CBN to Take Direct Control of Nigeria’s Fixed Income Market by December

CBN to Take Direct Control of Nigeria’s Fixed Income Market by December

 

 

The Central Bank of Nigeria (CBN) has announced plans to take over direct oversight of the settlement and trading platform of the country’s fixed income market by December.

 

Currently, the market is operated by the FMDQ Group, but the apex bank said the move is part of ongoing reforms aimed at enhancing transparency, efficiency, and regulatory oversight in the sector.

 

In a circular dated September 29, signed by Okey Umeano, Acting Director of the Financial Markets Department, the CBN stated that the initiative will position the fixed income market as “a key enabler for monetary policy transmission and economic growth.”

 

The apex bank explained that the reforms would allow it to directly manage the trading platform and handle end-to-end settlement activities through its established financial market settlement system. The rollout will be gradual to ensure stability.

 

“The end-to-end testing of the new settlement process will take place in the second week of October, followed by a pilot phase running alongside the current structure to ensure operational stability,” the circular noted.

 

If the pilot is successful, the full migration of fixed income settlement activities to the CBN platform is slated for November 3, 2025, while activation of the CBN-sponsored trading environment for primary dealers, market makers, pension fund administrators, and other authorised participants is targeted for December 1, 2025.

 

The CBN emphasised that the reforms would strengthen market integrity, streamline operations, and establish a unified regulatory framework, ensuring “end-to-end visibility and supervisory oversight of fixed income transactions.”

 

The apex bank also called for the cooperation of the Financial Markets Dealers Association (FMDA) in the transition, recognising its critical role in shaping Nigeria’s financial markets.

 

The CBN reassured stakeholders of its commitment to developing the fixed income market and promised a coordinated implementation to prevent market disruptions, in the best interest of all participants and the broader financial system.