Nigeria: CBN Takes Direct Control of Fixed Income Market

The Central Bank of Nigeria (CBN) has announced a phased operational overhaul of the Nigerian Fixed Income Market in a deliberate move to deepen transparency and efficiency in the financial ecosystem.

Acting Director of the Financial Markets Department at the CBN, Okey Umeano, in a memo, stated that 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, he added, 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.

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). Fixed income refers to any type of investment under which the borrower or issuer is obliged to make payments of a fixed amount on a on a fixed schedule.

Meanwhile, Nigeria's broad money supply surged to N119.52 trillion in August 2025, representing an increase from N117.4 trillion recorded in June 2025.

The August figures reflect a year-on-year rise from N107 trillion in August 2024, demonstrating the persistent expansion of liquidity in the financial system despite concerns over inflationary pressures and exchange rate volatility.

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