Commercial paper (CP) is a short-term, unsecured debt instrument issued by private companies to raise working capital.
Because it is not backed by collateral, investors rely heavily on the issuer’s financial strength and credit rating.
In Nigeria, CPs typically have tenors between 90 and 364 days and are categorized as money market instruments due to their short maturity.
They are usually issued at a discount, but investors seeking higher returns often choose CPs with an implied yield with returns paid at maturity. Companies with weaker credit ratings typically offer higher discount rates and implied yields to attract investors.
CPs remain popular among investors because they generally offer higher returns than bank fixed deposits while maintaining relatively low risk for high-grade issuers.
Companies use CPs to finance inventory purchases, short-term operational needs, bridge financing, and cash-flow management under the FMDQ Commercial Paper Programme, which can range from N10 billion to over N200 billion.
Mostly large, well-rated companies with strong balance sheets, including
Typical issuers include Dangote Cement, MTN Nigeria, Flour Mills of Nigeria, Nigerian Breweries, BUA companies, Lafarge Africa, Seplat, Dangote Sugar, Daraju Industries and others.
Commercial paper is mainly purchased by
Most reliable sources are
Insurance stocks are typically assessed through the following ratios and other comparable:
Daraju Industries closing 27th November 2025
Dangote Cement PLC closed 19th November 2025
Miskay Boutique International Limited closed 21st November 2025
Commercial paper is a suitable option for investors seeking stable, predictable short-term returns, minimal price volatility, and a higher yield compared to regular bank deposits, especially when trying to hedge against uncertain market conditions.
Commercial paper is a suitable option for investors seeking stable, predictable short-term returns, minimal price volatility, and a higher yield compared to regular bank deposits, especially when trying to hedge against uncertain market conditions.
However, it may not be the best fit if you require liquidity before maturity, have a low tolerance for issuer credit risk, or prefer to invest in long-term assets.