Basics of Issuing Commercial Papers in Nigeria

Introduction

In the dynamic realm of business financing, enterprises often find themselves in need of immediate capital to support short-term operational needs. This necessity for prompt funds has led many business owners to explore the avenue of commercial paper. This article highlights the basics of issuing commercial papers in Nigeria.

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Recent legislation on Commercial Papers in Nigeria

"In October 2023, desirous of building a sustainable and credible CP/NICP market in the Nigerian financial market landscape, FMDQ Exchange updated its registration and quotation process for commercial papers in line with global standards by amending the Commercial Paper Registration and Quotation Rules. These Rules, which have been adopted from the Guidelines, other Applicable Law and international regulations relating to the issuance of CPs and NICPs, aim to aid price formation in the money market and foster the emergence of a corporate money market benchmark. Issuers/Promoters who wish to register and quote their  Ps/NICPs on the FMDQ Exchange Platform must, in addition to complying with these Rules, execute a written undertaking accepting to comply with the post-Quotation requirements of FMDQ Exchange as well as the declaration of compliance in the manner prescribed in Templates II, III, and IV of the Templates Guide. These Rules are to be read in conjunction with the relevant FMDQ Rules and such other relevant Applicable Law."