CBN's Takeover of Fixed-Income Market Raises Regulatory Concerns in Nigeria

The Central Bank of Nigeria (CBN) announced a sweeping overhaul of the country's fixed-income market to improve transparency and efficiency in monetary policy transmission. The CBN will directly control the trade platform and settlement process for Nigeria's fixed-income securities, including treasury bills and bonds.

This move, set to begin in November 2025, aims to reduce arbitrage opportunities, strengthen policy decisions, and enhance market monitoring. However, the takeover has sparked regulatory concerns, particularly with the Securities and Exchange Commission (SEC), raising issues of legal ambiguity and potential disruptions in the established market structure.