According to Nigeria's National Bureau of Statistics (NBS), Nigeria's GDP for the second quarter of 2016 contracted by 2.06% to record its lowest growth rate in three decades. This negative growth has caused companies to seek ways to de-risk, re-strategize, and, most importantly, cut costs, which includes refinancing expensive debt and looking for new funding options.
One of such options has been raising funds through the capital markets – both cross-border and domestic. Nigerian Pension Fund Administrators (PFAs) and Foreign Portfolio Investments (FPIs) are significant investors in the Nigerian capital markets. According to the National Pension Commission (Pencom), PFAs as at July 2016 had an asset base of ₦5.82 trillion, primarily invested in government securities.
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