Accion Microfinance Bank has taken a bold step into Nigeria’s capital market with the launch of its first-ever commercial paper programme worth N5 billion, aimed at strengthening its working capital and expanding support for small businesses.

Speaking at the official launch in Lagos on Friday, Taiwo Jordan, MD/CEO of Accion MfB, said the initiative goes beyond raising funds.

“The N5 billion commercial paper is about reinforcing our capacity to expand lending, deepen financial innovation, and accelerate our digital transformation,” Jordan explained.

First Series Details

The debut issuance is structured in phases, starting with a N2 billion series carrying a 270-day tenor, an implied yield of 23%, and a discount rate of 19.66%. The programme, arranged exclusively by FBNQuest Merchant Bank, opened this week and closes on August 29, 2025.

The debt instrument, with a maturity date of May 18, 2026, requires a minimum investment of N5 million (5,000 units at N1,000 per unit).

Jordan noted that many small business owners have seen their capital eroded by inflation and foreign exchange volatility, increasing their need for financial support.

“Many of our customers—whose average loans are around one million naira—now rely on banks to sustain and grow their businesses,” he said.

As part of its three-year strategic plan, Accion MfB aims to significantly grow its balance sheet, with the CP programme serving as a key driver.

Strong Financial Performance

The bank, founded 18 years ago, has posted impressive growth:

Total assets: up 47% to over N23 billion (mid-2025)

Loan portfolio: up from N16 billion to N19.2 billion

Deposits: up from N4.95 billion in 2022 to N7.2 billion

With 526,000 active customers nationwide and backing from credible partners like Citibank and the IFC, the bank expects the offer to be oversubscribed.

Market Confidence

FBNQuest’s Head of Investment Banking, Yetunde Falore, praised the debut CP, saying it highlights both investor confidence and Accion’s strong fundamentals.

“This transaction opens the door for Accion to tap into a broader investor base, while its solid A– credit rating reflects strong performance and reliability,” Falore said.