Nigerian Exchange Limited (NGX) has introduced Commercial Paper (CP) listings following approval from the Securities and Exchange Commission (SEC), in a move aimed at deepening Nigeria’s short-term debt market.
In a statement issued on Wednesday, NGX said the new market offering would significantly strengthen the country’s debt capital market and provide corporates with enhanced access to short-term funding.
With the addition of the CP listing window, NGX now operates an integrated market environment spanning equities, fixed income, exchange-traded funds (ETFs), derivatives and short-term debt instruments.
Commenting on the development, the Group Managing Director/Chief Executive Officer of NGX Group, Mr Temi Popoola, commended the SEC for its continued support in advancing the market and promoting healthy competition across the financial ecosystem.
“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.
He added that as NGX strengthens the foundations of a transparent, technology-driven and inclusive marketplace, its focus remains on building a system that supports sustainable growth, enhances market resilience and unlocks new opportunities for the broader economy.
Commercial Papers are short-term, unsecured debt instruments issued by corporates to finance working capital needs and other short-term obligations. They typically mature within 270 days, are issued at a discount, and redeemed at face value at maturity.
The instruments offer corporates a cost-effective alternative to bank loans, while providing investors with attractive short-term investment opportunities.
The introduction of CP listings is expected to improve liquidity in the short-term debt market and expand funding options for Nigerian businesses.
