4 weeks ago
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Financial marketplace analysts person said the Central Bank of Nigeria (CBN)’s determination to presume power of the Nigerian Fixed Income Market from November 2025 is simply a bold measurement towards reinforcing transparency, restoring regulatory clarity, and improving the effectiveness of monetary argumentation transmission.
In a circular signed by the acting manager of the Financial Markets Department, Okey Umeano, the apex slope announced that it would straight supervise the trading level and colony of fixed-income transactions, a relation antecedently coordinated by FMDQ.
According to the CBN, the determination marks the archetypal signifier of a broader betterment designed to “strengthen marketplace integrity, streamline operations, and make a unified regulatory model that guarantees end-to-end oversight of fixed income activities.”This decision, analysts say, volition curtail the autonomy of backstage marketplace platforms specified arsenic FMDQ, whose relation successful sovereign indebtedness trading and colony has often drawn scrutiny implicit transparency and terms find practices.
According to the caput of Consulting astatine Agusto Consulting Limited, Jimi Ogbobine, the latest determination of the CBN is simply a ‘pivotal moment’ for Nigeria’s indebtedness market, saying that with the caller argumentation by the CBN, FMDQ volition present person to ore afloat connected non-sovereign indebtedness instruments.
“This could beryllium transformative for the Nigerian indebtedness landscape, arsenic it whitethorn propulsion FMDQ to thrust the maturation of different marketplace segments specified arsenic greenish bonds, sub-national bonds, and commercialized papers. It besides opens the doorway for much innovation successful firm enslaved listings, including those from different African companies’l helium stated.
A elder trader astatine 1 of the Tier-1 banks, who spoke anonymously, said the betterment was agelong overdue, fixed the CBN’s statutory mandate to support monetary and fiscal stability. “This modulation volition decidedly change the operating scenery for FMDQ.
“The CBN’s jurisdiction rightly extends to wealth marketplace instruments specified arsenic Treasury Bills, FX derivatives, and commercialized papers. FMDQ inactive retains operational scope successful firm and sub-national indebtedness nether SEC oversight, but successful sovereign instruments, regulatory clarity has ever been inevitable,” the trader observed.
Another marketplace subordinate pointed retired that the handling of naira forwards successful caller years had exposed structural weaknesses that warranted person oversight by the cardinal bank.
To him, “What we spot present is the CBN correcting long-standing structural misalignments. Before the displacement towards greater autonomy nether FMDQ, the FMDA worked intimately with the CBN. That collaboration had ensured stronger coordination and marketplace discipline, thing this betterment is present seeking to restore.”
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