The Central Bank of Nigeria (CBN) has announced plans to take control of the country’s fixed income market starting in November 2025. The move means the bank will directly manage both settlement and trading activities, marking a major change in Nigeria’s financial system.
According to the CBN, the reform is aimed at improving transparency and efficiency in the fixed income market. By consolidating operations, the bank hopes to strengthen oversight, reduce duplication, and create a more reliable structure. Officials believe the change will also improve monetary policy transmission and enhance market stability.
Industry analysts have expressed mixed views on the development. Supporters say CBN control could boost investor confidence and reduce fragmentation in the fixed income market. However, critics argue that excessive centralization may stifle innovation and limit smaller firms. Some experts also note that FMDQ, which previously managed much of the infrastructure, had improved efficiency and reduced settlement failures.
The transition will be gradual. The first phase will involve testing the new platform, followed by a pilot run alongside the existing framework. The official switch for settlement operations is scheduled for 3 November 2025, while the trading platform will migrate fully by 1 December 2025.
Meanwhile, trading activity in Nigeria’s fixed income market remains strong. Treasury bill yields eased slightly across several maturities, with the NTB maturing October 9, 2025, closing at 16.37 percent. Longer-dated bills also posted small declines in yields, reflecting strong investor demand.
As Nigeria prepares for this reform, the CBN faces the challenge of balancing stricter oversight with continued market growth. The performance of the fixed income market under this new arrangement may define its role in shaping the country’s economic future.
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