion and economic empowerment.

Financial analysts note that Nigeria’s commercial paper market is gaining traction as corporates increasingly seek agile, short-term financing solutions. The FMDQ Securities Exchange facilitates this by providing a regulated platform for CP issuances, attracting both institutional and retail investors. By participating in this market, firms can mobilize capital more efficiently than through conventional bank loans.

Accion MFB’s initiative is particularly significant given the challenges faced by small businesses in accessing affordable financing. Many micro-entrepreneurs and low-income earners are unable to meet collateral requirements for traditional loans, making microfinance institutions essential to bridging this gap. With the funds raised through the CP, Accion aims to scale its lending operations, supporting thousands of small businesses nationwide.

The issuance also underscores the synergy between technology-enabled capital markets and financial institutions seeking alternative funding sources. Digital platforms, streamlined processes, and transparent reporting mechanisms have made CPs an attractive avenue for both issuers and investors.

Looking ahead, analysts believe that increasing corporate participation in Nigeria’s CP market could improve liquidity, reduce borrowing costs, and enhance the capacity of microfinance banks to serve underserved communities. Such developments are expected to have a ripple effect, stimulating job creation, entrepreneurship, and economic growth at the grassroots level.

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BY: Laura Alakija and Mu’Awiya Yunusa

Sukuk Ijarah is one of the alternative instruments in Islamic finance which is frequently
offered around the world. It has also received encouraging…

Sukuk Ijarah is one of the alternative instruments in Islamic finance which is frequently
offered around the world. It has also received encouraging responses in the Nigerian
capital market. It is a means of raising funds and Sukuk Al-Ijarah provides an ethical, asset-backed financing model that can help close Nigeria’s 17–20 million housing deficitliquidity for economic growth.
This article examines how Sukuk Al-ijarah can be used to close the housing
infrastructure deficit in Nigeria.

The Concept of Sukuk Al-ijarah

Ijarah is lease financing form that may be applied to a particular asset. Upon maturity,
the lessor sells the asset to the lessee once all lease payments have been made. Like
other classes or types of Sukuk, Sukuk Ijarah bears a similarity to bonds.

For Sukuk Ijarah to be issued there has to be an underlying asset in which the Ijarah Sukuk
holder can hold equity.

Certificates of equal value are issued, representing a common share in the ownership of objects, usufructs or services in an investment project that are tradable in the secondary market.

Sukuk Ijarah is considered to be a flexible structure and can be used for multiple
financing needs. Various ijarah-based financing models or structures have been
proposed and implemented for different purposes around the world. Some of these
structures or models include:

ijarah muntahia bittamleek: Lease ending with the transfer of ownership. This is a
contemporary practice by Islamic financial institutions whereby it provides an option
to the customer to acquire the ownership of an asset with a low price at the end of a
specified period.

ijarah wa iqtina: Lease with acquisition. Ijarah wa iqtina is a lease together with a
promise by the lessee to purchase the asset at the end of the lease term. It is
therefore effectively very similar to a conventional finance lease or hire purchase
agreement.

Ijarah Mawsufah Fi Al-Zimmah: Forward Lease. This is an Islamic home loan based
on the concept of Forward Leasing, suitable to finance the purchase of property
which is under construction. Simply put, the monthly mortgage repayments are
considered as ‘rental’ until the final payment is made.

Al-ijarah thumma al-ba’i: Lease followed by sale. This is combination of two concepts
of Ijarah “leasing” and bay “buy.” The difference between this structure and ijarah
muntahia bittamleek is that under ijarah muntahia bittamleek, the lease agreement is
associated with the option (khiyar) to own the leased asset at the end of the lease
period while in ijara thumma bay’, the agreement incorporates the sale of the leased
asset at the end of the lease period.

The Structure of Sukuk Al-ijarah

The following six stages make up the structure of sukuk ijarah:
1. The Originator identifies the underlying project asset.
2. The originator transfers the underlying asset to the SPV to raise funds.
3. SPV issues sukuk, collect funds from investors and gives sukuk certificates to
the investors. Funds generated from the investors are made available to the
Originator.
4. SPV enters into a rental agreement with the originator for periodic repayment.
5. The rental amounts earned by SPV from the originator is distributed to the
investors.
6. At time of maturity, the SPV sells the underlying asset of Ijarah to originator
with agreed price to redeem the sukuk certificate
Sukuk Al-ijarah under the Nigerian Law

A. SEC Rules
The Rules were issued by SEC pursuant to its powers under Section 313 (6) of the
Investment and Securities Act, 2007 to regulate every sukuk issuer in Nigeria whether
government, private, indigenous or foreign entities so long as the entity is eligible to
issue sukuk.

