Funding the short term: Why Commercial Paper belongs on an Exchange

For many Nigerian companies, short-term funding has traditionally meant bank overdrafts and short-tenor loans.

These remain important sources of finance, but as businesses grow and their funding needs become more sophisticated, relying on a single channel is no longer enough. Companies need access to a broader range of funding options, including the capital market.

Commercial paper (CP) is increasingly becoming part of that mix. A short-term, unsecured debt instrument with maturities typically below 270 days, CP enables eligible companies to raise funds for working capital and other near-term financing needs.

The scale of activity shows just how relevant the instrument has become. In 2026 alone, commercial paper issuances in Nigeria reached approximately N1.3 trillion, a substantial pool of short-term corporate funding already being mobilised through the instrument.

Yet much of this activity continues to take place over the counter. The OTC market has played an important role in developing Nigeria’s CP market, but bringing more of this activity onto an organised exchange can add another dimension: greater transparency, stronger issuer visibility, broader investor access and the potential for secondary-market liquidity.

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Why listing matters…

The case for exchange-listed commercial paper is not simply about changing where an instrument trades. It is about what organised market infrastructure can add to the experience of issuers and investors, and ultimately to the depth of the market itself.

For issuers, listing creates visibility and builds a market track record. Every successful…