Stories by Seun Ibiyemi
The Securities and Exchange Commission (SEC) has granted approval for the listing of Commercial Papers (CP) on the Nigerian Exchange Limited (NGX) board.
This approval signals a major milestone in Nigeria’s evolving capital market landscape.
The new listing framework allows corporates and issuers to list and trade both conventional and non-interest commercial papers directly on the Exchange.
According to NGX, the initiative is designed to enhance visibility, transparency and liquidity for investors while offering businesses a more efficient avenue to raise short-term funding.
NGX said the addition of CPs aligns with its broader strategy to diversify its product offerings and strengthen the domestic capital-market architecture.
With this development, the Exchange now provides an integrated marketplace covering equities, fixed income, exchange-traded funds (ETFs), derivatives and short-term debt instruments—advancing its goal of becoming a comprehensive hub for capital raising across asset classes.
Describing the move as another significant expansion in a year of accelerating innovation, NGX noted that the introduction of CP listings deepens Nigeria’s short-term debt market and reinforces the Exchange’s position as a versatile platform for capital formation.
Commercial papers short-term, unsecured debt instruments with maturities typically not exceeding 270 days enable corporates to finance working capital and other short-term obligations.
Offered at a discount and redeemed at face value, CPs provide a cost-effective alternative to bank loans for issuers and attractive short-tenor investment opportunities for investors.
Group Managing Director and CEO of NGX Group, Temi Popoola, commended the SEC for its support, stating that the initiative represents a pivotal step in positioning the Exchange as a continent-leading capital markets infrastructure.
“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 said.
“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.”
CEO of Nigerian Exchange Limited, Jude Chiemeka, described the development as a major advancement in providing full-spectrum capital-raising solutions for Nigerian businesses.
“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,” he said, adding that NGX will continue engaging stakeholders to deepen liquidity and participation in the debt capital market.
Similarly, CEO of NGX Regulation Limited, Olufemi Shobanjo reaffirmed the Exchange’s commitment to strong oversight, stating that maintaining high standards of disclosure and safeguarding investor confidence remain top priorities as the market evolves.
He noted that NGX Regulation will continue to promote accountability and ensure that the CP market grows on a foundation of robust regulatory practices.