The Nigerian Exchange Limited (NGX) has announced the launch of a new listing segment for Commercial Papers (CPs), following approval from the Securities and Exchange Commission (SEC). The move marks a major expansion of NGX’s product offerings, reinforcing its ambition to become a full-spectrum capital markets hub.
Under the new framework, corporates can now list and trade both conventional and non-interest CPs directly on NGX. The exchange said this will provide investors with enhanced visibility, increased transparency, and improved liquidity while giving companies a viable alternative to traditional bank borrowing for short-term funding needs.
According to NGX, Commercial Papers are short-term, unsecured debt instruments typically maturing within 270 days. They are normally issued at a discount and redeemed at face value, offering corporates an efficient way to manage working capital, and investors a potentially attractive short-duration investment.
In comments, NGX Group Managing Director and CEO Temi Popoola described the introduction of CP listings as “a pivotal step” in positioning the Exchange as a comprehensive capital-markets infrastructure across Africa. He emphasized that NGX remains committed to building “a transparent, technology-driven and inclusive marketplace.”
Echoing that sentiment, NGX CEO Jude Chiemeka said the CP listing window significantly expands the range of capital-raising solutions available to businesses, while offering investors credible short-term investment options outside traditional banking channels. Meanwhile, the head of regulation at NGX, Olufemi Shobanjo, stressed that robust oversight, strong disclosure standards and accountability will remain central as the new market segment evolves.
With the addition of Commercial Papers, NGX now offers an integrated platform that spans equities, fixed income, exchange-traded funds (ETFs), derivatives and short-term debt instruments underscoring its ambition to be a “one-stop” marketplace for capital across asset classes.
What This Means for the Market
The launch of CP listings on NGX signals a deepening of Nigeria’s short-term debt market. For corporates facing tight credit conditions or looking for flexible, low-cost short-term funding, CPs present an attractive alternative to traditional bank financing. For investors especially those seeking short-duration, lower-risk investments, the listings could open up a new avenue for fixed-income exposure that offers liquidity and transparency.
Regulators and market participants alike expect the move to support broader capital formation, promote more efficient corporate funding, and encourage a more diverse and resilient capital-market ecosystem as long as issuers comply with stringent disclosure and governance standards.
