From November 1st 2025, Nigeria’s Central Bank (CBN) will control the trading platform and settlement infrastructure for fixed income management in the country.
This means the CBN will be able to monitor an estimated N119 trillion-plus financial system and implement Nigeria’s monetary policy more effectively.
Fixed income refers to investments where the borrower or issuer makes scheduled payments for a fixed amount.
Government bonds, treasury bills, and corporate debt securities are some of such instruments.
Companies can use fixed income to raise capital for expansion while governments often use them to fund infrastructure projects.
But as the country navigates inflation and foreign exchange volatility, what does this mean for Nigerians?
Managing a transition like this requires careful coordination.
Any technical glitches could undermine confidence in a market that handles billions of Naira daily.
If implemented effectively, this reform could bring transparency and efficiency to a market long plagued by opacity and fragmentation, while positioning the country to better manage growing money supply and economic challenges.
For investors, particularly pension funds managing workers’ retirement contributions—the unified platform promises lower transaction costs and reduced settlement risks.
The end-to-end visibility means trades are tracked from execution to completion, making market manipulation significantly harder.
The banking sector faces the steepest adjustment curve. Financial institutions that have profited from the current system’s complexity will need to adapt to a more transparent, tightly regulated environment.
However, the long-term prize is substantial: a deeper, more liquid market that can attract foreign institutional investors who have historically been wary of Nigeria’s market infrastructure.
