Commercial Paper Growth in Nigeria: A Shift to Exchanges

Commercial paper (CP) is increasingly recognized as a vital short-term funding instrument for Nigerian companies, traditionally reliant on bank overdrafts and short-tenor loans. In 2026, CP issuances in Nigeria reached approximately N1.3 trillion, indicating its growing importance in corporate financing.

While much of this activity occurs over the counter (OTC), transitioning to an organized exchange could improve transparency, issuer visibility, and investor access. Jude Chiemeka, Chief Executive Officer of Nigerian Exchange Limited, stated that CP provides eligible corporates with a flexible means to access short-term capital directly from investors, while offering investors additional opportunities across the fixed-income spectrum.

Listing CP on an exchange not only enhances the trading experience but also supports price discovery and deeper secondary-market activity, ultimately benefiting the broader market ecosystem.