The Nigerian Exchange Limited has taken another step to expand Nigeria’s capital market by introducing Commercial Paper listings, a move expected to deepen the country’s short-term debt segment and provide more funding options for businesses. The new listing window, recently approved by the Securities and Exchange Commission, gives corporates the opportunity to issue and list commercial papers directly on the NGX platform, creating a more transparent and structured market for short-term instruments.
In a statement on Wednesday, NGX described the new offering as an important addition to its existing products, which already include equities, fixed income, Exchange Traded Funds, derivatives and other investment instruments. With this introduction, the Exchange now operates as a more integrated marketplace that supports long-term and short-term financing needs.
The Group Managing Director and Chief Executive Officer of NGX Group, Mr Temi Popoola, commended the Securities and Exchange Commission for supporting innovations that promote competition and growth within Nigeria’s capital markets. He said the new listing category aligns with NGX’s long-term strategy to build a strong capital-market infrastructure capable of driving economic growth not only in Nigeria but across Africa.
According to him, the introduction of commercial paper listings will help strengthen the foundations of a marketplace that is transparent, technology-driven and inclusive. Popoola explained that corporates require flexible funding channels to support expansion, and investors also need safe short-term instruments that offer reasonable returns. He added that the new product will help attract more issuers, encourage liquidity and expand the role of the Exchange in mobilising capital for national development.
Commercial papers are short-term, unsecured debt instruments issued by companies to finance working capital needs, meet operational obligations or manage cash flow imbalances. They typically mature in less than 270 days and are issued at a discount, meaning investors buy them at a lower price and receive the full value upon maturity. Because they usually offer lower costs than bank loans, commercial papers serve as an important funding alternative for many corporates. For investors, they provide attractive short-term opportunities, especially for institutions looking to manage liquidity efficiently.
The CEO of the Nigerian Exchange Limited, Mr Jude Chiemeka, emphasised the importance of the new product category in supporting corporate financing. He said the commercial paper listing framework will give businesses access to the capital market without relying solely on traditional banks. According to him, the platform ensures greater transparency and gives investors confidence because all listed instruments must meet NGX disclosure and regulatory requirements.
Chiemeka also noted that NGX will continue to work closely with corporates, market intermediaries and investors to drive liquidity and participation in Nigeria’s debt capital market. He said the Exchange aims to strengthen the debt market so that more Nigerian companies can raise funds at competitive rates.
In the same vein, the CEO of NGX Regulation Limited, Mr Olufemi Shobanjo, stressed that regulatory oversight remains a top priority as new products are introduced. He explained that maintaining strict compliance, transparency and investor protection are essential to the long-term health of the market. Shobanjo said NGXR will continue to enforce high standards so that issuers and investors can operate in a predictable and trustworthy environment.
With this new platform, corporates can list both conventional and non-interest commercial papers, giving room for a wide range of issuers including those who operate under ethical or Shari’ah-compliant financing principles. Analysts say the introduction is timely, especially as more companies are demanding access to flexible funding to manage inflation, rising operational costs and currency pressures affecting the wider economy.
The development also positions NGX as a more competitive capital-market hub within Africa. Many global markets have used commercial paper platforms to improve liquidity, expand funding options and attract institutional investors. By introducing this structure, Nigeria joins other emerging markets that offer a complete suite of short-term and long-term financial instruments to support business growth.
Market watchers believe the new listing will help deepen Nigeria’s debt capital market, increase investor participation and strengthen corporate funding channels in the months ahead. They also expect it to stimulate innovation among issuers and improve the overall attractiveness of the Nigerian capital market to regional and international investors.
