Nigerian companies are pressing pause on issuing fresh debt instruments, waiting for a potentially more favorable borrowing environment after the Central Bank of Nigeria’s (CBN) September Monetary Policy Committee (MPC) meeting.

With interest rates currently at their highest levels in decades, the cost of servicing new debt has become prohibitively expensive for many firms. This has left the corporate bond market in a noticeable lull.

Many corporate organisations are betting that the CBN will announce rate cuts in September, which could lower borrowing costs and make corporate debt issuance more attractive.

Data from FMDQ show that there was no new corporate bond issuance in recent weeks, underscoring how elevated interest rates have dampened market activity.

The pause in new debt issuance highlights the sensitivity of the Nigerian corporate bond market to monetary policy shifts, especially at a time when companies are managing tighter liquidity and high operational costs.