Landmark Debt Market Development: Dangote Cement’s Commercial Papers Debut on Nigerian Exchange

Dangote Cement Makes History as First Company to List Commercial Papers on NGX

Dangote Cement Plc has become the first corporate issuer to list commercial papers (CPs) on the Nigerian Exchange Limited (NGX), marking a milestone in the development of Nigeria’s short-term debt capital market. The listing, which took effect on 18 February 2026, involves two tranches with a combined value of ₦119.87 billion, under the company’s broader ₦500 billion CP issuance programme.

Landmark Listing Under ₦500bn Programme

The admission comprises Series 1 and Series 2 Commercial Papers issued by Dangote Cement. The Series 1 tranche, valued at ₦19.95 billion, carries a tenor of 181 days and matures on 20 May 2026, while the larger Series 2 tranche of ₦99.92 billion has a tenor of 265 days and matures on 12 August 2026. Both series were issued at a discount and are redeemable at their par value of ₦1 000 upon maturity.

These instruments were priced to offer implied yields of 17.50 per cent for Series 1 and 19.00 per cent for Series 2, reflecting investor compensation for short-term credit risk in the current macroeconomic environment.

Strategic Significance for Nigeria’s Debt Markets

The NGX listing represents the first commercial paper admission on the bourse since it introduced a dedicated framework for CP trading in 2025. Before this, commercial papers issued by Nigerian corporates were primarily traded on over-the-counter platforms, such as the FMDQ Securities Exchange, limiting visibility and secondary market accessibility.

By enabling CPs to trade on a regulated equity and debt marketplace, NGX aims to enhance market transparency, tradability and investor participation in short-term corporate financing instruments. This structural shift supports broader efforts to deepen Nigeria’s capital markets and offer corporates alternative avenues for managing working capital and liquidity requirements.

Implications for Investors and Corporate Issuers

Commercial papers are unsecured, short-term debt instruments typically used by corporations to meet immediate funding needs at competitive rates compared to traditional bank financing. The NGX’s CP listing framework offers investors a standardised, regulated venue to buy and sell these instruments, increasing price discovery and market liquidity.

For investors, the prominence of a blue-chip issuer like Dangote Cement listing CPs on NGX may enhance confidence in the emerging short-term debt segment and attract broader participation from institutional and qualified retail investors. For corporates, improved access to the debt capital markets through tradable instruments can diversify funding sources and reduce reliance on costly short-term credit lines.

Broader Capital Market Context

The historic listing falls against a backdrop of sustained growth in Nigeria’s equities and fixed-income markets, with the NGX continuing to attract diverse issuances and listings. Recent data shows the exchange’s broad market indices extending gains, underscoring resilience among local financial assets.

Dangote Cement’s commercial paper listing on NGX represents a significant advancement for Nigeria’s capital markets, deepening the short-term debt segment and offering enhanced tools for both issuers and investors. As the NGX framework for tradable commercial papers gains traction, further issuances from corporate Nigeria may follow, fostering a more robust and integrated financial ecosystem.