The Nigerian Exchange Limited (NGX) has launched Commercial Paper (CP) as part of the listings on the local bourse following approval from the Securities and Exchange Commission (SEC), in furtherance of the management’s drive to boost its capitalization.
Commercial Papers (CPs) are short-term, unsecured debt issued by companies to cover working capital needs and other quick obligations. Usually maturing within 270 days, CPs are sold at a discount and redeemed at face value, giving companies a cheaper option than bank loans while offering investors appealing short-term investment opportunities.
Speaking at the launch of the CP, Group Managing Director and CEO of NGX Group, Mr. Temi Popoola, commended the Securities and Exchange Commission for its commitment to driving market growth and encouraging healthy competition throughout the ecosystem.
He enthused: “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. 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.”
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In his remarks during the launching of the CP, the CEO of the Nigerian Exchange Limited, Jude Chiemeka said: “The introduction of Commercial Paper listings represents a major advancement in our mission to provide a full spectrum of capital-raising solutions for 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. NGX will continue to engage with corporates, intermediaries, and investors to deepen liquidity and participation in Nigeria’s debt capital market”, the expert added.
Commenting on the NGX Group’s initiative, , CEO of NGX Regulation Limited, Olufemi Shobanjo, explained that strong oversight would become more essential as the market continued to evolve.
He clarified: “Our priority is to maintain high standards of disclosure, promote accountability and safeguard investor confidence while contributing to market deepening.”
The Nigerian Exchange Limited (NGX), a wholly owned subsidiary of the Nigerian Exchange Group (NGX Group) with operations dating back to 1960, is a leading listing and trading market in Sub-Saharan Africa (SSA) and among the rapidly evolving investment markets globally.
