Dangote Cement Plc has made history as the inaugural company to list Commercial Papers (CPs) on the Nigerian Exchange Limited (NGX), signalling a significant development in the country’s short-term debt market.
After launching a Commercial Paper (CP) platform on December 3, 2025, with approval from the Securities and Exchange Commission, the Nigerian Exchange Limited welcomed its first CP listing, achieved by Dangote Cement Plc. This milestone signals a major evolution in Nigeria’s short-term corporate debt market.
About the Issuance
The company issued CPs under a N500 billion programme, consisting of Series 1 and Series 2 papers. Series 1, valued at N19.95 billion, carries a 181-day term and matures on May 20, 2026. Series 2, totaling N99.92 billion, has a 265-day term, maturing August 12, 2026. Both series were sold at a discount and will redeem at a par value of N1,000. Investors can expect implied returns of 17.5% for Series 1 and 19% for Series 2.
David Adonri, Vice Chairman of Highcap Securities Limited, described the listing as a “turning point” for Nigeria’s short-term debt segment. He highlighted strong investor demand for secure, short-duration corporate instruments and noted that this move establishes a benchmark for subsequent issuances.
NGX’s Strategic Vision
Temi Popoola, CEO of the NGX Group, said introducing CP listings aligns with the Exchange’s goal to broaden capital formation. He emphasized that bringing CPs onto the official trading platform enhances transparency, strengthens market structure, and creates opportunities for sustainable growth across Nigeria’s economy.
Previously, CPs in Nigeria were primarily traded over-the-counter, which limited visibility and liquidity. Incorporating them into NGX’s framework improves market pricing, facilitates secondary trading, and gives investors clearer access to short-term corporate debt.
Positioning Nigeria in Africa
While several African nations maintain formal CP markets, Nigeria’s step formalizes a previously opaque segment. South Africa boasts one of the continent’s most developed CP markets, actively used by banks and corporations. Kenya, Morocco, and Egypt also operate structured short-term debt instruments.
Within West Africa, the BRVM regional exchange serves countries like Ivory Coast and Senegal, though liquidity remains lower than in Nigeria. The new NGX CP platform narrows the gap with more mature African markets.
Benefits for Corporates and Investors
High interest rates and tighter credit conditions have increased corporate demand for flexible financing. CPs offer fast access to funds while providing investors with attractive returns compared to conventional bonds.
Dangote Cement’s listing demonstrates NGX’s ambition to function as a full-service capital-raising platform, covering equities, bonds, and now short-term debt instruments.