Key terms under the SEC Rules

1. Sukuk Ijarah: The SEC rules describe Ijarah Sukuk as “certificates of equal
value which evidence undivided ownership on the leased asset and/or usufruct
and/or services and rights to the rental receivables from the said leased asset
and/or usufruct and/or services.”
2. Ijarah thummabai (lease to purchase): The Rules describe this class of Ijarah
Sukuk as “a contract which begins with an Ijarah contract to rent out a lessor’s
asset to a lessee. Consequently, at the end of the lease period, the lessee will
purchase the asset at an agreed price from the lessor by executing a purchase
contract.”
The Rules also permit issuance of forward leases with clear terms and conditions for
such a contract.

B. The Financial Markets Dealers Quotations (FMDQ) OTC Securities Exchange.
The SEC-registered self-regulatory over-the-counter securities exchange also issued
its listing rules for Sukuk in 2017 which provide detailed criteria and regulations for Alijarah Sukuk issuance among other classes of Sukuk. To be eligible for listing under
the FMDQ Listing Rules, the Ijarah Sukuk must meet the criteria outlined in Rules 1, 2,
3 and 4 of the Rules.

Development of Sukuk Al-Ijarah in Nigeria

Parallel to the increasing interest in the use of Islamic products globally, sukuk has
been identified as an alternative instrument for financing and investment. The most
commonly used and widely subscribed class of Sukuk is the Ijarah Sukuk. The first
Sukuk issuance in Nigeria was Al-ijarah Sukuk by the Osun State Government in 2013
which is also the first of its kind in sub-Sahara Africa.

The NGN60 Billion issuance was meant to fund the development of 20 High Schools, two middle level schools and two elementary schools in Osun State, Nigeria. Similarly, in 2016 the Federal Government of Nigeria (FGN) followed suit by issuing NGN100 billion sukuk ijarah for 25 road infrastructure projects throughout the federation.

The sukuk attracted an oversubscription of NGN105.9 billion, indicating investors’ desire and demand for sukuk. This first sukuk issued by FGN has raised a lot of enthusiasm resulting in two additional issuances by the FGN raising up to NGN362.5 billion through the three different issuances. Two sub-sovereign issuances were also made by Katsina State Government and most recently the Gombe State Government NGN 35billion Sukuk Alijarah. This means that the issuance of sukuk through concept of Ijarah is able to drive
the development of Islamic capital market industry in Nigeria and the country’s
infrastructure development.

Use of Ijarah Sukuk for Affordable Housing

Nigeria’s housing deficit is currently estimated to be between 17 to 20 million housing
units, the potential cost of overcoming the deficit is stated to be about NGN 6trillion.
The fact that Islamic Finance has a strong ethical focus and that so many of its core
contracts are asset-based makes property and infrastructure projects, particularly
those with a social element such as housing, very attractive to investors and
institutions.

The practical application of Ijarah Sukuk considered herein is the potential for its use
in the provision of low-cost home ownership. Malaysia, for example, has successfully
introduced and implemented Islamic Public-Private Housing Co-operative (IPHCM)
the model which is based on integration of the Ijarah Contract and other ethical
contracts. The IPHCM is a collaboration between public and private sectors.

The private sector construct low- and middle-income households whereas public sector
represents the Malaysian Federal Government and state governments.

Conclusion and Recommendation

Sukuk Al-ijarah is a competitive alternative that can be used to address the concerns
of affordable housing in Nigeria. The vast deficit in the housing sector can be closed
through the issuance of ethical financial instruments by the Federal Government or
the States. Joint venture agreements can be executed between the Federal Mortgage
Bank of Nigeria and the sub-sovereign states, with the states bearing 90% of the
equity contribution to be funded through Sukuk issuance particularly Al-ijarah Sukuk
because of its acceptability in the market.

Once the infrastructure is developed, sales from the units of houses will pay back the Sukuk with a surplus to the Government.

This funding method has indirectly made countries such as Singapore, UAE, Saudi
Arabia, Morocco, Egypt, Senegal, etc. hubs or centres that are capable of providing
profitable investment opportunities that are competitive for investors around the world.

Source: mondaq

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