CBN to Take Full Control of Fixed Income Market from November 2026

According to the apex bank:

“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.”

By centralizing operations, the CBN intends to provide end-to-end visibility, transparency, and supervisory oversight across all fixed income transactions.
This marks a significant shift in how government securities, bonds, and other fixed income products will be traded and settled in Nigeria.

The CBN outlined three main objectives driving this phased reform:

• Strengthening Market Integrity: Curbing irregularities and ensuring fair play among market participants.
• Streamlining Operations: Reducing fragmentation and ensuring seamless settlement processes.
• Establishing a Unified Regulatory Framework: Enhancing supervisory control and improving confidence in the fixed income market.

To guarantee a smooth transition, the CBN emphasized collaboration with key stakeholders, particularly the Financial Markets Dealers Association (FMDA), which plays a pivotal role in shaping Nigeria’s financial market operations.

The CBN disclosed that the transition will be rolled out in stages to minimize disruptions.
The roadmap for the first phase includes:

1. User Acceptance Testing (UAT): Scheduled for the second week of October 2025. This will test the robustness and efficiency of the proposed settlement infrastructure.
2. Pilot Phase: After successful testing, a pilot system will run alongside the existing framework to ensure operational stability.
3. Go-Live 1 (Settlement Process): From November 3, 2025, all fixed income market activities will migrate to the new CBN-controlled settlement system.
4. Go-Live 2 (Trading Platform): By December 1, 2025, the CBN-sponsored trading environment will be fully operational, serving Primary Dealers, Market Makers (PDMM), Pension Fund Administrators (PFAs), and other licensed participants.

This phased approach ensures market participants can adjust seamlessly without disruptions to trading or settlement flows.

The CBN has acknowledged the critical contributions of the FMDA in the development of Nigeria’s financial markets and has called for continued cooperation.
The regulator assured that the reform will be executed in a coordinated manner that protects the interests of all market participants.

In its statement, the apex bank emphasized:

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

This fixed income market overhaul is only one part of a broader set of regulatory reforms initiated by the CBN to stabilize Nigeria’s financial ecosystem.
Last month, the bank issued a new directive to Domestic Systemically Important Banks (DSIBs), mandating early succession planning for top executives, including Managing Directors and Chief Executive Officers.

According to the circular signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department, all DSIBs must obtain regulatory approval for a successor MD/CEO at least six months before the expiration of the incumbent’s tenure.
This directive is aimed at strengthening corporate governance and minimizing disruptions that could destabilize the financial system.

The CBN’s takeover of the fixed income market settlement and trading systems has far-reaching implications:

• For Investors: Greater transparency, reduced risks of malpractice, and increased confidence in Nigerian bonds and treasury instruments.
• For Pension Funds and Banks: Streamlined participation in government securities trading, ensuring more secure portfolio management.
• For Monetary Policy: A more effective transmission channel, allowing the CBN to better control liquidity and interest rates.
• For the Economy: A stronger financial market infrastructure, attracting both local and foreign investors while supporting economic growth.

With over ₦30 trillion worth of government securities in circulation, Nigeria’s fixed income market is one of the largest segments of its financial system.
By centralizing settlement and trading, the CBN is positioning itself to safeguard systemic stability and align Nigeria’s market operations with global best practices.

Market analysts predict that if implemented effectively, this reform could significantly improve Nigeria’s credit market reputation, attract foreign investors, and provide long-term support for the government’s fiscal and monetary policies.

The Central Bank of Nigeria’s decision to take full control of the Fixed Income Market from November 2025 represents a landmark moment in the country’s financial history.
By unifying oversight of both trading and settlement, the CBN is ensuring a more transparent, resilient, and efficient market.
While challenges may arise during the transition, stakeholders remain optimistic that the reform will deepen confidence in Nigeria’s financial markets and strengthen the foundation for sustainable economic growth.

FAQs on CBN Fixed Income Market Reform

1. When will the CBN take control of the Fixed Income Market?

The first phase begins on November 3, 2025 with settlement, followed by trading platform activation on December 1, 2025.

2. What is the goal of this reform?

The reform aims to enhance transparency, streamline operations, and establish a unified regulatory framework for Nigeria’s fixed income transactions.

3. Who are the stakeholders involved?

Key stakeholders include the FMDA, Primary Dealers, Market Makers, Pension Fund Administrators, and other authorized participants.

4. How will this affect investors?

Investors can expect increased transparency, reduced risk, and improved confidence in Nigeria’s government securities market.

5. How does this connect with other CBN reforms?

It complements directives on succession planning for banks, reinforcing corporate governance and ensuring stability in the financial system.