The Central Bank of Nigeria (CBN) has announced a phased operational overhaul of the Nigerian Fixed Income Market in a strategic move to deepen transparency and efficiency in Nigeria’s financial ecosystem.
According to a formal communication signed by Okey Umeano, Acting Director of the Financial Markets Department at the CBN, the first phase of the reform will see the apex bank take full control of both the settlement process and trading platform for fixed income transactions starting from November this year.
The initiative, which forms part of broader financial market reforms, is designed to enhance regulatory oversight and strengthen the market’s role in supporting monetary policy transmission and economic growth.
“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.
Establishing a unified regulatory framework
The CBN emphasized that the objective of this phase is to “strengthen market integrity, streamline operations, and establish a unified regulatory framework that ensures end-to-end visibility and supervisory oversight of fixed income transactions.”
To ensure minimal disruption and a smooth transition, the implementation will be executed in stages, with active collaboration from key stakeholders, including the Financial Markets Dealers Association (FMDA).
Outlined milestones for the first phase include:
- User Acceptance Testing (UAT): Scheduled for the second week of October 2025, this will involve comprehensive testing of the proposed settlement infrastructure.
- Pilot Phase: Following successful UAT, a pilot phase will run concurrently with the existing system to ensure operational stability.
- Go-Live 1 (Settlement Process): Full migration of fixed income market activities to the new settlement process is slated for November 3, 2025.
- Go-Live 2 (Trading Platform): Activation of the CBN-sponsored trading environment for Primary Dealers, Market Makers (PDMM), Pension Fund Administrators (PFAs), and other authorized participants is targeted for December 1, 2025.
Call for continued cooperation
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.
Reaffirming its commitment to market development, the CBN assured stakeholders that the changes will be implemented in a coordinated manner to avoid disruptions and serve the best interests of market participants and the broader financial system.
