The Central Bank of Nigeria has unveiled plans for a phased overhaul of the Nigerian Fixed Income Market to boost transparency and efficiency in the financial system.

In a notice signed by the Acting Director of the Financial Markets Department, Okey Umeano, the CBN said the first phase will begin in November, with the bank assuming full control of the settlement process and trading platform for fixed income transactions.

The reform, part of wider financial market initiatives, aims to strengthen regulatory oversight, improve monetary policy transmission, and enhance the market’s contribution to 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 stated that this phase is aimed at strengthening market integrity, simplifying operations, and creating a unified regulatory framework that provides end-to-end transparency and supervisory oversight of fixed income transactions.

To minimize disruption and ensure a smooth transition, the CBN said the rollout will be staged in close collaboration with key stakeholders, including the Financial Markets Dealers Association.

Milestones for the first phase are as follows:

User Acceptance Testing: Beginning in the second week of October 2025, covering end-to-end testing of the new settlement infrastructure.

Pilot Phase: After UAT, the system will run in parallel with the existing platform to confirm stability.

Go-Live 1 – Settlement Process: Full migration of fixed income market transactions to the new settlement system on November 3, 2025.

Go-Live 2 – Trading Platform: Launch of the CBN-sponsored trading environment for Primary Dealers, Market Makers, Pension Fund Administrators, and other authorized participants on December 1, 2025.

The CBN recognised the FMDA’s key role in shaping Nigeria’s financial markets and urged sustained collaboration.

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

Reaffirming its commitment to market development, the CBN assured stakeholders that the reforms would be rolled out in a coordinated manner to prevent disruptions and protect the interests of market participants and the wider financial system.

Just last month, the Bank issued a sweeping directive to Domestic Systemically Important Banks, requiring early succession planning for their MD/CEOs and other senior executives.