OECD: Nigeria holds 16% of Africa's corporate debt, still relies heavily on bank loans
OECD's 2026 Africa Capital Markets Report shows six countries control 80% of the continent's outstanding corporate debt, with Nigeria holding the second-largest share at 16% behind South Africa's 31%. Egypt follows at 13%, then Mauritius (9%), Mozambique (6%), and Morocco (5%). South Africa's corporate debt stock hit $63 billion at end-2025, while Egypt's share has halved since 2010 due to contraction rather than others' growth.
For Nigerian businesses, the report underscores a persistent reality: bank loans still dominate. A Nairametrics review of 19 top NGX 30 companies shows combined debt of ₦6.25 trillion as of June 2026, with ₦4.64 trillion (74.2%) from bank loans and direct borrowing. Commercial papers are growing fast—₦1.61 trillion raised in 2025 (up 40% from 2024)—and 24 companies had issued papers by May 2026. Outstanding corporate bonds reached ₦2.30 trillion, commercial papers ₦465.34 billion.
The bigger picture: Africa's domestic capital pools exceed $4.4 trillion across banks, pension funds, sovereign wealth funds, and insurers, yet the continent captures only 0.4% of global market capitalization. The OECD says capital markets remain underutilized for long-term finance compared to other emerging markets.
With CBN injecting ₦3.20 trillion net liquidity in October 2026 as maturing securities outpaced new issuance, the funding environment is shifting. For companies weighing financing options, the question becomes: when does the cost of bank debt justify tapping the growing commercial paper or bond markets instead?