The Central Bank of Nigeria (CBN) has announced that it will take direct control of the fixed income market’s settlement and trading platform by December.

The FMDQ Group currently operates in the fixed income market.

The decision is part of the central bank’s continuing reforms to improve transparency, efficiency, and regulatory monitoring, according to a circular dated September 29 and signed by Okey Umeano, CBN’s acting director of the financial markets department.

The regulator stated that this will reposition the fixed income market as “a critical enabler to support monetary policy transmission and the growth of the economy”.

The policy change is likely to allow the CBN to take direct control of the trading platform and handle end-to-end settlement activities using its existing settlement system for financial market transactions.

The CBN stated that the measures will be implemented gradually to guarantee stability.

According to the apex bank, end-to-end testing of the new settlement procedure would take place “in the second week of October 2025,” followed by “a pilot phase that will run concurrently with the existing structure to ensure operational stability.”

“Subject to satisfactory completion of the pilot, the full migration of fixed income settlement activities to the CBN platform is scheduled for November 3, 2025,” the circular reads.

“The activation of the CBN-sponsored trading environment for primary dealers, market makers, pension fund administrators and other authorised participants is targeted for December 1, 2025”.

The CBN stated that the project would increase market integrity, streamline processes, and develop a consistent regulatory framework that “ensures end-to-end visibility and supervisory oversight of fixed income transactions”.

The top bank urged the Financial Markets Dealers Association (FMDA) to cooperate in the transition, recognising its role in defining Nigeria’s financial markets.

The CBN stated that it is completely committed to the sustained development of the fixed-income market.

The financial regulator stated that the modifications will be implemented in a coordinated manner to avoid market disruptions, which is in the best interests of market participants and the overall financial system.