CBN takes direct control of Nigeria’s fixed-income market to boost transparency

The Central Bank of Nigeria (CBN) is launching a phased operational overhaul of the Nigerian Fixed Income Market starting in November. The initiative aims to significantly boost transparency and efficiency across Nigeria’s financial ecosystem.

The first phase of the reform is set to begin in November. As detailed in a formal communication signed by Okey Umeano, Acting Director of the Financial Markets Department, the CBN will be taking full, direct control of both the trading platform and the settlement process for all fixed income transactions.

“This transition will enable the CBN to assume direct responsibility for the management of the trading platform and handle end-to-end settlement activities under the Bank’s established settlement system for financial market transactions,” the statement read.

This market intervention is a key part of broader financial market reforms. The CBN’s core objective is to enhance regulatory oversight and strengthen the market’s ability to effectively support the transmission of monetary policy and, ultimately, foster economic growth.

The first phase of the overhaul is structured around four key milestones. It begins with User Acceptance Testing (UAT), which is scheduled for the second week of October 2025 and involves comprehensive testing of the new settlement infrastructure.

Following successful UAT, a Pilot Phase will run concurrently with the existing system to guarantee operational stability before full migration.

The first major step, Go-Live 1 (Settlement Process), is slated for November 3, 2025, marking the full migration of fixed income market activities to the new settlement process.

Finally, the second major step, Go-Live 2 (Trading Platform), is targeted for December 1, 2025, and will activate the CBN-sponsored trading environment for Primary Dealers, Market Makers (PDMM), Pension Fund Administrators (PFAs), and other authorised participants.

The CBN acknowledged FMDA’s pivotal role in developing Nigeria’s financial markets and called for continued cooperation.

“We look forward to your continued partnership as we work together to deliver a more efficient, transparent, and resilient fixed income market,” the Bank stated.