CBN Takes Over Fixed Income Platform in 2025

The Central Bank of Nigeria (CBN) is implementing a major operational overhaul of the nation’s Fixed Income Market, signaling a move to assume direct and comprehensive control over the trading and settlement infrastructure.

This strategic reform, outlined in a recent circular, aims to significantly enhance transparency, efficiency, and regulatory oversight within the financial ecosystem.

Full Transition by December

The transition process is being executed in phases to ensure minimal disruption, with the ultimate goal of transferring full operational responsibility from the current operator, FMDQ Group, to the CBN’s platform.

The core objectives and timeline for the full migration include:

• Settlement Assumption (November): The CBN is set to take full charge of all end-to-end settlement activities under its established system by November 3. This will streamline operations and strengthen market integrity.
• Trading Platform Control (December): The activation of the CBN-sponsored trading environment for authorized participants including primary dealers, market makers, and pension fund administrators is targeted for December 1.
• Unified Oversight: This shift will establish a unified regulatory framework, granting the CBN end-to-end visibility and supervisory oversight of all fixed income transactions, thereby improving the market’s ability to transmit monetary policy effectively.

Implementation Steps

To guarantee a seamless transition, the CBN scheduled comprehensive end-to-end testing of the new settlement process for the second week of October. This will be followed by a pilot phase running concurrently with the existing structure to ensure operational stability before the final migration.

The CBN has acknowledged the pivotal role of stakeholders, particularly the Financial Markets Dealers Association (FMDA), and emphasized its commitment to a coordinated implementation that serves the best interests of all participants and the financial system at large.

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