NBET, LAGOS LEAD BIGGEST BOND BORROWERS IN NIGERIA’S H1 DEBT MARKET

The Nigerian Bulk Electricity Trading Company (NBET) and Lagos State Government emerged as the biggest bond borrowers in the first half of the year, reflecting increased demand for funding across key sectors of the economy.

The bond market activity highlights the growing reliance on debt instruments by government agencies and subnational governments to finance infrastructure projects, strengthen operations, and support development initiatives.

NBET’s borrowing was linked to efforts to support Nigeria’s power sector, while Lagos State’s bond issuance was aimed at funding critical projects and expanding infrastructure to meet the needs of its growing population.

Financial analysts said the increased activity in the bond market shows continued investor confidence in fixed-income instruments despite broader economic challenges. They noted that bonds remain an important source of long-term financing for public and private sector projects.

Experts, however, stressed the importance of ensuring that borrowed funds are channelled into productive investments that generate economic value and improve public services.

Market participants said sustained transparency, effective debt management, and strong repayment plans will be essential as more institutions turn to the bond market to raise capital.