Nigerian Exchange Limited (NGX) has officially introduced Commercial Paper (CP) listings to its platform following approval from the Securities and Exchange Commission (SEC). This strategic move enables corporates and issuers to list and trade both conventional and non-interest commercial papers directly on the Exchange.
The initiative provides investors with enhanced visibility and improved liquidity while ensuring greater transparency in the market. It also advances the NGX strategy of diversifying its offerings to strengthen the architecture of the domestic capital market.
With this inclusion, NGX now offers an integrated environment that spans equities, fixed income, ETFs, derivatives, and short-term debt. This development cements the Exchange’s ambition to operate as a comprehensive, one-stop marketplace for capital across various asset classes.
This marks another significant expansion of the NGX product suite during a year defined by accelerated innovation. Furthermore, the move deepens Nigeria’s short-term debt market and reinforces the Exchange’s role as a versatile hub for capital formation.
Understanding Commercial Papers
Commercial Papers are short-term, unsecured debt instruments issued by corporates to finance working capital needs and other obligations. To clarify how they function for investors and issuers:
- Maturity: These instruments typically mature within 270 days.
- Pricing: CPs are issued at a discount and redeemed at face value upon maturity.
- Benefits: They offer corporates a cost-effective alternative to bank loans and provide investors with attractive short-term investment opportunities.
Leadership Perspectives on Growth
Temi Popoola, Group Managing Director and CEO of NGX Group, commended the SEC for enabling market advancement and fostering healthy competition. He stated: “The introduction of Commercial Paper listings is a pivotal step in our strategy to position NGX as a comprehensive capital-markets infrastructure that accelerates capital formation across Africa”.
Popoola emphasized the focus on a technology-driven ecosystem. “As we continue strengthening the foundations of a transparent, technology-driven and inclusive marketplace, our focus remains on building a system that supports sustainable growth, enhances market resilience and unlocks new opportunities for the broader economy,” Popoola said.
Operational Efficiency and Oversight
Jude Chiemeka, CEO of Nigerian Exchange Limited, highlighted the operational benefits for businesses. He stated: “The introduction of Commercial Paper listings represents a major advancement in our mission to provide a full spectrum of capital-raising solutions for businesses.”
Chiemeka noted the platform supports efficient access to funding outside traditional banking. “This platform enhances transparency in the debt market and supports corporates seeking efficient access to funding outside traditional banking channels, while offering investors credible short-term investment options. NGX will continue to engage with corporates, intermediaries, and investors to deepen liquidity and participation in Nigeria’s debt capital market,” he added.
Regarding regulation, Olufemi Shobanjo, CEO of NGX Regulation Limited, said that strong oversight will remain central as the market evolves. “Our priority is to maintain high standards of disclosure, promote accountability and safeguard investor confidence while contributing to market deepening,” he emphasised.
