Nigeria: CBN announces phased restructuring of fixed income market to enhance transparency and oversight

The Central Bank of Nigeria (CBN) has unveiled plans for a phased restructuring of the Nigerian Fixed Income Market, in a move aimed at deepening transparency, improving efficiency, and consolidating regulatory oversight within the financial system.

In a circular signed by Okey Umeano, Acting Director of the Financial Markets Department, the apex bank disclosed that, beginning November 2025, it will take full control of both the settlement process and the trading platform for fixed income transactions.

According to the CBN, the transition will allow it to directly manage the trading environment while overseeing end-to-end settlement of fixed income instruments under its established settlement infrastructure.

To ensure stability and minimize disruptions, the reforms will be implemented in sequenced stages with the active involvement of the Financial Markets Dealers Association (FMDA) and other key stakeholders. The rollout plan includes:

• User Acceptance Testing (UAT): Slated for the second week of October 2025 to assess the new settlement infrastructure.

• Pilot Phase: A transitional stage running parallel with the current system to support operational adaptation.

• Go-Live 1 (Settlement Process): Migration of fixed income activities to the CBN settlement system on November 3, 2025.

• Go-Live 2 (Trading Platform): Full launch of the CBN-managed trading platform for Primary Dealers, Market Makers, Pension Fund Administrators, and other approved participants on December 1, 2025.

The CBN emphasized that the initiative is designed to “strengthen market integrity, streamline operations, and establish a unified regulatory framework with end-to-end visibility and oversight of fixed income transactions.”

Reaffirming the importance of collaboration, the Bank urged stakeholders to remain engaged throughout the transition, adding: “We look forward to your continued partnership as we deliver a more efficient, transparent, and resilient fixed income market.”

This reform follows a series of recent regulatory measures by the CBN to strengthen governance and resilience in Nigeria’s financial sector. In July, the Bank directed all Domestic Systemically Important Banks (DSIBs) to adopt early succession planning for Managing Directors/Chief Executive Officers and other top executives — a policy intended to bolster governance and mitigate leadership risks.

Analysts note that by consolidating oversight of the fixed income market, the CBN is positioning itself to enhance monetary policy transmission, improve market resilience, and support long-term economic stability.