Dangote Cement Plc has become the first company to list Commercial Papers (CPs) on Nigerian Exchange Limited (NGX), marking a structural shift in Nigeria’s short-term debt market.
The listing follows NGX’s introduction of a Commercial Paper window on December 3, 2025, after receiving approval from the Securities and Exchange Commission (SEC), expanding the Exchange’s product suite and deepening Nigeria’s domestic debt capital market.
Details of the Issuance
According to BusinessDay, Dangote Cement’s Series 1 and Series 2 Commercial Papers were admitted under its N500 billion Commercial Paper Issuance Programme.
The N19.95 billion Series 1 CP has a tenor of 181 days and will mature on May 20, 2026. The N99.92 billion Series 2 CP carries a tenor of 265 days and is scheduled to mature on August 12, 2026.
Both instruments were issued at a discount and will be redeemed at par value of N1,000 upon maturity. Series 1 and Series 2 offered implied yields of 17.50 percent and 19 percent, respectively.
David Adonri, Vice Chairman of Highcap Securities Limited, described the development as a milestone for the domestic debt market. “Dangote Cement’s Commercial Paper listing on NGX signals growing sophistication in Nigeria’s short-term debt market. The attractive yields of these instruments highlight strong investor appetite for high-quality, short-tenor corporate debt, and provide a benchmark for future issuances,” he said.
NGX’s Strategic Expansion
Temi Popoola, Group Managing Director and Chief Executive Officer of NGX Group, said the launch aligns with the Exchange’s broader strategy to strengthen capital formation.
“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,” Popoola said.
“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.”
Commercial Papers are unsecured short-term debt instruments used by corporates to finance working capital and immediate funding needs. Historically, Nigeria’s CP market has operated largely over-the-counter, limiting transparency and secondary market liquidity.
By admitting CPs to trading, NGX introduces greater visibility, structured price discovery and improved tradability for short-term instruments.
How Nigeria Compares Across Africa
While Commercial Paper markets are established in several African economies, Nigeria’s move formalises a segment that had largely operated outside exchange visibility.
South Africa operates one of the continent’s most mature CP markets, with active issuance among banks and corporates.
Kenya also maintains a robust short-term debt market under the Capital Markets Authority, with regular CP issuances by financial institutions and major corporates.
Morocco and Egypt similarly support structured corporate short-term instruments.
Within West Africa, short-term corporate instruments are available through the BRVM regional exchange, covering markets such as Ivory Coast and Senegal, though with comparatively lower liquidity.
Nigeria’s development narrows the structural gap between its market and those of more advanced African economies.
Implications for Issuers and Investors
The listing comes amid elevated interest rates and tighter credit conditions, prompting corporates to seek flexible funding options.
Short-tenor instruments such as CPs offer quicker access to liquidity, while investors benefit from competitive yields relative to traditional fixed-income products.
Dangote Cement’s transaction reinforces NGX’s ambition to position itself as a full-spectrum capital-raising platform, supporting funding across equities, bonds and short-term instruments.
By Olamilekan Okebiorun, Business Insider Africa
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