CIG Motors has launched a N30 billion Series 2 commercial paper under its broader N100 billion programme, targeting short-term institutional funding to support its operations and deepen its footprint across Nigeria.
The offer is structured in two tranches. Tranche A carries a 272-day tenor with a discount rate of 18.53% and an implied yield of 21.50%. Tranche B runs for 364 days at a discount rate of 19.53%, offering investors an implied yield of 24.25%. The minimum subscription threshold is N5 million, with additional investments accepted in multiples of N1,000. The offer closed on May 25, 2026, with funding set for May 26.
What the Money Is For
CIG Motors says proceeds will go into inventory financing, working capital optimisation, operational expansion, and broader mobility infrastructure development across Nigeria. The company is pushing beyond vehicle distribution into an integrated mobility model that includes local assembly, electric vehicle solutions, and after-sales services.
The fundraising comes after the company completed full redemption of its N10.2 billion Series 1 commercial paper, a track record it is leaning on to attract investors to the new issuance.
Who Is Backing the Deal
United Capital Plc is serving as the lead issuing house. Cordros Capital Plc and Rand Merchant Bank are acting as joint issuing and placing agents. Wema Bank, Access Bank, and Providus Bank are the designated receiving banks.
Two credit rating agencies assessed the programme. DataPro Limited assigned an A1 short-term rating and an A long-term rating. Agusto & Co. gave it an A2 short-term rating and a Bbb long-term rating. Both assessments place the paper in investment-grade territory, making it eligible for consideration by institutional investors with fixed-income mandates.
Where CIG Motors Sits in the Market
The issuance arrives at a time when Nigerian companies are increasingly turning to commercial paper as an alternative to bank lending, where rates have remained elevated. Corporate CP issuances in 2025 crossed N1 trillion, with yields broadly in the 18% to 25% range.
The company’s credit ratings place it below top-tier corporates on the risk spectrum, but within the acceptable range for yield-seeking institutional money.
CIG Motors also carries exposure to state-backed transport infrastructure. In 2024, Lagos State, through IBILE Holdings Limited, entered a deal with the company covering the supply of 5,000 vehicles for the Lagos Ride transport scheme, valued at approximately $260 million. That deal positioned CIG Motors as a direct supplier to one of the largest urban mobility projects in Nigeria’s recent history.
Policy Tailwinds and Sector Pressure
Nigeria’s automotive sector continues to operate under strain from foreign exchange volatility and import costs for spare parts. Import tariffs on fully built vehicles have made the operating environment difficult for distribution-heavy players.
CIG Motors’ model is oriented toward local assembly and electric mobility, which aligns with the federal government’s stated policy direction on reducing import dependence and building domestic capacity. That alignment may help insulate the company from some of the policy risk that affects competitors more reliant on vehicle imports.
