NGX introduces commercial paper listings

The Nigerian Exchange Ltd. has expanded its offerings with the introduction of commercial paper listings approved by the Securities and Exchange Commission.

Our correspondent reports that commercial papers are short-term unsecured debt instruments issued by corporates to fund working capital and other obligations.

Typically maturing within 270 days, these instruments are issued at a discount and redeemed at face value, offering a cost-effective alternative to bank loans.

The Exchange said on Wednesday that the product window marked another milestone in its effort to broaden instruments available to issuers and investors.

According to NGX, the framework will allow corporates to list and trade both conventional and non-interest commercial papers directly on the Exchange.

The Exchange said the development will provide greater visibility, transparency and liquidity for short-term debt instruments.

Temi Popoola, Group Managing Director of NGX Group, commended the SEC for supporting market advancement and fostering healthy competition across the ecosystem.

He said the listings marked a pivotal step in NGX’s strategy to build comprehensive capital-markets infrastructure that accelerates capital formation across Africa.

He added that NGX remained focused on creating a transparent and inclusive marketplace that supports sustainable growth and unlocks new economic opportunities.

Jude Chiemeka, Chief Executive Officer of NGX, said the initiative represented a major advancement in delivering a full spectrum of capital-raising solutions.

He said the platform enhances transparency in the debt market and supports corporates seeking credible funding options outside traditional banking channels.

Chiemeka added that NGX would continue engaging market stakeholders to deepen liquidity and participation in Nigeria’s growing debt capital market.

Olufemi Shobanjo, Chief Executive Officer of NGX Regulation, said strong oversight would remain central as the market continues to evolve.

He said maintaining high disclosure standards and safeguarding investor confidence would guide efforts to deepen the market responsibly.

With the inclusion of commercial papers, NGX now offers an integrated environment spanning equities, fixed income, ETFs, derivatives and short-term debt instruments.