NGX unveils commercial paper listings

The Nigerian Exchange Limited (NGX) has expanded its offerings with the introduction of commercial paper listings approved by the Securities and Exchange Commission (SEC).

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 NGX 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.

AMCON achieves N3.6trn repayment milestone, launches global hunt for hidden assets

It stated that the development will provide greater visibility, transparency, and liquidity for short-term debt instruments.

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

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

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

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

The Star