By Seun Ibiyemi
Nigeria’s plan to allow the Central Bank of Nigeria (CBN) to take over operations of the nation’s fixed-income market is likely to be withdrawn following objections from key government institutions, Bloomberg has reported.
According to the report, the Ministry of Finance, the Securities and Exchange Commission (SEC), and the CBN are currently reviewing the proposal, which would have transferred control of the trading platform and settlement process for fixed-income and foreign-exchange transactions to the apex bank beginning in November.
Sources familiar with the discussions said the proposal is expected to be scrapped within a month, citing existing laws that do not permit such a transfer of authority.
The person, who asked not to be identified because the talks are private, noted that the review was initiated to ensure compliance with Nigeria’s financial market regulations.
The CBN had earlier defended the plan, describing it as part of efforts to enhance transparency and efficiency in market operations.
However, the move has drawn criticism from market participants who fear it could centralize too much power in the apex bank and undermine the SEC’s oversight role.
Currently, most bonds and other fixed-income instruments in Nigeria are traded on FMDQ OTC Plc using a Bloomberg LP-provided platform, while the Nigerian Exchange Limited (NGX) also facilitates fixed-income trading.
Bloomberg reported that the CBN, SEC, and FMDQ did not respond to requests for comment, while an NGX spokesperson confirmed that fixed-income trading continues as usual.
Nigeria’s fixed-income market, one of the largest in Africa, is dominated by government securities. The SEC regulates capital market activities, while the CBN oversees monetary policy and manages government debt issuance.
If the review results in a withdrawal of the proposal, it would mark a significant reversal of the CBN’s earlier plan and signal a reaffirmation of existing market structures and regulatory boundaries.