CIG Motors Company Limited has announced the launch of a N30 billion Series 2 Commercial Paper as part of its larger N100 billion Commercial Paper Programme. The move is aimed at strengthening the company’s financial base and supporting the expansion of its integrated mobility and transportation services across Nigeria.
The offer is open to both institutional and retail investors and is expected to close on Monday, May 25, 2026. The company says the fundraising is designed to attract wide investor participation while supporting its short-term funding needs for growth and operations.
The issuance is structured into two separate tranches, each with different maturity periods and returns. Tranche A has a tenor of 272 days and offers a discount rate of 18.53 percent, with an implied yield of 21.50 percent. Tranche B runs for 364 days and offers a higher discount rate of 19.53 percent, with an implied yield of 24.25 percent. The minimum subscription has been set at N5 million, with additional investments allowed in multiples of N1,000, making it accessible to a range of qualified investors.
The funding date for the transaction has been scheduled for Tuesday, May 26, 2026. According to the company, the proceeds will be directed toward inventory financing, working capital optimisation, expansion of operations, and the development of broader mobility infrastructure across Nigeria.
This new issuance comes after the successful full repayment of the company’s N10.2 billion Series 1 Commercial Paper. CIG Motors noted that the repayment demonstrates its strong financial discipline and ability to meet obligations while managing institutional capital effectively.
The company also highlighted strong financial performance in its latest disclosures. It reported revenue of N177.4 billion, earnings before interest, tax, depreciation, and amortisation (EBITDA) of N35.3 billion, and profit after tax of N17.3 billion. These results were presented as key evidence of its growing operational strength and expansion capacity.
According to the company, these financial indicators support investor confidence in the new issuance and reflect a steady scaling of its business model. Executives described the performance as the result of disciplined financial management and strategic investment in mobility infrastructure.
The transaction is being managed by United Capital Plc as the primary issuing house, with Cordros Capital Plc and Rand Merchant Bank serving as joint issuing and placing agents. Receiving banks include Wema Bank Plc, Access Bank Plc, and Providus Bank.
The commercial paper programme has also received strong credit ratings. DataPro Limited assigned it an A1 short-term and A long-term rating, while Agusto & Co rated it A2 short-term and BBB long-term, reflecting moderate to strong credit quality.
Chairman Diana Chen described the issuance as a strong endorsement of Nigeria’s economic outlook and the company’s long-term growth strategy. Group CFO Ram Murugesan added that the company’s performance reflects a structured approach to building scalable operations while maintaining financial discipline.
Gbadebo Adenrele also noted that the successful redemption of the Series 1 issuance helped strengthen CIG Motors’ credibility in the capital market, reinforcing investor trust in its financial management.
In 2024, Lagos State Governor Babajide Sanwo-Olu supervised a joint venture between IBILE Holdings and CIG Motors, which included the acquisition of 5,000 vehicles for the Lagos Ride (LAGRIDE) transport fleet. The project, valued at about $260 million, is part of efforts to modernise urban transportation in Lagos and replace ageing public transport vehicles.
Overall, the new commercial paper issuance positions CIG Motors for continued expansion in Nigeria’s growing mobility sector while offering investors a structured short-term investment opportunity.
