CIG Motors has opened a N30 billion Series 2 commercial paper under its N100 billion programme as it seeks new short-term funding to support its operations and expansion plans across Nigeria.
The offer runs for two tranches with different maturities and returns. Tranche A carries a tenor of 272 days with a discount rate of 18.53% and an implied yield of 21.50%.
Tranche B runs for 364 days, with a discount rate of 19.53% and an implied yield of 24.25%.
The minimum subscription is N5 million, while additional investments come in multiples of N1,000. The offer closes on Monday, May 25, 2026, with the funding date set for Tuesday, May 26, 2026.
The company said proceeds will go into core operational needs and also listed inventory support and wider expansion plans.
In its disclosure, it stated: “Proceeds from the issuance will be used for inventory financing, working capital optimisation, operational expansion, and broader mobility infrastructure development across Nigeria.”
United Capital Plc is the lead issuing house for the transaction. Cordros Capital Plc and Rand Merchant Bank act as joint issuing and placing agents. Wema Bank Plc, Access Bank Plc and Providus Bank serve as receiving banks.
Credit rating agencies assigned investment-grade ratings to the programme. DataPro Limited gave it an A1 short-term rating and an A long-term rating. Agusto & Co. assigned an A2 short-term rating and a Bbb long-term rating.
CIG Motors returned to the market after completing full redemption of its N10.2 billion Series 1 commercial paper. The company pointed to that repayment as part of its track record in meeting obligations and managing institutional funding.
Recent financial disclosures show revenue of N177.4 billion. Earnings before interest, tax, depreciation and amortisation stood at N35.3 billion. Profit after tax came in at N17.3 billion. These figures are part of the documentation supporting the new issuance.
Executives say the numbers reveal steady operational growth, pointing to expanding activity in vehicle assembly, mobility services and after-sales support.
Chairman Diana Chen described the transaction as a strong vote of confidence in both Nigeria’s economic outlook and the company’s long-term growth strategy.
Group Chief Financial Officer Ram Murugesan said the company’s financial performance shows a deliberate platform-building approach driven by disciplined leverage management and expanding operational capacity.
Gbadebo Adenrele also noted that the successful redemption of Series 1 strengthened the company’s position in the local capital market. He added that United Capital’s involvement in the Series 2 issuance followed CIG Motors’ execution record and financial discipline.
The fundraising is seen within a pattern in Nigeria’s commercial paper market. Corporate issuers have turned more to short-term debt as bank lending costs are high and liquidity stays tight.
In 2025, Nigerian companies raised more than N1 trillion through commercial paper programmes. Yields in that period generally ranged between 18% and 25%, reflecting inflation pressures and funding demand across sectors.
CIG Motors’ current pricing falls within that range. It also places the offer in line with other mid-tier industrial and manufacturing issuers competing for investor funds.
Ratings on the programme point to moderate risk with investment-grade status. That places it below top-tier corporates, but still within acceptable thresholds for institutional investors seeking yield.
The company’s operations include vehicle assembly, electric mobility solutions and transport services. Its structure reflects a drive toward integrated automotive services rather than import-heavy distribution.
In 2024, Lagos State Government, through IBILE Holdings Limited, entered a partnership with CIG Motors. The deal covered the acquisition of 5,000 vehicles for the Lagos Ride transport scheme, with an estimated value of $260 million.
The programme aims to modernise urban transport in Lagos and replace older vehicles across parts of the public mobility system. It also positioned CIG Motors more firmly inside state-backed transport infrastructure projects.
Nigeria’s automotive sector is operating under pressure from import tariffs on fully built vehicles. Foreign exchange volatility also affects spare parts costs and local assembly operations. Policy direction, however, continues to support local assembly and electric mobility.
CIG Motors’ model is within that policy direction. Its focus on assembly, mobility services and electric vehicle expansion aligns with government efforts to reduce import dependence and build local capacity in transport infrastructure.
