CBN to Assume Full Control of Nigeria’s Fixed‑Income Market by Nov 3 2025

When Central Bank of Nigeria announced it will take outright command of the nation’s fixed‑income market this November, the financial world sat up straight.

The plan, signed off by Okey Umeano, Acting Director of the Financial Markets Department, rolls out in three phases and promises a market that’s cleaner, faster and fully under the bank’s supervisory eye.

Set against a backdrop of a money supply that swelled to N119.52 trillion in August 2025, the move is more than a technical tweak – it’s a reshaping of how Nigeria’s debt instruments will be bought, sold and settled.

Why This Matters: Historical Context

For years, Nigeria’s bond market has operated on a patchwork of platforms run by dealers, with the Financial Markets Dealers Association (FMDA) acting as the de‑facto gatekeeper. While the system kept cash flowing, analysts have repeatedly flagged opacity, settlement delays and a mismatch between monetary policy and market reaction.

Back in 2019, the CBN hinted at a centralized settlement engine, but the idea never left the drawing board. Fast‑forward to 2025, soaring liquidity and volatile exchange rates have turned those early whispers into a pressing necessity.

Inside the Reform: Phased Roll‑Out

The reform timetable is laid out like a playbook. First, User Acceptance Testing (UAT) kicks off in the second week of October 2025 – a sort of dress rehearsal where the new platform is run side‑by‑side with the legacy system.

Next comes a Pilot Phase, lasting a few weeks, where selected dealers swing the new system while the old one stays live, giving everyone a safety net.

The climax arrives on CBN Fixed Income Market TransitionNigeria. On November 3, 2025, the settlement process flips entirely to the CBN’s own infrastructure, and the bank assumes direct management of the trading platform.

In the CBN’s words, the shift will "enable the bank 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."

Voices from the Frontline

Odinaka Linus‑Nwokonkwo, a senior fixed‑income trader, warned on News Central TV (October 3, 2025) that the existing settlement bottlenecks have sometimes caused a "one‑day lag that ripples through the entire market," and that the CBN’s takeover could finally cut that lag in half.

But not everyone is cheering. Shuaibu Idris, economist and Managing Director at Time Line Consult Limited, raised eyebrows on Channel Africa the same day, questioning whether a single entity overseeing both regulation and execution could unintentionally tilt interest‑rate dynamics in its favor.

He said, "When the regulator becomes the market operator, the line between supervision and market participation blurs. We need rock‑solid safeguards to prevent any perception of rate manipulation."

The FMDA, meanwhile, has pledged to work closely with the CBN, feeding back on system glitches and ensuring that dealer members are trained before the go‑live date.

Economic Ripple Effects

On the macro front, a more transparent fixed‑income market could improve the transmission of monetary policy. If the CBN can see every trade in real time, adjustments to the policy rate may filter through faster, potentially anchoring inflation expectations.

Investors, especially foreign ones, often sideline Nigeria because of perceived market opacity. A unified platform promises clearer price signals, which could lower risk premiums and tighten yields on government bonds.

However, the transition also carries short‑term risks. Any hiccup in settlement could freeze cash for banks, harming liquidity at a time when the country is already wrestling with a widening current‑account deficit.

Data from the Central Bank shows broad money (M2) growing by roughly 2.2 % month‑on‑month between June and August 2025, a sign that excess liquidity is already in the system. If the new settlement engine inadvertently throttles that flow, short‑term borrowing costs could spike.

Looking Ahead: What to Watch

First, the success of UAT in October will be a litmus test. Traders will be monitoring system latency, error rates and how quickly the platform reconciles trades.

Second, the FMDA’s post‑pilot feedback will likely shape fine‑tuning. Expect a handful of regulatory tweaks in early November as the CBN calibrates its oversight tools.

Third, watch the bond yields. If the market perceives the new regime as credible, the 10‑year government bond spread could narrow by 30‑40 basis points within six months.

Finally, keep an eye on policy statements from the CBN governor. A clear commitment to safeguarding market fairness will be essential to silence sceptics like Idris.

Key Facts

• Decision announced: CBN to control fixed‑income market – effective November 3, 2025.
• Primary signatory: Okey Umeano, Acting Director, Financial Markets Department.
• Phased implementation: UAT (Oct 2025) → Pilot Phase → Go‑Live (Nov 3, 2025).
• Broad money supply: N119.52 trillion (Aug 2025), up from N107 trillion (Aug 2024).
• Key stakeholders: FMDA, Odinaka Linus‑Nwokonkwo (trader), Shuaibu Idris (economist, Time Line Consult Limited).